It's time for another tax year! What a year 2020 has been! As we prepare for the 2020 filing season, we want to give you a few last-minute tax reminders and some heads up on procedures for this years’ tax season.
If you haven't done so already, please make sure that you make an appointment with us so we can help you with your tax returns. There is an information form attached below that will help make your taxes go a lot smoother.
We look forward to hearing from you soon and doing your 2020 taxes!
MAKE CASH CHARITABLE CONTRIBUTIONS BY DECEMBER 31
The CARES Act (and the new Stimulus Package noted below) allow for a deduction above and beyond the standard deduction for those taxpayers who do not itemize their deductions. This added deduction is $300 for single filers and $600 for Married Filing Joint filers. The contribution has to be made by December 31, so plan accordingly!
ECONOMIC IMPACT PAYMENTS (STIMULUS CHECKS)
he CARES Act set up two (2) stimulus payments to taxpayers of up to $1,200 per adult and $500 per child and with the second stimulus payment of $600 per adult and $600 per child. These payments will not be included in your taxable income for 2020, but instead were an advance payment of a tax credit on your 2020 tax return. The IRS used either your 2019 or 2018 income to calculate the advance payment. Your actual 2020 income will be used to calculate the true credit you are eligible for. If you received less than you were eligible to receive, you will receive a credit for the remainder of the amount you were eligible to receive on your 2020 tax return. If you happened to receive more from the IRS than you were eligible for, you will not have to repay the excess. Since we will be required to reconcile the credit you are eligible for against the advanced payments you received, we will need to know the advance payment when you provide us your 2020 tax information.
TAX IDENTITY THEFT
We want to remind you that tax identity theft is a significant and growing threat. Unfortunately, it can take many forms. Be cautious if you:
Receive a notice or letter from the IRS regarding a tax return, tax bill or income that doesn’t apply to you. It’s possible someone filed a false return using your Social Security number.
Get an unsolicited phone call, email or other form of communication asking for your bank account number, Social Security number or other financial or personal details.
Receive a robocall insisting you call back and settle your tax bill.
THINGS THE IRS WILL NEVER DO
Call to demand immediate payment over the phone.
Call about taxes owed without previously having mailed you a tax notice.
Threaten to immediately bring in local police to have you arrested for not paying.
Demand that you pay taxes without giving you the opportunity to question or appeal.
Ask for credit or debit card numbers over the phone.
Contact you using email, text or other social media channels.
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