Like everyone else, you are more than happy that 2020 has come to a close. However, there is one fact that you cannot lose sight of with regard to the Covid 19 pandemic, and that is how the government’s handling of the virus will impact your 2020 tax filing.
THINGS TO GIVE FOCUS TO
- Stimulus checks – Millions of Americans received a stimulus check for $1200 when the majority of the country was shut down. The stimulus check itself does not fall under the taxable income category but will be treated as a refundable tax credit instead.
- Paycheck protection program (PPP) loans – The CARES Act offered this special program to help small businesses stay afloat during the pandemic. These monies were to be used for a certain set of business expenses that included payroll, utilities, rent and even interest paid on business mortgage payments and were entirely designed to be forgiven. (As long as you had a loan forgiveness application approved).
- Unemployment Wages – Many people across the country found themselves out of work, whether temporarily or permanently, as a result of the pandemic and the massive shut down of our economy. With that said, people had to resort to unemployment insurance and benefits to survive. It is required to pay income taxes on these wages, whether you choose to do so with your week-to-week payments or when you actually file your income tax.
- Retirement Plans including 401(k) Plans, IRA’s and much more – The CARES Act also caused a number of changes to many retirement plans, some of which could have a definite impact on your tax filing. From 401K withdrawals that were allowed without early withdrawal penalties to the option to skip required Traditional IRA withdrawals, the changes and challenges are many. If individuals did have to withdraw monies from their 401(k) accounts or from their Traditional IRA accounts early, the Act allows you three years to put the funds back into the appropriate retirement accounts and receive a refund if you had paid any taxes on the withdrawn monies.
THE CHALLENGES CAN BE OVERWHELMING
Certainly, the Covid-19 Pandemic has caused us all a great many challenges that are more than overwhelming to many of us. The items we have discussed above are specific to your tax filing of your 2020 taxes. Filing taxes can be a rather complicated task for many people and this year will certainly prove to be a bit more challenging and confusing. With that said the team here at Tax Alternatives stands ready to meet all your filing needs.
THE DEDICATED PROFESSIONALS WHO ARE HERE TO HELP
Our team of dedicated professionals understands full well the frustration and stress people have had to endure throughout most of the 2020 year, which is why we want to help all our valued clients with their filing challenges they have ahead. Our team of highly skilled and experienced tax
preparation specialists and filing experts are committed to providing only the highest quality services to all our valued clients.
We are equipped with all the experience, know-how and expertise needed to take care of all your tax filings and to do so in a timely fashion ensuring proper filing by required deadlines. We understand the many struggles and challenges most people have endured and want to be able to make a difference in the lives of our special clients by providing not only high-quality services but peace of mind they need.
For all your 2020 tax filing needs be sure to reach out to the dedicated team of professionals here at Tax Alternatives. We look forward to serving you and to helping you get through the final stages of saying goodbye to 2020 forever!