Wednesday, January 27

Ready to file your 2020 taxes?



Congratulations to all of us that have worked and made it through another year. It's that time of the year when 2020 tax returns need to be filed. I hope you and your family are safe, and healthy during these trying times. This sure has been a whirlwind of a year. I have a few tips that helps me get ready for tax time. I believe in all aspects of life that it is better to be prepared than uninformed when it comes to your economic nexus, your workers, property, warehouses, and inventory. 



Are you self filing? Joint Filing? Personal? Or Business? If you have receipts, and itemized bills get those together now to be organized.

If you are Self Filing/Joint Filing and worried about your w2 being delayed in the mail you may be able to log into your companies paystub portal to print your W2. With all that is going on it is not the United States Postal Services fault for mail delays. Try calling your employers payroll department and ask if they have a paystub portal you can sign up for or if they can electronically send your w2 since postal mail is delayed right now.

I know this year will be different for many due to the Pandemic and the Stimulus Check that many did not receive. If you didn't receive the new Economic Impact Payment by February 1 you'll need to claim the Recovery Impact Credit. This is where it gets tricky, I know a lot companies dangle early tax loans with their last year's Paystubs, I personally would not do that this year. I suggest seeing a tax professional after February, and after checking the IRS Get My Economic Payment status to see if you were supposed to get it by direct deposit, United States Postal mail or some it says Unavailable/Does not qualify but does qualify. Many that used Turbotax, H&R Block and Jackson Hewitt did not receive their Stimulus Money filing with those type of Tax Businesses due to them taking their fees out in a bank account set up between Accounts that were closed. I would not use one of those businesses this year. Personally I would see a real tax professional, and not ones that do the early tax loans. In my opinion that is why millions of Americans will have to fill out for the Economic Impact Credit on their taxes this year that needed the money now, not later.

Right now it is even more tricky if you are a business. Your tax nexus is the connection between a seller and a state that requires you, the seller to register then collect and send sales tax your state. Business activities such as having a physical presence or reaching a certain sales threshold, establish nexus with the state. If you are a small business I hope you took advantage of The Cares Act Small Business Protection Program Loans available in your States. Some even had Grants to apply for.

Have all your W2s ready, 1099s if you are self filing. Even your Bank Statement Summary can help with itemized expenses. What helps me is highlight with different colors.

This year I suggest having a professional not those pop up strip mall tax companies fill out the 1040 since not all received the full amount or any amount that were eligible who used the pop up businesses. This year will be different than previous tax year's.

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