Tax Time Tally - Your update for all things tax season

January 28, 2021

2020 was like no other—an extended tax deadline, tidal waves of PPP rules and changes, forgiveness calculations, and working to simply maintain some semblance of normalcy. Because it was a tough year, our team wants to help you prepare early as we face the beginning of a new tax season.

 

Tax Time Tally represents our new year newsletter—summing up everything you need to know as we enter the 2021 tax season.

 

Office updates

  • Hours of Operation: Monday through Friday from 8 A.M. to 5 P.M. 
  • Meetings: For the safety of both clients and staff while the threat of Covid-19 persists, we are offering phone conference and Zoom videoconference meetings. Please contact our office to schedule a meeting.
  • Tax document delivery: We ask that you upload your documents to your secure online portal or use traditional mail service. If you need a secure portal, please call our office so we can set one up for you. If you prefer to drop off your documents to our office, please make sure to place your items in a sealed envelope.
  • Return delivery: We are happy to share that we have implemented a new program—SafeSend Returns. With SafeSend, you will now be able to retrieve and electronically sign your 1040 return. As part of the electronic signing process, you will be asked questions to confirm your identity in accordance with the requirements established by the IRS. You also will have the option to print your documents for manual signature. PLEASE NOTE: To ensure delivery, please send your updated and preferred email address to info@ttpcpa.com.

 

Important Dates

  • February 12: The IRS has announced that we cannot start filing individual returns until the 12th of February. While this is later than normal, please send your tax documents to us as soon as possible, in order to meet the deadlines.
  • March 15 / April 15: As of now, the tax deadlines for 2020 Tax Returns are March 15 (or Partnership & S-Corporation Returns and April 15 for Individual and Trust/Estate Returns.

 

Important tax updates 

  • Stimulus Payments: If you received a stimulus payment for either Round 1, Round 2, or both… you must relay the accurate amount of the stimulus received or return the IRS Forms 1444 (first stimulus) or 1444-B (second stimulus). The IRS forms should be mailed in late January or early February. The stimulus payments are not taxed, but if you qualify for more than you received, it will be added to your 2020 Tax Return.
  • Unemployment: Unemployment benefits received are taxable. If you received unemployment during 2020, you will receive a 1099-G from the state. This form will be needed to complete your return.
  • Retirement Distributions: 2020 allowed individuals to cash out retirement plans and pay back 1/3 each year and not be taxed or penalized. If you did this, please wait for the 1099-R from the payer.
  • Required Minimum Distribution (RMD): There is no RMD for 2020. If you took the RMD and returned it, please make sure your tax documents received from your broker for 2020 are correct for the money that was received and not returned.
  • 529s may be used now for grades K-12, private, or religious schools up to $10,000.
  • IRA contribution maximums remain the same for 2021. 
  • Roth income limits for 2021 for Married Filing Jointly (MFJ) starts at $198,000 and ends at $208,000 for Modified Adjusted Gross Income (MAGI). 
  • 401K limitations for employee contributions remain at $19,500 for 2020.

 

Questions?

If you have questions regarding items you need to submit for your tax return, or have other tax related questions, please call our office at 205.733.8265.

We look forward to assisting you this tax season!

The Truitt, Tingle, Paramore & Argent Team  

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