Tax Changes for 2020
Individual tax rates Updated - applicable for 2020 tax returns
All the individual marginal tax rates under are retained (10%, 12%, 22%, 24%, 32%, 35% and 37%).
Capital gains and dividends
Capital Gains Rates Vary depending on numerous factors including the type of transaction generating the capital gain and the effective tax rate of the taxpayer.
Health Care Reform Act For 2019-2020 and future years, unless the tax law changes, there is not a penalty for failure to have health insurance.
CARES ACT - This is related to COVID19. Key provisions include:
* RMD - No required minimum distribution.
*Age to begin taking a required minimum distribution has changed to age 72.
*No penalty for early distributions from retirement accounts for qualifying taxpayers who were affected by the pandemic.
*A $300 deduction for qualified charitable contributions (cash donations; cash includes via check, debit or credit card) for taxpayers who do not itemize.
If you were entitled to a Stimulus payment, issued due to the pandemic, but did not receive the stimulus payment, it will be calculated and refunded with your 2020 tax return. *Very limited and applies only to taxpayers who did not receive the stimulus payment but were eligible to receive it.*
Business Tax Changes
See our separate pages for Section 179 & Bonus depreciation and the Business Tax Deduction Checklist pages.
Business e-file is open. Early filing is recommended.
The IRS and SSA have changed due dates for returns. ALL W2's and 1099's must be filed by January 31st. There is no extension available for these returns and significant penalties will be imposed for late filing of Forms W2 or 1099's.
All calendar year Partnership returns are due March 15th. An extension is available.
All calendar year C Corporation returns are due April 15th. An extension is available.
All calendar year S Corporation returns are due March 15th. An extension is available.
Visit our Newsletter Section for many more updates.
Myra B. Carlisle, CPA
Myra Carlisle & Company, PC
2107 Martin Street S Suite 100
Pell City, Alabama 35128-2354