2020 Tax Preparation Checklists Now Available

2020 Tax Preparation Checklists Now Available

As promised, we have put together a checklist to help you pull together your tax preparation materials for 2020. With all of the CARES Act, Payment Protection Program loan and other changes to tax law last year, we expect plenty of questions and confusion.

Please click the images below to download a copy of the checklist (personal or business). If you prefer, we can email it to you (just call or email Amber at amber@premiercpaservices.com to request your copy).

2020 Personal Tax Preparation Checklist

 

2020 Business Tax Preparation Checklist

 

Remember: We’re back open on Fridays now to handle the busy tax preparation season. Please contact us with any questions or concerns you may have.

Money Brief: Where’s My Money?

If you have not yet received your second Economic Impact Payment, you can check the status at irs.gov/coronavirus/get-my-payment. Direct deposit began on January 4, with mailed checks following that. You’re eligible for the new stimulus payment of up to $600 for individuals or $1,200 for married couples, and up to $600 for each qualifying child if:

  • You are not claimed as a dependent on someone else’s income tax return.
  • Your adjusted gross income for 2019 is up to $75,000 for individuals or up to $150,000 for married couples filing jointly and surviving spouses (payments are reduced or eliminated for filers with income above those amounts).

EIPs are an advance payment of the Recovery Rebate Credit, which will appear on the 2020 Form 1040 or Form 1040-SR.If you have not received your full payment by the time you file your 2020 tax return, you may claim the Recovery Rebate Credit on your tax return. The credit is figured like the Economic Impact Payment, except that the credit eligibility and the credit amount are based on the 2020 tax year information, including income.

Money Brief: 501(c)(4) Applications

The IRS is requesting organizations that want to file Form 1024-A, Application for Recognition of Exemption Under Section 501(c)(4), to file electronically. This will make the application easier to complete and reduce errors, while shortening IRS processing time. The required user fee for Form 1024 is $600, which can be paid fee through pay.gov/public/home.

Money Brief: Tax Filing Season Begins Feb. 12

The IRS will begin accepting and processing 2020 tax year returns no sooner than February 12, 2021. The February 12 start date allows the IRS time for programming and testing following the recent tax law changes. The IRS urges taxpayers to file electronically with direct deposit to speed processing and refunds — nine out of 10 taxpayers should receive their refund within 21 days of when they file electronically with direct deposit (assuming no issues).

Money Brief: Feb. 1 Deadline for W-2s

If you are an employer, you must file Form W-2s and other wage statements by Monday, February 1, 2021. This is also the date Form W-2s are due to employees. Form 1099-MISC, Miscellaneous Income and Form 1099-NEC, Nonemployee Compensation, are also due to recipients on February 1, 2021. E-file is the quickest, most accurate and convenient way to file these forms. If we are filing these forms for you, please get your information to us ASAP.

Money Brief: UGA Business Webinars

Register today for one of UGA’s upcoming webinars discussing the new SBA funding programs. Discussions will include updates and changes to the new PPP, the Targeted EIDL advance, the SBA Debt Relief Program, and the Shuttered Venue Operators Grant program, among others.

Important Changes to Your 2019 Taxes & Tax Forms

Important Changes to Your 2019 Taxes & Tax Forms

Several years later, the 2017 Tax Cut & Jobs Act continues to impact our taxes and the tax return forms we use. Keep these changes in mind when filing this year:

Standard Deductions — The standard deduction is a specified amount that’s subtracted from your AGI to help determine your taxable income. In many cases, it makes sense to use the Standard Deduction instead of itemizing. See the chart here for the 2019 rates.

Itemizing Considerations — To benefit from itemizing, your personalized deductions should be more than your standard deduction. This may be the case if you pay a mortgage, have high medical bills and/or make extensive charitable donations. If you choose to itemize, note that the 5% AGI limit on medical expenses has expired; the floor is now 10% for 2019. Also:

  • The maximum deduction for charitable cash donations to qualified organizations is 60% of your AGI.
  • Deductible mortgage interest is capped for loans up to $750,000.
  • Moving expenses are no longer deductible for job relocation, unreimbursed employee expenses or employer-subsidized parking and transportation reimbursement.
  • Deductions for casualty and theft losses, tax preparation costs and other miscellaneous deductions are no longer available.
  • Alimony payments are no longer deductible (and if you receive alimony, you don’t have to claim it as income anymore).

Health Insurance Penalty — This rule has been repealed; there is no longer a penalty if you do not have health insurance coverage.

