We all can probably agree that doing your annual taxes can be stressful. Just reacquainting ourselves with the basics can be a challenge. So, when you prepare your taxes this year, review this article for a few pieces of basic tax information that apply to everyone. The dollar amount for standard deductions and tax brackets seems to change every year, and people are always looking at the instructions to see what numbers to use when filing taxes for that particular year.
We all may be asking ourselves, why do they have to make it so confusing? Why do they change things every single year? It sounds like it would make all of our lives simpler to forever keep it the same, so we can just repeat the same process each year when filing taxes. But that is never the case with the IRS. This is where experienced and helpful Sarasota IRS Lawyers come in.
The Law Office of Mary E. King, P.L. can make sure that your tax planning and other issues are resolved efficiently and at the lowest cost to you. Please fill out our online contact form, or call us at 941-906-7585 today.
1. Standard Deductions
It is generally good news to see how the standard deduction changes every year because it seems to go up each tax season. This is one time when, as we place figures on our tax returns, that we may even smile. More deductions are always a good thing.
When filing your 2020 taxes the standard deductions are as follows:
For single filers – $12,400
For married filing jointly – $24,800
For Married Filing Separately – $12,400
For Head of Household – $18,650
In addition, if you are over 65 or blind, you can add $1,300 to the standard deduction.
These deductions are up a little from last year, which was $12,200 for single and $24,400 for married filing separately.
2. Income Tax Rates
When you file taxes this year, the income tax bracket you are in may have changed from the bracket you were in last year. Tax brackets are based on your income. The IRS publishes charts listing the different tax brackets. Once you determine what tax bracket you are in, then you look at your tax rate. The 2020 tax rates stayed the same as the 2019 tax rates. Your tax rate is the percentage of income tax you pay, which you determine by looking at your tax bracket.
For filing 2020 taxes, your tax bracket is very possibly the same as last year, because each bracket only changed by a few hundred dollars. Still, it is worth looking into how these changes may affect the amount of taxes you pay. Sarasota IRS Lawyers will help you with figuring this out.
3. Itemized Deductions and Tax Credits
The words deductions and credits are always music to the ears when preparing taxes. This is a way to reduce the amount of money you pay to the IRS.
For people who itemize deductions instead of using the standard deduction, the most important thing to do is to take advantage of all itemized deductions you are allowed by the IRS. These can change yearly and the amounts allowed can change as well. There are a lot of deductions that the IRS allows when itemizing, and there are many deductions that some people don’t take advantage of because they don’t know about them. Sarasota IRS Lawyers can discuss your options for itemized deductions with you.
Tax credits are different than deductions but still accomplish the same task in lowering the amount of taxes we have to pay. Tax credits, like itemized deductions, cover a lot of territories. But, they are something you should educate yourself about and claim, if possible, on your taxes. They range from ones we have all heard of, like the earned income credit and child tax credit, to little-known education credits such as the lifetime learning credit.
4. Discuss Your Tax Return with a Professional
Sarasota IRS Lawyers will help navigate the tax preparation process. They can help you find all of your deductions and credits.
Consider reaching out to the Law Offices of Mary E. King for help. Tax matters can be complicated, and thus, it is always helpful to have someone in your corner who understands the tax law and deals with the IRS on a regular basis. Indeed, beyond just the tax laws, there could be other issues with which a seasoned tax attorney can help.
So, when it comes to dealing with tax questions, tax relief, and tax litigation, you need to talk to Sarasota IRS Lawyers who can help. Mary E. King has spent her career concentrating in tax law and can help you in Florida and elsewhere. Attorney King has a wealth of information about what types of options would make the most sense for you and your business.
That helps explain why she’s received an A+ rating from the Florida Better Business Bureau. If you have a tax-related issue – no matter how small or how large – setting up an initial consultation with Mary E. King, tax lawyer of Florida, is the first step you should take towards relief.
The Law Office of Mary King P.L. offers complete IRS problem-solving services including all areas from tax debt settlement to planning the most efficient tax strategy for individuals and businesses. Call us today to schedule an initial consultation. With years of experience as Sarasota IRS Lawyers for many clients, Attorney Mary E. King can make sure that your tax issues are resolved in your favor. Fill out our online contact form, or call us at 941-906-7585. Remember, at the Law Office of Mary E. King, we are focused on solving your tax issues for good.
The information in this blog post is provided for informational purposes only and is not intended to be legal advice. You should not make a decision whether or not to contact an attorney based upon the information in this blog post. No attorney-client relationship is formed nor should any such relationship be implied. If you require legal advice, please consult with an attorney licensed to practice in your jurisdiction.