Well, the official 2019 tax season is now behind us, and what a tax season it was. To begin with, we were still adjusting to last year's tax law changes and coming to grips that most of us could no longer use our mortgage interest, property taxes, charitable contributions and work expenses. (Not always a bad thing, just different)
Then of course the Coronavirus hit and affected us in ways we never imagined. We as business owners, had to change how we do business. We as an accounting and tax office was able to eliminate the face to face meetings by utilizing our client portal, email and our physical (office) drop box. We also used DocuSign to get our clients required signatures. Challenging it was, especially for someone that enjoys interacting and talking with clients, especially those that I've known for many years. We are prepared to continue to use portals, email and DocuSign, in the future as an addition to our normal face to face appointments. In mid-March the tax deadline was extended till July 15, giving taxpayers more time to not only file, but also pay their taxes, which many took advantage of. This was unprecedented and we fully expect the deadline to resume to be April 15 going forward.
Shortly afterwards, taxpayer begun receiving “Economic Stimulus Payments,” which for many was a godsend, but for many others caused a mass amount of questions and confusion. Most questions we could not answer, we were given little to no information about these payments. We still have unanswered questions, that we await answers on. The importance of staying up to date on your taxes and utilizing direct deposit, was most prevalent. We do know, however, if a taxpayer did not receive a “payment,” (and should have), they need to be sure and file a tax return for 2020, even if they aren’t required to do so.
Many workers received (and still are receiving) unemployment benefits. It’s Important to remember these benefits are taxable for both federal and state. Hopefully taxes were (or are) deducted. Failure to have taxes taken out, could (and most certainly will) cause a return to have a balance due (in other words owe). A couple ways to prepare or plan for this is to either have extra taxes taken out of your paycheck for the rest of the year or send in estimated payments. Your tax preparer can help you with this. We at J & J Taxes and More are always available for any questions you may have, email or call us. Like our Facebook page where we’ll give you the latest information available and give you the opportunity to private message us, anytime. Joe Bartley