A Membership Company You Can Count On

Prosperity Benefit Services offers a competitive membership program that enables individuals to streamline their financial lifestyle.

Whether you need help preparing your taxes, getting a financial consultation, or assistance recertifying your income-driven repayment plan, Prosperity Benefit Services will empower you to reach your financial goals.

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2021 Tax Filing Updates

The IRS announced on January 15, 2021 that the tax season will officially begin on February 12, 2021, that’s when the tax agency will begin accepting and also processing the 2020 tax year returns.

The reason February 12, 2021 was the selected start date for individual tax return filers is to allow the IRS time to do work out the kinks on the new programming to their systems following December 27 tax law changes. These changes were due to the second round of Economic Impact Payments and other benefits.

  • January 15. IRS Free File Opens. You can start filing your returns through Free File partners; keep in mind that your tax returns will be transmitted to the IRS until February 12. Tax software companies will also accept tax filings in advance.
  • January 29. Earned Income Tax Credit (EITC) Awareness Day to raise awareness of valuable tax credits will be available to many people which includes the option to use prior-year income to qualify.
  • February 12. The IRS will begin the 2021 tax season. Individual tax returns will begin to be accepted and will begin processing.
  • February 22. The IRS is projecting that the IRS.gov Where’s My Refund Tool will be updated for those claiming EITC and ACTC, also referred to as PATH Act returns.
  • First week of March. Tax refunds will begin to reach those who claim EITC and ACTC (PATH Act returns) for people who file electronically with direct deposit and have no issues with their tax returns.
  • April 15. Deadline for filing 2020 tax returns.
  • May 17. Extended deadline for filing 2020 tax returns.
  • October 15. Deadline to file for anyone who is requesting an extension on their 2020 tax returns.
  • File electronically with the direct deposit as a preferred method for the quickest refunds.
  • Check IRS.gov to receive the latest tax information, including the latest on Economic Impact Payments. These tools make it easier for everything and avoids the necessity to call the IRS.
  • If you are eligible for stimulus payments, it is recommended that you carefully read all the guidelines for the Recovery Rebate Credit. Most received Economic Impact Payments automatically but anyone who received the max amount does not need to include any information about their payments when they file their returns. If you did not receive a payment or only received a partial payment you may be eligible to claim the Recovery Rebate Credit when you file your 2020 tax return. Tax preparation software, even IRS free File, will help you figure the amount.
  • Advance stimulus payments received separately will not be taxable, and they do not reduce your refund when filing in 2021.

For more information please feel free to visit the IRS website.

The American Rescue Plan enacted on March 11, 2021, allows for people with an adjusted gross income (AGI) of less than $150,000.00 who received unemployment compensation of up to $10,200 in 2020 to not pay any tax on that income. Any amount over $10,200 is still taxable. If you are married, each spouse wouldn’t have to pay any tax on $10,200.

Unfortunately, anyone who has a modified AGI of $150,000 or more can’t exclude any unemployment compensation. For more detailed information please click here.

Who Qualifies

Congress increased the child tax credit for 2021 only to $3,000 for children ages 6 to 17 and $3,600 for children under age 6. Individuals earning less than $75,000 and married couples making less than $150,000 are eligible for the increased child tax credit.

If families earn more than the qualifying amounts, they will still be eligible for the regular $2,000 credit for their children if their income level is below $200,000 for individuals and $400,000 for married couples.

How it works

Families are expected to receive a monthly payment of $250 to $300 per child instead of the annual lump sum. Half of the credit will begin to be paid out by July 15. The IRS will continue to deliver monthly payments on the 15th of each month through December 2021.

The remaining half will be a credit toward next year’s taxes. If any amount is left after covering taxes will be paid directly.

Here’s a quick example:

A family with a 12-year-old and a 5-year-old would be eligible for a $6,600 credit if they earn under $150,000. They would receive a credit of $550/month through December, and then $3,300 when they file their taxes in 2022.

Calculator

Feel free to check out this calculator from Omni to check how much money you can expect to receive.

Perks of being a member

Your membership offers more than just services, you will be part of the Prosperity family.

  • Never miss a deadline to recertify your income-driven repayment plan

  • Overcome the burden of back taxes with a simple phone consultation.

  • Eligible members will qualify for a free tax preparation or will receive a discounted rate.

  • Plan your financial future with one of our advisors and start achieving your investment goals.

  • Accredited by the BBB!

Prosperity Benefit Services

Prosperity aims to provide the best service to all of our members.

Membership Services

Tax Preparation Service

Members receive a free tax preparation per year if eligibility is met.

Tax Debt Resolution

We offer a consultation that can assist you with tax-related issues.

Recertification Assistance

You will receive assistance each year ensuring you don’t miss a recertification.

Forbearance & Deferment

We can assist you with a forbearance or deferment on your student loans.

Credit Report Analysis

This provides helpful ways to improve and maintain a good credit report/score.

Repayment Plan Change

We can assist you with the change of your repayment plan of your student loans.

Online Home Appraisal

Members receive a free tax preparation per year if eligibility is met.

Financial Profile Analysis

Members receive a free tax preparation per year if eligibility is met.

Blog Articles

Here are some of the facts making an impact in our financial lives

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of people in a Income-Drive Repayment Plan missed the deadline to recertify
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consumers have been victims of identity theft and fraud reports in the past year
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taxpayers fail to file their income tax return each year (on average)
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is the starting price for an appraisal on a multi-family building

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