Are you still waiting for a refund, stimulus, or reimbursement for overpaid taxes on unemployment income? You can check the status of your return if you input your details into the IRS tool.
Child tax credit
Starting in July, the IRS began sending out advance payments on the enhanced 2021 Child Tax Credit, as outlined in the American Rescue Plan. The payments are based on your most recent tax returns, and will be reconciled on your 2021 return. If you do not wish to receive the advance payments, there is a way to opt out.
Unemployment
If you received unemployment benefits in 2021, don't forget that is federally taxable income. Even if you are now reemployed, you will want to make sure you pay the estimated taxes due or adjust your tax withholding at your new job to account for that income. Unemployment rules and payments vary by state, so make sure to check the situation in your local area.
Withdrawals
If you took a COVID-related withdrawal from your retirement plan in 2020, the withdrawals up to $100,000 were not subject to the 10% early withdrawal penalty and the tax could be spread over 3 years. However, if you can pay back some or all of the money, the amount paid back would not be taxable, and it would also be able to continue to grow tax-deferred in your retirement account.
Required minimum distributions
Congress allowed people over the age of 72 to suspend taking required minimum distributions (RMDs) for 2020 as part of COVID-19 relief, but RMDs are back on for 2021. Everyone's RMD situation will be different, but if you don't take your required amount by December 31, you could face IRS penalties.