Capital Gains/Losses — In general, taxes on capital gains are lower unless you’re among those in the highest income brackets. Updated from last year, total capital gains (or losses) are once again directly entered on Form 1040 (Line 6) and not on Schedule 1.

Senior-friendly — A new tax return with a large, easy-to-read font has been created for taxpayers born before January 2, 1955 (IRS Form 1040-SR: US Tax Return For Seniors). It includes a standard-deduction chart, though Schedule A is still available for itemizing deductions as needed.

Of course, the deadline for filing your taxes has NOT changed! But we’re here to help you make sure they’re done correctly and on time. Just drop off your materials by March 27 so we can meet the April 15, 2020, tax-filing deadline. Or, let us know if we need to file an extension for you by calling 706-632-7850 or emailing us today.

Sources: Credit.com, Forbes

The information provided here by Premier CPA Services PC is for general information only. It does not constitute legal, accounting, tax or other professional advice or services, and is presented without any representation or warranty as to the accuracy or completeness of the information. Please contact us for information as it relates to your circumstances.
New Tax Changes May Affect Your Retirement Savings

New Tax Changes May Affect Your Retirement Savings

President Trump signed into law in December a bill to keep the federal government funded. As part of that bill, several new tax changes were enacted, include some major changes to retirement plan rules.

The new “SECURE” Act is designed to encourage retirement savings and to simplify administrative requirements for small businesses. For the most part, these are positive changes and good news if you’re saving for retirement. Some of the key changes include:

  • Increasing the age after which required minimum distributions from certain retirement accounts must begin from age 70½ to age 72.
  • Repealing the maximum age for IRA contributions, which was formerly 70½.
  • Allowing penalty-free distributions from qualified retirement plans and IRAs to help pay for births and adoptions.
  • Allowing qualified home healthcare workers to contribute to a defined contribution plan or IRA.
  • Making it easier for long-term, part-time employees to participate in elective deferrals.
  • Making it easier for small businesses to offer multi-employer plans by allowing otherwise completely unrelated employers to join in the same plan.

One change that could create some substantial tax consequence is the requirement that non-spouse beneficiaries of IRAs and qualified retirement plans withdraw all money from inherited accounts within 10 years. This rule takes effect for accounts inherited after January 1, 2020.

Other Tax Changes Made

In addition to the retirement plan adjustments noted above, the new law also:

  • Allows certain expenses associated with registered apprenticeship programs to count as qualified higher education expenses for 529 accounts.
  • Repeals the excise tax on certain high-cost employer health plans (the Cadillac tax), the medical device excise tax and the annual fee on health insurance providers — all of which were part of the Patient Protection and Affordable Care Act, but had been postponed or suspended.
  • Extends several expired tax provisions, including those relating to the discharge of qualified principal residence indebtedness income; the treatment of mortgage insurance premiums as qualified residence interest; the continuance of the 7.5% (instead of 10%) adjusted-gross-income floor for medical expense deductions; and an above-the-line deduction for qualified tuition and related expenses.
  • Extends through 2020 several tax credits that were scheduled to expire, including a new markets tax credit, an employer credit for paid family and medical leave, the work opportunity credit, and the credit for health insurance costs of eligible individuals.
  • Provides tax relief for victims of various disasters occurring in 2018, 2019, and through January 19, 2020.

Give Us a Call: 706-632-7850

To take full advantage of the changes under this recent legislation, schedule an appointment to come in and talk with Jackie or Donna. We can review your personal situation and provide guidance for some smart financial moves.

We’re also booking appointments for tax filing beginning in January, so call us if you’re ready to get started!

(Source: Journal of Accountancy)

Important & Interesting Dates to Note for 2020

JAN 15: 4th Quarter Estimated Tax Payments due for 2019

JAN 31: Final date for employers to send W-2 and 1099 forms

FEB 2: Super Bowl LIV (Miami)

FEB 29: Leap Day

MAR 8: Daylight Savings Time begins

MAR 24: Georgia Presidential Primary

APR 1: Census Day (By this date, every home will receive an invitation to participate in the 2020 Census)

APR 15: Tax Day

APR 22: Earth Day 50th Anniversary

JUL 24-AUG 9: Summer Olympics (Tokyo)

OCT 15: Tax Filing Extension Deadline

NOV 1: Daylight Savings Time ends

NOV 3: Election Day

The information provided here by Premier CPA Services PC is for general information only. It does not constitute legal, accounting, tax or other professional advice or services, and is presented without any representation or warranty as to the accuracy or completeness of the information. Please contact us for information as it relates to your circumstances.