We’ve entered a full year of living with the pandemic, and there have been several events during the year that could affect you this tax season. In April 2020, the CARES Act (Coronavirus aid, Relief, and Economic Security Aid) provided relief to individual Americans and businesses and temporarily altered some parts of the tax code. While this was almost a year ago, the implications for you may extend to this year’s tax season. Here are 5 things to know about COVID and your taxes.
Stimulus Checks
Temporary Rules for Retirement Account Distributions
Suspended Required Minimum Distributions
Charitable Contributions
PPP Loans for Small Businesses
The Paycheck Protect Program (PPP) helped businesses affected by COVID by providing potentially forgivable loans. When a PPP loan is forgiven, a business doesn’t have to include it in its gross income for federal taxes. But, any expenses paid with PPP money are not tax-deductible.[5]
We’ve all been in the same boat this past year, even if it doesn’t feel like it due to social isolation. Know that we want to be there for you throughout your entire retirement journey and to help you create a plan that weathers storms and accounts for the unexpected. We can help you adjust your tax strategies and create a long-term tax minimization plan in retirement. Sign up for a complimentary review to start the conversation about your retirement finances and tax burden.
[1] https://www.irs.gov/newsroom/economic-impact-payment-information-center-topic-j-reconciling-on-your-2020-tax-return
[2] https://www.congress.gov/bill/116th-congress/senate-bill/3548
[3] https://www.irs.gov/newsroom/irs-seniors-retirees-not-required-to-take-distributions-from-retirement-accounts-this-year-under-new-la
[4] https://www.congress.gov/bill/116th-congress/house-bill/748
[5] https://www.thebalancemoney.com/
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