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Liberty Tax Updates

Here's your regular Liberty Tax RGV Updates!

Stay tune and stay up to date!

TAX FILING DEADLINE

The deadline for most people to file their taxes is April 18. There are no plans to extend the filing deadline at this time. Anyone who needs additional time to file can get an automatic six-month extension by filling out Form 4868, which is the Application for Automatic Extension of Time to File U.S. Individual Income Tax Return.


For taxpayers who live or have a company in the disaster region, The Around the Nation section on IRS.gov provides information regarding recent tax relief, including the postponement of some tax-filing and tax-payment deadlines.

February 22

Expanded Tax Benefits

A new fact sheet, FS-2022-10, available now on IRS.gov, describes many of these expanded tax benefits. But the IRS emphasized that these benefits are only available to people who file a 2021 federal income tax return. Benefits include:


• An expanded Child Tax Credit: Families can claim this credit, even if they received monthly advance payments during the last half of 2021.

• An increased Child and Dependent Care Credit: Families who pay for daycare so they can work or look for work can get a tax credit worth up to $4,000 for one qualifying person and $8,000 for two or more qualifying persons.

• A more generous Earned Income Tax Credit: The American Rescue Plan boosted the EITC for childless workers. There are also changes that can help low- and moderate-income families with children.

• The Recovery Rebate Credit: Those who missed out on last year's third-round of Economic Impact Payments (EIP3), also known as stimulus payments, may be eligible to claim the RRC. This credit can also help eligible people whose EIP3 was less than the full amount, including those who welcomed a child in 2021.

• A deduction for gifts to charity: The majority of taxpayers who take the standard deduction can deduct eligible cash contributions they made during 2021. Married couples filing jointly can deduct up to $600 in cash donations and individual taxpayers can deduct up to $300 in donations. In addition, itemizers who make large cash donations often qualify to deduct the full amount in 2021.

See the fact sheet for more information.


February 14

The IRS reminds early filers that by law, the agency cannot issue EITC refunds before mid-February. The same rule applies to refunds that include the Additional Child Tax Credit (ACTC). This year, the ACTC is typically claimed by Americans abroad who did not have a main home in the United States for more than half of 2021. Normally, the mid-February restriction does not apply to the Refundable Child Tax Credit (RCTC) claimed by people who had a main home in the U.S., unless they also claim the EITC.


Child Tax Credit Opt Out

FAQs about the Child Tax Credit Opt Out


When is the deadline to unenroll?


You can opt out any time this year and not receive your monthly payments. You must opt out three days before the first Thursday of the month to not receive next month's payment.


Can I re-enroll?


You can't re-enroll if you are currently unenrolled. You will be able to opt back in starting in the late September.


June 25

Child Tax Credit Opt Out

Eligible families can now opt out from advance payments of the Child Tax Credit by using the IRS’s update portal. Remember, advance payments for the Child Tax Credit begin July 15.


Access the tool here.


Here's what you'll need to do:


1. Go to the new Child Tax Credit Update Portal and tap the Unenroll from Advance Payments button.

2. On the next page, sign in using your IRS account or your ID.me account. If you have neither, the page will walk you through setting up an ID.me account you just need a photo ID.

3. On the Child Tax Credit Update Portal, you can see your eligibility and unenroll from the monthly payments.

June 24

Child tax credit Portal

UPDATE: Eligible families can now unenroll from advance payments of the Child Tax Credit by using the IRS’s new update portal. Remember, advance payments for the Child Tax Credit begin July 15.


Access the tool here: https://bit.ly/3xJA3Ji

June 23

Tax Credits for Health Insurance

We are glad to let you know that there was a stimulus package passed that helps uninsured people get tax credits to pay for their health insurance. We help people get those credits every day. If you or someone you know needs health insurance and wants to apply for the credit, We'd love to help!

June 11

IRS Sends Letters to 36 Million Eligible families

Last Monday, 06/07/2021, the IRS announced that they started sending letters to more than 36 million families who may be eligible for the Child Tax Credit.


The maximum credit for children younger than 6 years old is $3600, and $3000 for those between 6 to 17 years old.


Half of the money will be sent to families in installment plans beginning July 15 and going through December - the payments are $300 per month for children younger than 6 and $250 per month for those aged 6-17, Families will get the remainder when they file their 2021 taxes next year.

June 8

2.8 Million refunds coming out this week!

Did you know that the IRS is sending more than 2.8 million refunds this week to taxpayers who paid taxes on unemployment compensation?


IRS's efforts to correct overpayments will greatly help taxpayers avoid having to file amendments. So far, 13 million taxpayers may be eligible for the adjustment. Payments will be sent either periodically or applied to taxes due or other debts. For others, there will be no change.

