January 18, 2021
Please download any and all helpful worksheets from the links on our home page.
2020 has been a difficult year.
The coronavirus has kept us isolated, children were home from school much of the year, and many people were not working. But, thankfully, we seem to be on our way to the end!
Stimulus payments (Recovery Rebate, refundable tax credit) that you may have received will not be taxable. If you haven't received one (or more), but are eligible, you may be able to claim it on your 2020 tax returns. Be sure to file your 2020 tax returns on time in order to take advantage of all changes.
The CARES ACT allows the deduction of $300 in charitable contributions even if you do not itemize your deductions. If you do itemize, this law lifts the 60% of adjusted gross income limitation on contributions. Individuals can deduct 100% of their donations up to their adjusted gross income.
The contribution limits for employee's retirement plans has been increased
by $500.00 for 2020 taxes. This includes 401(k)s, 403(b)s, most 457 plans, and the federal government's Thrift Savings Plan (TSP).
Required minimum distributions for IRAs and 401(k)s are waived for 2020. If you have already received an RMD in 2020, you can roll it back into the plan within 60 days and defer paying taxes on the amount.
If you qualified for a coronavirus-related distribution (CRD) from your retirement fund in 2020, it will not incur the 10% early-withdrawal penalty. This is taxable, but taxes can be spread over three years. If paid back within three years, this will be considered a rollover, and not taxable.
The Qualified Business Income deduction allows owners of "pass-through" entities (including sole proprietorships, S-corporations and partnerships) to deduct up to 20% of their qualified business income.
We know you're busy...
Feel free to e-mail, fax or mail your tax information.
We must have all your tax information by
March 20th, in order to guarantee an
April 15th filing.
The IRS encourages:
Electronic filing of tax returns, direct deposit of refunds, and direct withdrawals of amounts owed. This eliminates lost returns, reduces errors, and speeds up refunds. To have your return E-filed and your refunds direct deposited
into your bank account we'll need the following information:
- (1) name of bank
- (2) routing number
- (3) your account
STAY SAFE AND HAVE A BEAUTIFUL 2021!