First Time Filing

[madmohr1095]

This is my first time filing and doing everything myself. I have always had a family friend or my aunt just do my taxes for me. However, I moved out of state and my aunt retired. So I am having to file for 2021 and 2022, and I have no clue what I am doing. I have put this off for so long because it honestly just doesn't make any sense to me, even though I have 2 business degrees (BSBA and MIB). A few questions:

1. Is it bad that I am just now filing for 2021? What are the potential consequences for filing late?

2. I have made donations to charities, totaling about $500, that are tax-deductible. What does this really mean and where do I report these when filing?

3. I have a 1095-C from my employer for my insurance. Where do I report this or does it need to be reported?

[evelynm]

Here is a link to a great checklist:   https://blog.turbotax.intuit.com/life/tax-documents-checklist-how-to-win-big-this-tax-season-53328/

Just for some added clarification - good luck in your filing.

[DoninGA · Accepted solution]

1. Is it bad that I am just now filing for 2021? What are the potential consequences for filing late?

If you have taxes owed on the 2021 tax return you will need to pay those taxes ASAP since penalties and interest will accrue until the taxes are paid.  The IRS will send you a bill in the mail for the penalties and interest owed.

If you have a tax refund on the 2021 tax return there are no penalties for filing after the due date of the 2021 tax return.

2. I have made donations to charities, totaling about $500, that are tax-deductible. What does this really mean and where do I report these when filing?

Donations to a charity are only reported on a Schedule A for itemized deductions.  If the total of all your itemized deductions are less than the Standard Deduction for your filing status then only the Standard Deduction will be used on your tax return.

3. I have a 1095-C from my employer for my insurance. Where do I report this or does it need to be reported?

A Form 1095-C is not reported on a tax return.

Standard deductions for 2022

Single - $12,950 add $1,750 if age 65 or older
Married Filing Separately - $12,950 add $1,400 if age 65 or older
Married Filing Jointly - $25,900 add $1,400 for each spouse age 65 or older
Head of Household - $19,400 add $1,750 if age 65 or older

[xmasbaby0]

1.   Is it bad that I am just now filing for 2021? What are the potential consequences for filing late?

If you are getting a refund, there is not a penalty for filing past the deadline.  If you owe taxes, the interest/penalties will be calculated by the IRS based on how much you owe and when they receive your return and payment. The IRS will bill you for this; it will not be calculated by TurboTax.

You cannot use online TurboTax for 2021.   You need the CD/download and you must file 2021 by mail.

2.   I have made donations to charities, totaling about $500, that are tax-deductible. What does this really mean and where do I report these when filing?    

A charitable donation almost never changes your tax due or refund all by itself.  First, your donation does not count "dollar for dollar"--it is calculated by a percentage based on your tax bracket.  You need a LOT of other itemized deductions like mortgage interest or property taxes, medical expense, etc. to itemize and exceed your standard deduction.

3  I have a 1095-C from my employer for my insurance. Where do I report this or does it need to be reported?

You do not enter a 1095C.   When it asks if you have a 1095A, just click NO, and move on.  You only have to enter health insurance if you had marketplace insurance "Obamacare"  from healthcare.gov

The current online software can only be used for a 2022 return, and will be available until October 16, 2023.  After that, online preparation and e-filing close down.   If you miss that deadline you need to use downloaded software and mail your 2022 return.

Each tax year has to be filed separately using the forms for the specific tax year.  They cannot be combined in any way--do not even put them in the same envelope when you mail them.  Software for past years is available back to 2019.  Any earlier years can only be prepared on paper forms by hand--and those refunds have been forfeited now.

The current online program can only be used for a 2022 return--no other year.  And if you did not file a 2021 return you will have trouble e-filing 2022.  When it asks for your 2021 AGI try using zero.  If zero does not work then you have to print, sign and mail 2022

Online preparation and e-filing for 2019 and 2020 and 2021 is permanently closed.

To file a return for a prior tax year

 If you need to prepare a return for 2019, 2020 or 2021 you can purchase and download desktop software to do it, then print, sign,  and mail the return(s)

https://turbotax.intuit.com/personal-taxes/past-years-products/

You may also want to explore purchasing the software from various retailers such as Amazon, Costco, Best Buy, Walmart, Sam’s, etc.

Remember to prepare your state return as well—if you live in a state that has a state income tax.

https://ttlc.intuit.com/community/state-taxes/help/how-do-i-contact-my-state-department-of-revenue/0... 

When you mail a tax return, you need to attach any documents showing tax withheld, such as your W-2’s or any 1099’s.  Use a mailing service that will track it, such as UPS or certified mail so you will know the IRS/state received the return.

Federal and state returns must be in separate envelopes and they are mailed to different addresses.  Read the mailing instructions that print with your tax return carefully so you mail them to the right addresses.

Note:  The desktop software you need to prepare the prior year return must be installed/downloaded to a full PC or Mac.  It cannot be used on a mobile device.

[evelynm]

Additional information for tax year 2021 you can deduct up to $300 of qualified charitable cash contributions ($600 if married filing a joint tax return) from your adjusted gross income without itemizing deductions.

[Loretta P]

Hello @madmohr1095 ,

I can understand being uncertain when filing your return by yourself the first time.  The IRS can assess a penalty and interest for late filing.  You can find more information on penalties and how to avoid or reduce them here:  

Guide to IRS Tax Penalties - How to Avoid or Reduce Them 

The standard deduction for 2021 was $12,550 and for 2022 it is $12,950.  If you itemized deductions are a larger amount than the standard deduction it usually is better to itemize.  

Standard Deduction vs. Itemized Deductions: Which Is Better? 

The form 1095-C is the Affordable Care Act health insurance reporting.  For 2021 & 2022 you no longer need to report that on your return.  Only the form 1095-A for health insurance purchased through the market place needs to be reported.

What is From 1095-C: Employer-Provided Health Insurance Offer and Coverage 

Do I need to enter my 1095-B and 1095-C? 

[rschule1]

Hi There:

1. Is it bad that I am just now filing for 2021? What are the potential consequences for filing late?  IF YOU OWE TAX THEN YOU WILL BE SUBJECT TO LATE FILING AND FAILURE TO PAY PENALTIES AND INTEREST WHICH COULD BE SUBSTANTIAL. I'D ROUGHLY ESTIMATE SUCH FOR 2021 (PENALTIES AND INTEREST) TO BE APPROXIMATELY 45% OF TAX DUE (ROUGH ESTIMATE). IF YOU DO NOT OWE THEN THERE ARE NO PENALTIES OR INTEREST.

2. I have made donations to charities, totaling about $500, that are tax-deductible. What does this really mean and where do I report these when filing?  WITHOUT ITEMIZING A SINGLE FILER CAN DEDUCT $300 IN CHARITABLE DEDUCTIONS FOR 2021.

3. I have a 1095-C from my employer for my insurance. Where do I report this or does it need to be reported? NO ITDOES NOT NEED TO BE REPRTED SINCE IT IS PRIVATE INSURANCE,