You may be wondering what tax changes you need to be aware of when filing your taxes this year. The coronavirus delayed tax deadlines last year, and some of you may be wondering what effect, if any, it will have on taxes this year. One thing you can generally be sure of is that a new year means new tax laws as well as changes to filing your tax returns. This applies to both individuals and businesses. This article will give a brief overview of some changes, and more will be discussed in future blogs.
This past year Congress passed quite a bit of legislation that may impact your taxes including the Coronavirus Aid, Relief and Economic Security Act (CARES); Families First Coronavirus Response Act; Setting Every Community Up for Retirement Enhancement Act (SECURE); and the Taxpayer Certainty and Disaster Tax Relief Act of 2019. This is an incredible amount of legislation, and much of it is tax-related. The best way to make sure you are informed on how you need to prepare your taxes is to contact a tax preparation attorney in Sarasota, Florida.
The Law Office of Mary E. King, P.L. can make sure that your tax 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. One-Time Earned Income Credit Lookback Provision
When filing 2020 tax returns, there is a one-time lookback provision that allows people to either use their 2019 or 2020 earned income to calculate the Earned Income Credit. The benefit to this is it may help more people qualify for the refundable portion of the Child Tax Credit. As you may know, unemployment income is taxable income, and for some unemployment recipients, taxes were not withheld from those payments. Accordingly, this tax credit could help lower your tax bill. In order to determine which is best for you, make sure and bring your 2019 tax return with you to your appointment with a tax preparation attorney in Sarasota, Florida.
2. Economic Impact Payments
Many in the country received an Economic Impact Payment in 2020, and the good news is that you do not have to include these payments as part of your income when you file taxes. There are some people who should have gotten the payment but did not. If you fall into that category, then you can claim a tax credit called the Recovery Rebate Credit on your 2020 tax return.
3. Paycheck Protection Program Forgiveness
Businesses may have participated in the Paycheck Protection Program (PPP), which was part of legislation passed by Congress to help people during the pandemic. These loans qualify for forgiveness as a further way to help small businesses. However, this is not automatic and specific things should have been done, and must be done, to qualify for forgiveness. It is imperative to speak to a tax preparation attorney in Sarasota, Florida about this as soon as possible if you received PPP money.
4. Charitable Giving
People should also be aware of changes to charitable giving laws. If you don’t usually itemize, you probably think you cannot claim charitable contributions. But you are now allowed to claim an “above-the-line” deduction if you gave over $300 cash to qualifying charitable organizations during 2020.
5. Waiver of 10% Early Withdrawal Penalty for IRAs
Another important change is available for people who had to withdraw money from IRAs and workplace retirement plans. Normally there is a 10% early withdrawal penalty. But that is waived for 2020 and the withdrawal income can be spread out over three years. Deciding how to file taxes after taking money from your retirement accounts can be confusing and the best decisions must be made on how to document it on your tax returns. Contact a tax preparation attorney in Sarasota, Florida to discuss this.
Having a tax preparation attorney in Sarasota, Florida at your side to advise you, and to give you options for your tax returns this year, is important.
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 stimulus payment from the IRS, there could be other issues with which a seasoned tax attorney can help.
So, when it comes to dealing with tax relief and tax litigation, you need to talk to a Sarasota tax planning attorney who can help. Mary E. King has spent her career concentrating in tax law and can help you with tax scams 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 a tax lawyer in Sarasota, Florida 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.