Be ready for new laws
and new forms!
A copy of our annual newsletter is below.
See what credits and deductions were extended back to 01/01/2018 and/or carry through to 12/31/2020.
Use our newly updated checklists to help you organize your information.
Call us with your questions about tax law changes or withholding adjustments.
Important Info for 2020
SEASONS GREETINGS FROM THE SHACK!
2020 has been one heck of a year. We hope everyone is staying healthy and enjoying the holiday season. As of the writing of this letter, there are no extensions on any due dates. Tax returns and tax payments are due as usual.
Coronavirus - Please let us know if any of these situations apply to you and your family and the applicable dates:
- You or an immediate family member were diagnosed with and/or treated for Covid-19
- You were unable to work due to a quarantine order or medically advised self-quarantine order
- You were unable to work because you exhibited Covid-19 symptoms and were seeking diagnosis
- You were unable to work because your child's school or place of care was closed due to Covid-19 or
your child care provider was unavailable due to Covid-19
- You were unable to work because you had to care for someone subject to a quarantine order
We know this is personal information, but there are several tax provisions this year that revolve around this disease and they may affect your situation depending on unemployment, self-employment, retirement distributions, etc. Knowing your situation will clue us in to anything that may benefit you.
Health Insurance - Please remember if you obtain insurance on the state health exchange known as WA Healthplanfinder, we are REQUIRED to get your Form 1095-A to do your taxes. Many epople had to amend last year because they did not bring us this form.
Other changes on your 2020 return -
1. The Standard Deduction has increased to $24,800 (married filing jointly) and $12,400 (single). Tax Brackets have also increased for inflation.
2. If you normally take the standard deduction and do not itemize, there's a new charitable donation deduction for monetary donations (not goods) for 2020 on top of the standard deduction up to $300. If you made monetary donations to qualifying charities, provide us with receipts so we can see if this benefits you.
3. Required Minimum Distributions from IRA's were not required for 2020, but are back in place for 2021.
4. Dependents who are not qualified children as defined by the IRS must have income of less than $4300 in 2020 to qualify as a dependent.
5. For businesses, the deductible rate for business miles is $0.575/mile in 2020 and $0.56 cents for 2021.
Our Office Procedures - We intend to stay open throughout tax season unless mandated otherwise and with your help, we can do so. Face masks or face shields properly covering both nose and mouth will be required to be worn while here. We do recommend wherever possible that you limit the number of people actually coming into the building at one time and if you see we are at capacity, please wait outside or return to your vehicle until someone else exits. If you are unable to wear a face covering or choose not to come in person, we can prepare taxes by mail, fax, email, and our secure portal system is available for securely uploading/downloading documents. Electronic signature is available if you have a valid email. We will help you figure out the best way to complete your taxes.
January 11th we open with our extended hours (see below)
February 28th last day to drop off tax info for Partnerships and Corporations to avoid extension
March 31st last day to drop off tax info for Individuals and Sole Proprietors to avoid extension
April 15th Tax Season ends. Extensions, IRA/HSA contributions & Q1 estimated payments due
Our office hours beginning Monday, January 11th will be Monday-Friday 9am to 6pm and Saturday 10am to 4pm. There is no possible way we could put all of the new info in this short newsletter so be sure to check our web site for more up-to-date information and to get more checklists. We are looking forward to seeing you again this year!
Tara and Brandy