June 7

Here are 4 changes that you need to know about Child Tax Credit

1. The credit amounts will increase for many taxpayers.

2. The credit for qualifying children is fully refundable, which means that taxpayers can benefit from the credit even if they don't have earned income or don't owe any income taxes.

3. The credit will include children who turn age 17 in 2021.

4. Taxpayers may receive part of their credit in 2021 before filing their 2021 tax return.

June 4

5 More Facts For The Unemployment Tax Refund

1. Those who earned less than $150,000 in adjusted gross income are eligible for unemployment tax break.

2. The IRS started sending out refunds the week of May 10.

3. There are 2 phases of recalculation made by IRS:

- Those who are eligible for the up to $10,200 tax break.

- Those married-filing-jointly taxpayers who are eligible for the up to $20,400 tax break.

4. The IRS will send you a notice explaining the corrections within 30 days of when a correction is made.

5. The IRS can seize the refund to cover a past-due debt (e.g. unpaid federal or state taxes, child support).

June 1

Flood Season Is Here

You are required to have flood insurance if your home is in a flood zone area, even if it's just 1% chance of being flooded in a year. Texas, in particular is prone to floods. Almost every major city in Texas are at high risk of flooding. When plains and pastures are replaced with concrete roads, they can be put to flood-risk zones.


Talk to us about getting a flood policy in your coverage before it's too late!  

May 26

Child Tax Credit

Starting July 15, the enhanced Child Tax Credit payments will be released. Qualified families can get up to $300 a month for each kid. If you want to opt-out of the monthly payments and receive one check next year instead, you can do so by using the IRS portals at irs.gov

May 24

NATIONAL EMS WEEK!

Happy National EMS week! Because you provide selfless care that deserves extra credit, avail of this promo for medical front liners as you file with us. Get a 25% discount off of your tax prep! Valid from May 17-22, 2021 at participating locations and cannot be combined with any other offers. It's our way to show appreciation!

May 17-22

IRS Letters

Letters from the IRS about your stimulus checks are not junk mails. They're confirmations of your payments, the amount and how you were paid. This is your key to hunt down missing money if you believe that you were paid incorrectly. 


Make sure to inform IRS and USPS of your current mailing address! 

May 21

6 Facts about unemployment tax refund

-Returns are automatically recalculated by the IRS and checks are sent to qualified taxpayers.

-Checks were initially sent out last week and will continue until summer.

-Amendment is not needed.

-Refunds are sent as direct deposit if the taxpayer submitted bank information on their 2020 tax return. Otherwise it will be sent to your mailing address that the IRS has.

-Qualified taxpayers who received unemployment tax refunds will also be receiving a notice about the corrections made.

-Unemployment tax refunds cannot be tracked on official IRS portals or trackers.

May 19, 2021

Did you pay 2020 taxes on your unemployment benefits?

Here's an update: The IRS could automatically refund all or part of what you paid.


Unemployment checks received during the pandemic are not included as an income and cannot be taxed. A $10,200 unemployment tax break will be applied to qualified people. The first batch of refunds are expected to be received this month and will continue to be sent during summer, as tax returns are being processed.


Stay tuned for updates on unemployment tax refund!

May 17, 2021

Got Plans?

Here are the other White House plans to aid in the recovery of America:


1. At least $10,000 student loan forgiveness.

2. A possible 4th stimulus check.

3. $11 to $15 per hour minimum wage increase.

May 14, 2021

What does the White House plan for your family? 

The government plans to cover the following needs of American Families:


1. If Congress renews the program, expanded child tax credit would extend to 2025, with a purpose of reducing child poverty.

2. Free tuition for the first 2 years of community college. May include training programs outside community colleges.

3. Free pre-kindergarten education for 3- and 4-year-olds.

4. Child care made more affordable.

5. A broader paid family and medical leave.


Stay tuned for updates on stimulus packages!

May 12, 2021

Parents Must File Their Taxes by May 17 to Qualify For $3,000 Child Tax Credit

You could receive payments from the new $3,000 Child Tax Credit as soon as July as long as you file your taxes by May 17, even if you had no income to report.


Under the $1.9 trillion American Rescue Plan signed into law by President Joe Biden in March, families will receive $3,000 annual benefit per child ages 6 - 17 and $3,600 for children under the age 6 for the 2021 tax year.



May 10, 2021

Heads up for Next Season!

For tax year 2021, the child and dependent care tax credit has been increased to $4,000 for one child and $8,000 for two or more.


The credit is fully refundable, meaning you can get a refund regardless of your tax liability. Our tax experts are standing by to help, connect with us and set your appointment!

May 6, 2021

Child Care Help Is Here!

Thanks to the American Rescue Plan, parents can now receive as much as $300 for children 6 and below, and $250 for children 7-17 years old! Release of checks starts in July.

