The events of 2021 didn’t always play out as expected. Now, as the income tax filing deadline approaches, recent life changes may bring a new wave of surprises for U.S. taxpayers.
As the income tax filing deadline approaches, taxpayers will be facing unexpected tax situations brought about by the turbulent events of last year.
If your income changed, or if you made money in the stock and cryptocurrency boom, you may find a larger-than-usual tax bill. If you welcomed a new child or had major medical expenses, you might qualify for new breaks. If you have people working for you, you’ll be responsible for sending tax forms to contractors or employees. People working for themselves can also manage their tax liability by carefully accounting for both their income and their expenses.
If you bought and sold investments for the first time in 2021, you’ll soon get a crash course on capital gains taxes. You’ll have to gather records of your gains and losses. You’ll also want to distinguish between long-term capital gains and short-termIf you bought or sold stock, your brokerage will send you a tax form detailing your activity. Cryptocurrency exchanges, however, are not yet required to do so.
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