To facilitate implementation of software changes, the IRS announced that tax season will begin February 12. The role of the IRS ‘evolved’ this past year, becoming the central distributor for billions of dollars in pandemic-related stimulus. Thus, it’s fitting that tax season begins this year on Darwin Day, an international celebration by scientists, commemorating the life and work of Charles Darwin (on his birthday). READ MORE
If you were eligible to receive covid-19 related stimulus payments, and never received them, you may be eligible to claim the Recovery Rebate Credit when you file your 2020 personal tax return. READ MORE
Beginning with tax year 2020, taxpayers may claim up to $300 in charitable cash donations, in addition to the standard deduction.
As background, individual taxpayers claim a standard deduction or itemize deductions like mortgage interest, property taxes, and charitable contributions. The 2018 tax code increased the standard deduction, while limiting certain itemized deductions. READ MORE
This year, U.S. unemployment jumped from a historically low 3.5% in February to 14.7% in April and remained at 10.2% in July. The pandemic-induced spike impacted many long-term employees, especially workers in industries vulnerable to social-distancing mandates. First-time recipients are often surprised to learn that unemployment benefits are taxable. As such, the IRS reminds us, they are. READ MORE