Goodbye 2020, Hello Tax Prep Season
Dec 22, 2020
Join us in bidding farewell to the year 2020 as we enjoy the holidays and prepare to usher in a better year ahead. While 2020 was an unprecedented year in so many ways, it also led to some interesting one-time adaptations to the tax law.
As you prepare to file your taxes, we wanted to make you aware of some provisions unique to 2020 that may positively impact your 2020 tax return:
- Recovery Rebate Credit – May be available if you did not receive an Economic Impact Payment
- $300 charitable deduction available even if you do not itemize
- Charitable deduction increased to 100% of income
- Sick Leave & Family Medical Leave credit available to the self-employed who could not work due to personal or family illness, childcare needs, COVID-19 related industry shutdowns
- Hardship distributions from 401(k) taxed over 3 years
- Suspension of Required Minimum Distributions (RMD) for 2020
As your tax documents come in, we recommend you prepare for the 2020 tax season by using the Shoebox Method. Toss those forms in a shoebox, use a file folder if you prefer, or go digital and drag your statement PDFs into a folder on your desktop, bring or send them to us, and we will take it from there! Download this Checklist to guide your efforts.
We are extraordinarily grateful for the trust you placed in us to prepare your taxes in 2020. We look forward to providing the same year-round service and value driven pricing in 2021. Please allow us to be a resource for anyone you care about with their tax preparation.
Please enjoy the holiday season with less stress knowing that we are on your side.