Washington, DC – The District of Columbia Office of Tax and Revenue (OTR) announced today that it will begin to accept and process Tax Year 2021 individual income tax returns on Monday, January 24, 2022. OTR is following the lead of the Internal Revenue Service.
As District taxpayers gather their documents and prepare for the filing season, OTR reminds them of several key changes:
What’s New and Changes:
- D-40 Individual Income and Standalone Schedule H Tax Return: Beginning with Tax Year 2021, taxpayers will have the option to file their individual income or standalone Schedule H tax return by logging into their MyTax.DC.gov account.
- DC Fillable Forms and Free File: OTR has retired its D-40 fillable form option and will no longer participate in DC Free File. However, taxpayers can now file their 2021 D-40 form and schedules at no cost via the MyTax.DC.gov portal.
- D-40ES, Individual Income Estimated Tax Booklet: OTR will no longer mail the Estimated Payment for individual income tax booklet (D-40ES). Returns and payments may be submitted via MyTax.DC.gov or electronically through a tax professional or software vendor. The form/coupon can also be downloaded from OTR’s website at otr.cfo.dc.gov under “Forms” and mailed to the address listed in the instructions.
- Standard Deduction Increased: The standard deduction has increased for Tax Year 2021 as follows:
- From $12,400 to $12,550 for single filers and married/registered domestic partners filing separately
- From $18,650 to $18,800 for head of household filers
- From $24,800 to $25,100 for married/registered domestic partners filing jointly and qualifying widow(er) with dependent child(ren) filers
- Additional Standard Deduction: If born before January 2, 1957, or blind, an additional standard deduction of $1,350 ($1,700 if single or head of household) is allowed – use Schedule S, Calculation G-1. The Schedule S, Calculation G-1 must be submitted with your return.
- Schedule H: The Homeowner and Renter Property Tax Credit amounts for Tax Year 2021 are:
- Property tax credit increases from $1,200 to $1,225
- Schedule H federal AGI eligibility threshold for under age 70 increases to $56,200
- Schedule H federal AGI eligibility threshold for age 70 and older increases to $76,700
- DC Earned Income Tax Credit (EITC) for Childless Workers: The formula for determining the DC EITC for childless workers has changed. A DC EITC Worksheet for Filers Without A Qualifying Child is included in the Individual Income Tax Forms and Instructions Booklet.
- Earned Income Tax Credit (EITC): The American Rescue Plan Act of 2021 (ARPA) includes changes to the Earned Income Tax Credit. For taxable years beginning January 1, 2021:
- Taxpayers whose qualifying children fail to meet certain requirements may now be eligible for the earned income tax credit.
- The earned income tax credit is now allowed in the case of separated spouses if certain requirements are met.
- Schedule U - Additional Miscellaneous Credit and Contributions
- DC Government Employee first-time home buyer credit is expired
- DC Low-Income Housing Tax Credits (LIHTC) are now available to entities/taxpayers investing in qualified projects located in the District. See instructions.
- Pre-Acquisition Disclosures: The Consumer Financial Protection Board (CFPB) has published its final Prepaid Account Rule, creating detailed consumer protections for prepaid accounts. For Tax Year 2021, if taxpayers elect to receive a refund using the US Bank ReliaCard™ or use a pre-paid card to make payments, they are required to review and acknowledge the Pre-Acquisition Disclosures (Short and Long Forms) prior to selecting the ReliaCard option as method for receiving a refund or using a pre-paid card when making a payment. Learn more here.
- Tax Returns Processing and Refunds: OTR’s enhanced security measures to safeguard taxpayers’ identities and to combat theft/tax refund fraud may result in longer processing times for some tax returns and associated refunds. The processing window for selected tax returns could be up to eight weeks.
Individual Income tax filing deadline: The filing deadline to submit Tax Year 2021 individual income tax returns or an extension to file and pay tax owed is Monday, April 18, 2022. OTR will be closed on Friday, April 15 in observance of Emancipation Day.