tax guide

It is always recommended to consult with a qualified tax or financial professional about your specific situation, and before making any short-term or long-term changes to your financial or tax strategy.

tax brackets

Tax brackets are: 10%, 12%, 22%, 24%, 32%, 35%, and 37%.

Tax brackets and corresponding income ranges*:

Note: These rates are scheduled to expire in 2025 unless Congress acts to make them permanent. Exemptions also changed under the new tax code.

Overview of standard deductions*:

key dates

  • 2021 Individual Tax Returns Due: Most taxpayers have until April 18 to file tax returns.*
  • Individual Tax Return Extension Form Due: If you can’t file your taxes on time, file your request for an extension by April 18 to push your deadline back to October 17, 2022.
  • Last Day to Make a 2021 IRA Contribution: If you haven’t already contributed fully to your retirement account for 2021, April 18 is your last chance to fund a Traditional IRA or a Roth IRA; however, if you received a filing extension, you have until October 17 to contribute to a Keogh or SEP plan.
  • 1st Quarter 2022 Estimated Tax Payment Due: Pay your first estimated tax payment for 2022 by April 18.
  • Second Quarter Estimated Tax Payment Due: Pay your second estimated tax payment for 2022 by June 15.
  • Third Quarter Estimated Tax Payment Due: Pay your third estimated tax payment for 2022 by September 15.
  • Extended Individual Tax Returns Due: If you received an extension, you have until October 17 to file your 2021 tax return.
  • Fourth Quarter 2021 Estimated Tax Payment Due: If you are self-employed or have other fourth-quarter income that requires you to pay quarterly estimated taxes, postmark this payment by January 18, 2023.

get a check up:

As a starter, the IRS urges taxpayers to conduct paycheck checkups. The agency provides tools and resources to help you calculate the correct amount to have withdrawn from your paycheck. The calculator is designed to help you determine if your employer is withholding adequate amounts from your paycheck.

This tool leads you through various screens that require you to enter requested numbers into boxes and looks similar to a tax-filing form. Once the calculator generates the estimated taxes, which you’ll either ow or be refunded, it offers suggestions on how to adjust your withholding amount or request to get additional money withheld from your check.

The calculator is not a replacement for real-life advice, so please make sure to consult a professional before modifying your tax strategy. Advice may include changing the number of allowances you’re claiming (line 5) or requesting your employer withhold additional money (line 6). Taxpayers who receive pension income may use Form W-4P.* Once completed, send the form to your payer if you’re adjusting or making changes.

If the calculator shows that you are expected to owe taxes at the end of the year, you might consider filing a new Form W-4, Employee’s Withholding Allowing Certificate.* The IRS provided calculator designed to give feedback based on certain assumptions. It is not intended to give specific tax, legal, or accounting advice.

What do you need to use the calculator?

To generate a calculation, the IRS recommends you have these documents:

  • A recent paystub
  • A recent income tax return
  • A copy of a completed Form 1040, which will help you estimate your income

The calculator will not request you provide personal or private information. It will, however, ask you the number of children you expect to claim for the Child Tax Credit and Earned Income Tax Credit.

Taxpayers with more complex tax issues may follow the instructions in Publication 505, Tax Withholding and Estimated Tax.

Tax Withholding Estimator

other things to know:

You can claim losses only if they exceed capital gains. You’re allowed to claim the difference up to $3,000 per year if you’re married filing jointly, or $1,500 if you’re filing separate returns. Net losses that exceed $3,000 can be the carried over into future years.*

 

You can claim losses only if they exceed capital gains. You’re allowed to claim the difference up to $3,000 per year if you’re married filing jointly, or $1,500 if you’re filing separate returns. Net losses that exceed $3,000 can be the carried over into future years.*

Find a place to store your tax documents until it’s time to prepare of file. If you have access to a financial planning tool through your advisor, find out if you have access to a secure, digital vault. This is a great place to securely store financial documents and alleviate concerns as deadlines approach.

 

If you have your documents to prior-year returns stored on your computer, make sure you back them up on a thumb drive or other device or system in case your computer is hacked or stolen.

The IRS provides recommended timelines for retaining financial documents.*

  1. You should keep your tax records for three years if item number 4 (below) does not apply to you.
  2. You should keep records for three years from your original filing date of your return or two years from the date you paid your taxes. Select whichever is the later date. This is if you claimed a credit or refund after you filed your return.
  3. You should keep your records for seven years if you claimed a loss from worthless securities or a bad-debt deduction.
  4. You should keep your records for six years if you failed to report income that you should have, and the income was more than 25% of the gross income listed on your return.
  5. You should keep employment tax records for at least four years after the due date on the taxes or after you paid your taxes. Select whichever is later.

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Disclosure

Investment advisory services are offered through Trek Financial, LLC., an SEC Registered Investment Adviser. Information presented is for educational purposes only. It should not be considered specific investment advice, does not take into consideration your specific situation, and does not intend to make an offer or solicitation for the sale or purchase of any securities or investment strategies. Investments involve risk and are not guaranteed. Be sure to consult with a qualified financial adviser and/or tax professional before implementing any strategy discussed herein. © Copyright 2021 Trek Financial. All Rights Reserved.

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