Everyone’s least favorite holiday is here yet again.
“Nothing is certain but death and taxes.” It is here: tax day 2021.
While it’s certain that you must pay taxes, there’s plenty of uncertainty about filing them.
With the weather warming and a return to normalcy appearing closer every day, you might look forward to filing your taxes as much as your next dentist’s appointment.
But, paying your taxes on time can save you from the plethora of problems that come with the alternative.
Below, we’ll answer some of the basics to help you through Tax Day 2021.
Tax Day 2021?
In 2021, Tax Day is Monday, May 17th.
Typically held every year on April 15th, it was delayed to May 17th due to the backlog of millions of unprocessed tax returns. Last year, it was delayed until July 15th as a result of COVID-19 pandemic complications.
What is Tax Day?
In the United States, Tax Day is the last day in which income tax returns can be submitted to the federal government before a late penalty is applied. If you do not pay taxes on time, a late penalty of 5% to 25% of your total taxes owed is applied each month your taxes are late.
Those who do not file or pay their taxes open themselves up for the government to garnish wages, loss of privileges, visits from the IRS, or potentially prosecution.
With severe risks and pesky penalties, the best thing advice we can offer is to pay your taxes and pay them on time.
As an Amazon seller, what do I need to file taxes?
You’ll need your 1099-K form and likely, an accountant or tax expert.
A 1099-K form is used to report payments received through reportable payment card transactions and/or settlement of third-party payment network transactions. If you’re an Amazon seller who totaled at least $20,000 in total sales and 200 individual transactions through Amazon. Both of those thresholds must be met to receive a 1099-K.
Sellers can find their 1099-K by visiting the Tax Document Library within the Reports section within Seller Central.
Wait, why do I need an accountant for tax day 2021?
The fee for an accountant or tax expert can be a dissuading point that encourages you to file your own taxes. However, the fee oftentimes pays for itself and saves you the time and stress of filing taxes near the deadline.
Additionally, there may be new options to claim items not covered in typical years. With more employees working from home, plenty of work from home deductibles exist that you may not be aware of. By delegating taxes to an expert, you can trust that you won’t leave money on the table or make potentially costful mistakes if audited.
In Conclusion
Overall, the act of filing taxes and paying money isn’t anyone’s idea of fun. But they help pay for the many programs that exist in our society.
Best of luck filing your taxes! After this, you won’t have to worry about it for nearly another year.
Additional resources:
Podcast: Tax hacks for Amazon sellers: a roadmap to financial success
Partnership: Accounting Services for Amazon Sellers
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