2021 Tax Year Guide

This is for tax year 2021 (and filed in April 2022), click here for 2020's guide.

This is a companion discussion topic for the original entry at https://articles.investorcommunity.org/2021-tax-year-guide/

Awesome! Thanks for posting. I wonder what the best tax option is? Doing it yourself with Turbo Tax of by a professional?

For personal taxes I firmly believe in doing it yourself. Not only is it cheaper, but helps you understand the mechanics of how taxes impact you so (hopefully) you can be as tax efficient as possible.

Now if you have a lot of investment properties and/or other complicated isssues… a tax professional could be useful, but should be additive and not a replacement.

Agreed. Another positive of a tax professional is they provide a buffer between you and the IRS in the event of a mistake.

Not really - you still pay the penalty and do some work. Most reputable places will handle the administrative burden granted… but with the ease of tax software and the reduced number of exemptions/deductions since 2018 it really isn’t necessary.

The exception would obviously be if you owned a business or had your own private office - in which case they aren’t really “your” taxes.