April 23, 2021

Plus Up

"Plus-up" money is an amount that the IRS finds it owes you apart from the released third stimulus payment. Find out more when you file or make amendments with a tax expert.

April 19, 2021

Taking care of your HEALTH brings more MONEY!

Here are reasons to receive more stimulus money:

- contribute more on your health care FSA without getting taxed.

- deduct medical expenses that exceed 7.5% of your AGI.

- The government will pay the entire COBRA premium from April 1 through September 30 for laid-off employees and family members, except if you have Medicare, left your job voluntarily or already qualified for a health insurance with your new employer before these dates.

- You may be eligible for new short-term health insurance subsidies.

April 9, 2021

Unemployment Tax Break in May!

IRS will start sending out refunds for $10,200 unemployment tax break in May! Taxpayers who filed in the early days of the tax season may need to file an amendment, though it is not required, to maximize the refund on $10,200 unemployment tax break.

April 8, 2021

Another batch of Stimmy coming your way!

Another batch of $1,400 stimulus checks were sent including the additional money of those who are eligible for more payment after processing their 2020 tax returns. This batch also includes those who filed their taxes in order to qualify for the stimulus money.


We're urging you to start filing NOW! Book your appointment with us and we’ll assist you in getting your missing stimmy!

April 7, 2021

Track Your Refunds!

Here are 2 official ways to track your refund status:

1. Use the IRS tool and enter all necessary information correctly to lead you to a page indicating the status of your refund.

2. Use the official IRS mobile app IRS2Go which gets updated every night with new refund status.

For tax questions and assistance, we got you.

April 3, 2021

Got Your PPE?

Personal protective equipment (PPE) to avoid Covid-19 can give you a tax break! Amounts paid for masks, hand sanitizers, and other personal protective equipment to prevent catching the virus are considered medical expenses. Under the tax code, you are eligible if these items were not reimbursed by your insurance and exceeded 7.5% on your adjusted gross income. Come and visit our Safe and Secured stores near you!

March 31, 2021

Got Senior Adults?

You may be eligible for a stimulus check! The new law includes a payment of up to $1,400 for all dependents, no matter their age! You can get a larger stimulus payment this round if you are supporting an adult dependent. Even if you are receiving Supplemental Security Income or Social Security Disability Insurance, you are eligible from the 1st - 3rd stimulus checks.


If you or a loved one belongs to this age group, we invite you to file your taxes with us NOW! Seniors (65 years old and above) can get 30% discount on your tax preparation till April 3, 2021.

March 26, 2021

Here's what you need to know about the 3rd Stimulus Package.

Here are all the updates that you need to know about the 3rd Stimulus Check! These include changes on key details such as income limits and adjustments on the eligibility requirements.


1. Stimulus Checks are now being credited. By March 17, IRS has sent out 90 million payments through direct deposits and mail. You can track your stimulus through the IRS online tool.


2. The 3rd Stimulus could be delayed for others. Problems with Stimulus Check delivery and calculation error could cause delays. Keep your information updated by filing NOW!


3. More dependents are qualified this time! The new bill opens qualification to around 13.5 million more dependents for $1,400 each. The bill expanded the definition of dependents, which means you can have more compared to the previous 2 stimmies!


4. There's an income limit for the 3rd Stimmy. The 3rd Stimulus Check comes with a $1,400 per person max. The legislation included eligibility rules to the bill to restrict the third stimulus to lower and middle-income households.


5. The IRS will use your 2019 or 2020 tax return. The IRS will base your total income from your most recent filed tax return. If you have new dependents this 2020 and haven't filed your taxes yet, FILE NOW to have all your information updated!


March 23, 2021

3rd Stimulus Package: ARE YOU READY?

The Senate passed a new version of the bill for a 3rd stimulus check. Up to $1400 per person is within your reach! Right now, it seems like Congress will meet its deadline for President Biden to sign the stimulus bill by March 14, 2021. FILE BEFORE THEN TO AVOID ANY POSSIBLE DELAYS ON YOUR REFUND!

March 9, 2021

3rd Stimulus Package Update!

COVID relief bill with 3rd stimulus check is ready for House Floor Vote on Friday. The package includes $1,400 direct checks to qualified Americans making less than $75,000 annually and an increase in the child tax credit. File your taxes now to avoid having delays on your refund once the stimulus arrives!

February 25, 2021

3rd Stimulus Package Update!

COVID relief bill with 3rd stimulus check is ready for House Floor Vote on Friday. The package includes $1,400 direct checks to qualified Americans making less than $75,000 annually and an increase in the child tax credit. File your taxes now to avoid having delays on your refund once the stimulus arrives!

February 25, 2021

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