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Tax Corner

January 18, 2022 | Weekly Commentary

Fourth quarter estimated tax payments are due TODAY – January 18, 2022. 

1099 Tax Reminders
Once again, it is the time of year to think about your filing requirements as a small business owner, self-employed individual, or owner of rental property. If you operate for gain or profit, the IRS considers you to be engaged in a trade or business and therefore required to file certain information returns. Information related specifically to the Form 1099-MISC, Miscellaneous Income, and the Form 1099-NEC, Nonemployee Compensation, can be found at https://www.irs.gov/instructions/i1099mec.

Form 1099-NEC is due on or before January 31, 2022, using either paper or electronic filing procedures.

File Form 1099-MISC by February 28, 2022, if you file on paper, or March 31, 2022, if you file electronically.

The IRS operates a centralized call site to answer questions about reporting on Form 1099 and other information returns. If you have questions related to reporting on information returns, the IRS centralized call site can be reached at 866-455-7438. In addition, please feel free to contact our VNFA Tax Department at tax@valleynationalgroup.com or 610-868-9000.

Letter 6475
Individuals who did not qualify for a third Economic Impact Payment or got less than the full amount may be eligible to claim the Recovery Rebate Credit. However, they will need to know the total amount of their third Economic Impact Payments received to calculate their correct 2021 Recovery Rebate Credit amount when they file their 2021 tax return. The IRS announced that it would send Letter 6475 with the total amount of the third Economic Impact Payment received beginning in late January.