No matter what your goals are, I believe that preparation is key to finding success. For our clients, it means we provide them with exclusive resources in our expansive knowledge center to help them make informed decisions for their portfolios.
The same goes for taxes. Tax Day is less than a month away—and as with anything else, I like to know as much as possible about what may have changed in the last year and what to expect this time around. Here’s what the experts are saying.
No tax deadline extension has been announced for 2022—but taxes aren’t due on April 15.
In response to the global pandemic, deadlines for filing taxes had previously been extended. In 2020, for example, the deadline for filing taxes was pushed from April 15, 2020, to July 15, 2020. As of this writing, this won’t be the case for 2022.
However, you won’t have to file your 2021 taxes by the usual date of April 15 either. This year, the tax deadline for most Americans is set for April 18, 2022. According to the IRS, this is because “by law, Washington, D.C., holidays impact tax deadlines for everyone in the same way federal holidays do. The due date is April 18, instead of April 15, because of the Emancipation Day holiday in the District of Columbia for everyone except taxpayers who live in Maine or Massachusetts.”
Why the two exceptions? Because taxpayers living in Maine and Massachusetts get one extra day to file their taxes because of those states’ observance of Patriots’ Day. For those residents, the submission deadline is April 19, 2022. The IRS further states that those requesting extensions will have until October 17, 2022, to file. However, if you still owe taxes for the 2021 tax year, those must be paid when you file for an extension—you don’t have until October 17 to pay.
As always, planning and doing your research will help you make the most informed decisions. The IRS even has a webpage dedicated to helping you get a jump-start on your taxes, which you can find here.
If you don’t receive your tax refund right away, it may be due to a backlog.
Believe me, I understand how frustrating waiting can be. But if you file your taxes by mail rather than online, you may be in for a long wait this year.
On February 17, 2022, The Washington Post reported that nearly 90% of taxpayers file their taxes online—but tens of millions of taxpayers do not, and it’s causing significant backups. According to The Post, “[The IRS] has a backlog of 24 million tax returns, with some refunds held up for 10 months or more.”
Keeping an eye on the horizon and knowing when to expect changes in your financial situation can be useful strategies. It’s one of the reasons Gold News & Views exists—to examine the latest headlines and help you stay informed on topics that may impact your portfolio.
As with previous years, some tax policies have changed for the 2021 tax year.
Each year, tax policies change based on inflation and other data. 2021 was no different, and there are a few updates you may wish to know about.
To start, the standard deduction increased by $150 for those filing singly (now at $12,550) and by $300 for married couples filing jointly (now at $25,100). For heads of household, the standard deduction also increased by $150, to $18,800.
According to a February 22, 2022, article by CNET, you might want to take into consideration several other changes. For example, income tax brackets have been raised, forgiven student loans are no longer subject to taxes, and the tax break for those who received unemployment benefits has ended. In addition, the charitable donation deduction for married couples, the earned income tax credit, the child tax credit, health flexible spending contributions, and tax-deductible medical expenses have all increased.
For those reaching retirement age, CNET also notes that required minimum distributions (RMDs) were to be taken once again in 2021 after being suspended in 2020.
This is by no means a complete list of changes—instead, think of it as a sign that if you file your own taxes, you may have some additional research to do. And if you utilize a CPA or other tax preparer, it still never hurts to be as informed about your financial situation as possible.
There’s still time to open or contribute to a precious metals IRA for the 2021 tax year.
Lastly, a quick reminder that you can still make IRA contributions for the 2021 year until April 15, 2022. So if you act quickly, you may still be able to open a self-directed precious metals IRA and contribute funds for the 2021 tax year—then double that contribution to cover the 2022 tax year. It’s an efficient way to start reaping the benefits of holding physical precious metals in your retirement portfolio and tackle two years of contributions at the same time.
In all things, it can help to do your research and prepare as far ahead as possible. Even as the world continues to change around us, having a solid foundation of a plan can save you time and energy and give you peace of mind.
It’s the very same reason many portfolio holders enjoy owning physical precious metals: peace of mind from knowing you’re prepared for the future is something no one can put a price tag on.