Well another Tax Season is in the books!
This tax season certainly had its share of drama. Covid, Stimulus & Tax Law changes in March certainly being the big ones. 2021 promises to offer its share of new challenges but we will navigate through those as well. For those who filed an extension make sure you you get filed by the October 15th deadline. Remember that even though you filed an extension you are paying interest and penalties on any unpaid balance due. The next estimated tax payment is due on June 15th.
For 2021 it appears you will be able to deduct $600 for cash charitable contributions above the line even if you take the Standard Deduction. Be aware if you are eligible for the advanced child tax credit you wont have those credits available to help pay the tax bill next year so adjust your withholdings or estimates accordingly. If your a divorced parent and this is not your year to get the credit you may want to go on line and opt out of the advanced credit. This credit will be reconciled on the 2021 return. If you did not claim expenses paid with PPP money you may be able to get those deductions for 2020 on your 2021 return without filing amendments. Safe Harbor rules have been put in place to deal with this. Obviously things will change between now and December 31st but these are some of the things I’ve read dealing with 2021 taxes. I will try to keep you updated as the changes come down the pipeline. As we saw this year nothing is in stone and nothing seems to be off the table when it comes to tax law changes. It also appears that we wont have to file amendments for early filers to get back taxes paid on the first $10,200 of unemployment at either the Federal or Ohio level but we will see how that all works out. I’m sure we will be dealing with this still when we do next years taxes. We will just have to wait and see.
I want to thank all of my customers for their patience this year and the great number of referrals you sent my way. It ended up being my best tax season ever. I’m so pleased that you are happy enough with the service you received to recommend me to your friends and relatives. I look forward to seeing you all again in 2022. If you have any questions between now and then please give me a call. I’m available year round for any tax questions you may have.
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