Now that the 2020 tax season is under way I have been getting lots of questions. Here are some fast facts to help you understand the always confusing tax laws:
- If you received a state tax refund last year you may not have to claim it as income on your 2019 tax return. Due to the tax law changes that went into effect last year, a larger number of taxpayers than ever did not have to itemize deductions. If you didn’t itemize last year, you don’t have to claim your state refund as income this year.
- The age for taking the RMD (required minimum distribution) from an IRA account has gone from 70.5 to 72, and there is no more age cut-off for making IRA contributions.
- The fastest way to get your refund is to have it directly deposited into your bank account. The IRS pays most of these refunds within 21 days!
- If you lost your SSA-1099 form (the Social Security Benefits Statement) you can get another one fast by setting up an online Social Security account and printing the lost form. It is really fast and easy to set-up the online account and can be done in about 10 minutes. Go to SSA.gov.
- The IRS is very interested in taxpayers who transact in virtual currency. There is now a question regarding this on Schedule 1 that all taxpayers must answer.
- If you got a government subsidy for buying health insurance last year, you must include form 8962 with your 2019 tax return to reconcile the advances you received with the credit you are entitled to. If you under-estimated your 2019 income you may have gotten a larger subsidy than you should have and will have to pay it back when you file your 2019 tax return.
Of course there are a huge number of other issues that your tax expert needs to understand in order to do the job correctly and ensure that you pay the minimum legal tax and comply with the tax regulations. Fortunately for my clients, I am here to help, 52 weeks a year, with over 35 years of tax prep experience. Call or email me today!
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