How being unemployed in 2020 could lead to a surprise tax bill

Millions of people received unemployment benefits in 2020 amid the economic fallout from the pandemic. Families also received an additional $600 in weekly benefits up to the end of July 2020, thanks to the CARES Act. Many will owe taxes to the federal government and their state this spring. Generally, unemployment can reduce the value of certain tax credits. Congress created a fix in the pandemic relief act, allowing filers to use 2019’s income to apply for the child tax … Continued

After The Georgia Runoff What Tax Planning Should You Do NOW?

With the results of the Georgia runoff election in the Democrats Control the House, the Senate and the White House. So, the potential for harsh tax legislation increasing taxation of the wealthy, along the lines of prior Democratic proposals, might be likely to happen. What might those changes be? When might they be effective? What planning might you want to do now? https://www.forbes.com/sites/martinshenkman/2021/01/10/after-the-georgia-runoff-what-tax-planning-should-you-do-now/?sh=3106915169ea

New things taxpayers should consider as they get ready to file taxes in 2021

When people get ready to file their federal tax return there are new things to consider when it comes to which credits to claim and what deductions to take. These things can affect the size of any refund the taxpayer may receive. Here are some new key things people should consider when filing their 2020 tax return. Recovery rebate creditTaxpayers may be able to claim the recovery rebate credit if they met the eligibility requirements in 2020 and one of … Continued

Steps to Take Now to Get a Jump on Your Taxes

There are steps people can take now to make sure their tax filing experience goes smoothly in 2021. First, they can visit the Get Ready page on IRS.gov.Here are a few other things people can do now:Check their withholding and make any adjustments soonSince most taxpayers typically only have a few pay dates left this year, checking their withholding soon is especially important. It’s even more important for those who:  • Received a smaller refund than expected after filing their … Continued