May 1: Happy May Day!
Or is it
mayday?
via GIPHY
May Day globally is a time for celebrating workers' contributions. Mayday, as one word, is a universal distress signal. With the coronavirus pandemic not quite under total control,
both meanings continue to apply as we head into 2021's fifth month.
More people are being vaccinated, and some businesses are open again. But many workers are still out of jobs and dealing with continuing COVID-19 financial stress.
The
third COVID economic impact payment provides some relief. And President Joe Biden, just wrapping up the first 100 days of his administration, is proposing some tax law changes that could help. Those, however, are down the road a-ways. So let's look at tax tasks that are on the books and need attention this month, like the delayed
Tax Day 2021 coming up on May 17. Don't worry. I'll remind you when we get even closer to the filing deadline.
May 5: ¡
Feliz Cinco de Mayo!
2021 definitely is a year when we can use a little celebration, even if it's a Mexican holiday that tends to spur more festivities here north of the border. So raise that margarita during your fiesta, either at a still COVID-conscious real-life party or virtually. Your state tax collector will thank you, since during the pandemic, sin taxes were a lone revenue bright spot for many states.
May 9: Happy Mother's Day!
Now that you and your mom both have been vaccinated, make up for last year's missed Mother's Day. All the love and best to every mom, from the new ones just discovering the joys, tax and otherwise, of new parenthood to those gracefully maneuvering their Golden Years while getting some tax-advantaged help from their families.
May 10: More restaurants across the country are opening up table service. Folks who are so done with coronavirus take-out and deliver are happy to be served in person again. And those servers are especially thrilled to see the diners, especially the ones who are good tippers. If you're comfortable going out to eat, be sure to reward your server. The same tipping reminder applies for food delivery people if you're still self-isolating.
If a tip isn't included in your restaurant check or food delivery charge, click the image above to calculate how much to tip.
Those of you getting the tips, remember that your
tips are taxable income. If you got such added financial thanks that came to a total of at least $20 last month, whether as a waiter/waitress or hair stylist or valet or whatever job where gratuities are common, you need to account for them today. Report your tips to your employer on
Form 4070.
May 10: The deadline to file your tax return is just a week away. If you're still working on or finishing up your 2020 Form 1040, check out the filing pieces of advice in the ol blog's monthly tax tips pages. You'll find links near the top of this column, right under the Tax Tip yellow No. 2 pencil tip image.
May 14: The last weekend before Tax Day 2021 is here. Time to finally finish that return. If you haven't already, find all those tax documents that you shoved in a drawer when you learned nothing would be due in April. For most of us, claiming the
standard deduction is the way to go. You'll need just your
W-2 and possibly some
1099 forms. If you still itemize, this
checklist details the additional data you'll need to file.
May 17: It's finally Tax Day 2021. Stop cheering (or crying) and get your return on its way to the Internal Revenue Service.
.
You've got until midnight tonight (your local time) to electronically file your 1040. You can do that
and possibly save some money by using Free File, the online no-cost tax preparation and e-filing partnership between the IRS and Free File Alliance.
The official
Free File site at IRS.gov this season offers
nine participating tax software options if your adjusted gross income is $72,000 or less, regardless of filing status. If you make too much to use the online software, look into using Free File's fillable forms.
And if you just can't finish your 1040 by today, send the IRS instead
Form 4868 to get until Oct. 15 to file your return. Remember though, you must pay any due tax with your extension request.
May 21: Whew! Now that filing is done (except for us procrastinators on extension) and you've had a few days to get settled, it's time to take care of your
tax records. You need to hang onto some
filing paperwork just in case the IRS has follow-up questions.
May 25: Part of the emergence from COVID-19 lockdown is the return of summer camps. If you were able to get your kiddos into a day camp, be sure to hang on to the receipts. The Child and Dependent Care Tax Credit has been
expanded for the 2021 tax year, making it even more valuable when you file your taxes next year.
May 29-31: Happy Memorial Day long weekend! If you and yours are vaccinated and taking advantage of that to welcome the unofficial beginning of summer with a road trip, enjoy. After months of lockdown, a change of scenery definitely will be nice. And if you have a second home that you're leasing to other gotta-get-away travelers, stay on top of all the short-term rental rules, at both the possibly
tax-free federal income and more-local
occupancy tax levels.
Small Business Tax Calendar: Important
filing, deposit and record keeping dates throughout the year that your company needs to know. You can get more tax calendar information at the IRS'
online calendar page and view the full year's important business and individual tax dates in
IRS Pub. 509.
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