- All earned income (made from working or business) and unearned income (unemployment, interest, dividends, retirement pay - including a portion of social security retirement pay is taxable. Disability pay is generally not taxable.
- If your income is greater than the standard deduction ($12,550 for 2021 tax return) you will not have a tax liability (did need to pay taxes) so you are not required to file. However, with this amount of income if you had earned income, you would be entitled to a refund of whatever. Taxes were taken from your check, and you may qualify for the Earned Income Tax Credit which would increase your refund.
- Tax returns can be filed electronically through a tax professional, online software, VITA (which is free filing for low income) or by mail.
- Tax returns are due on April 15th . To file and extension it should be filed by April 15th. There are no late extensions. If you owe your payment is due on April 15th even with an extension.
- This is based on your status on the last day of the year or for separation purposes and dependent purposes 6 months of the year.
Your filing status is based on your living situation. If you are single with no dependents, you can only file single. If you have a dependent, then you can file as head of household (HOH). Married people cand file married filing joint (MFJ) or married filing separate (MFS). A married person can not file head of household unless they have been physically separated for 6 months. For earned income credit purpose, alimony, etc. this should be legally documented. Qualifying widow is where you can claim the deceased spouse for 2 years only when there is minor children in the household.
- Refunds are generally paid within 21 days of the return being accepted. This is taking longer due to stimulus checks and advanced child tax credits. Do decrease delays please make sure this information is accurate.
- Your tax bracket is based on your household income which will determine your tax rate
Tax Year 2021
Tax Rate Single/HOH/MFS Married Filing Joint
10% $ 9,950 or less $ 19,900 or less
12% $ 9,951 – $ 40,524 $ 19,901 - $ 81,049
22% $ 40,525 - $ 86,374 $ 81,050 - $ 172,749
24% $ 86,375 - $ 164,924 $ 172,750 - $ 329,849
32% $ 164,925 - $ 209,424 $ 329,850 - $ 418,849
35% $ 209,425 - $ 523,599 $ 418,850 - $ 628,299
37% $ 523,600 and up $ 628,300 and up