This summer has been much different from summers of the past. I’ve spent most of my time at home and in my office as everything is remote these days. I have found time for day trips out to rivers and lakes as they’re more secluded and great ways to get out of dodge. I did purchase new kayaks for the family so we’re able to strap them to the roof rack and paddle around regional water ways.

This year had a surprise ending as tax season was extended through mid July. I just recently finished filing client returns this year. Along with changes due to COVID-19 we’re seeing many adjustments to tax laws and tax policies, as well as economic support to businesses and taxpayers. If you have specific questions about these tax changes or would like to schedule time for tax planning, please email me your questions.

Here are a select (but not all inclusive) list of tax notes just for you:

Ever wondered where your tax dollars go? Check out this informative article from the Center on Budget and Policy Priorities
CARES act (Coronavirus Aid, Relief, and Economic Security) was put into place. This had wide reaching impacts with one well known positive change of making direct impact payments to tax payers. There is a planned tax credit/rebate that should show on your return for 2020 related to this.
W-4 Employee Withholdings - I’d like to draw attention to this again as changes have been made to both the tax code and to this form in recent years. It’s possible that you can have the highest withholdings set but still owe money at the end of the year. Many employers allow for additional withholdings to be added to paychecks.
If an employer paycheck just isn’t for you and you run your own business, then consider making quarterly Estimated Tax Payments. This is a method used to pay tax on income that is not subject to withholding. This income includes earnings from self-employment, interest, dividends, rents, and alimony. This can help to protect against penalties and interest owed to the IRS or local agencies.
The standard deduction for 2020 is $12,400 for single and $24,800 for married filing joint.
There are 7 tax brackets for 2020 ranging from 10% to 37%.
PPP (Paycheck Protection Program) - This lending option was part of the coronavirus response. It’s a loan financed through a bank with a shorter payback period. Each bank has a different application process. Note, there are potential risks to taking on additional debt.
EIDL (Emergency Injury Disaster Relief Loans) - This lending option is through the SBA and is a standard offering. It can provide longer repayment terms at lower interest rates. Be prepared for a more extensive application process. Note, there are potential risks to taking on additional debt.

Wishing you all the best this summer!