Best Practices at Tax Time for I.U.P.A. Members from Tax Refund Services
Did you know you can have a charitable deduction up to $300 this tax year without itemizing? This amount doubles for married couples. As of 2017, with the passing of the Tax Cuts and Jobs Act, millions of taxpayers were no longer able to itemize or write off their unreimbursed employee expenses. The standard deduction for Married Filing Jointly for the 2020 tax season is $24,800 and $12,400 for Single filers. Most taxpayers are limited by these restrictions and therefore have not claimed charitable contributions the last few years. This charitable deduction will apply to the 2021 tax season as well so make sure to keep any records of your cash contributions this year.
Other additions worth mentioning are the Rebate Recovery Credit, which allows taxpayers to claim any stimulus money they did not receive on their tax return. It may also benefit you to provide a copy of your 2019 tax return to your tax preparer to see if you can apply credits that benefited you last year on this year’s tax return. There is also a way to avoid paying the early withdrawal penalty if you had to withdrawal from your retirement account last year.
With so many unique factors this tax season related to the pandemic, it may benefit you to receive a free quote from a tax professional. Tax Refund Services offers an easy online process where you can have a one on one consultation regarding your specific tax situation.
Simply visit www.taxrefundservices.com for a FREE estimate today!