Income Tax Highlights For 2020

The Latest Tax News and Information

You can check your refund status anytime via our online tool or by calling . Any information pertinent to addressing the specific situation, which may include the names and tax identification numbers of the impacted taxpayers or employees. The Internal Revenue Service notified you that a false return was filed. For additional information about filing season, including tips to reduce the chance your return is stopped for review, go to If your business is already registered, but you now also qualify as a marketplace facilitator, you must update your records by July 1, 2019, to reflect the change. If you are a previously unregistered business, and now qualify as a remote seller or a marketplace facilitator in Virginia, you have 30 days from the qualification date to register.

Warrantless state tax debt collection methodsThe warrantless state tax debt collection methods under Tax Law §§ 174-c and 1701 have been extended through March 31, 2025. New York City resident tax ratesThe New York City resident tax rates and the 14% additional tax have been extended and now apply to tax years beginning before 2024. The Following New York City Taxes are collected by New York State instead of New York City.

The Latest Tax News and Information

In a letter dated March 15, the AICPA asked for IRS guidance on how S corporations and partnerships should treat tax-exempt income from PPP loan forgiveness, especially when it occurs during a different tax period. Hire a veteran creditThis credit has been extended through December 31, 2021.

Alters the definition of “eligible apprentice” for the purpose of claiming a tax credit for the employment of eligible apprentices. Tax Booklets at Comptroller’s Taxpayer Service Offices – Tax booklets are available at all of ourlocal taxpayer service offices. The resident tax booklets contain both the tax forms and the instructions for each major form. The tax forms on the Web site are available separately from the resident and nonresident instruction booklets.

New York State Is Set To Raise Taxes On Those Earning Over $1 Million

Here’s what’s different for the 2020 tax year, which will affect the tax return you’ll file in 2021. The U.S. Treasury has announced a third round of economic impact payments. Not everyone qualifies, and when you’ll get money depends on a few factors.

If taxpayers file electronically and receive a message that Virginia Tax has accepted the return, no more action is necessary at this time. – The federal tax reform of 2017 significantly raised the federal standard deduction. Under current Maryland law, if you take the standard deduction the federal level, you cannot itemize at the Maryland level.

The Latest Tax News and Information

Though the government shutdown is still ongoing, the IRS called more than 46,000 employees back to work to process tax refunds. They will also answer phone calls in the coming days, but taxpayers should expect longer wait times.

U S. State Income Taxes

“I hope people pay attention to this sales tax holiday and take the time to prepare their homes and themselves for whatever may come our way, while saving some money,” said Governor Bob McDonnell. “In recent years, we’ve seen hurricanes, earthquakes, tropical storms and tornadoes in Virginia. Stocking up on water, flashlights, batteries, first aid kits and other essentials can make a big difference in an emergency.” Five tax-preparation software providers are available under the Virginia Free File program.

The other 50 percent will be distributed to the localities in which the tax was collected. If you owe money to Virginia local governments, courts, other state agencies, or the IRS, the Department of Taxation will withhold all or part of the refund to help pay these debts.

Can I file my 2020 taxes now?

You can prepare your taxes now — through the IRS’ Free File tax preparation service, if you qualify to use it — or through a tax-preparation service. The tax-filing deadline is April 15 this year, but you can file a tax extension if you can’t make the deadline.

The Franchise Tax Board today announced special tax filing relief for Californians affected by wildfires. The Franchise Tax Board today announced additional tax filing relief for Californians affected by the September wildfires. Coronavirus Tax Relief — The IRS has established a special section focused on steps to help taxpayers, businesses and others affected by the coronavirus. The IRS will provide relief for taxpayers having difficulty meeting the terms of previously accepted offers. The IRS is providing extended guidance to automatically include new tax year balances accrued in existing installment agreements for individuals and out of business entities.

Tax Brackets And Tax Rates

They suggest that the extended deadline would give the IRS more time to prepare their filing systems to avoid computer system breakdowns on Tax Day. Many taxpayers filed their 2020 return early, millions of whom reported their unemployment benefits on Form 1099-G for the first time in their life. The recently passed stimulus bill made a portion of these benefits tax exempt and taxpayers who already filed did not get to take advantage of this. The IRS has confirmed that those who already filed will be issued a refund for the tax they paid on this income. IR , March 17, 2021 — The Treasury Department and Internal Revenue Service announced today that the federal income tax filing due date for individuals for the 2020 tax year will be automatically extended from April 15, 2021, to May 17, 2021.

Once the increased credit amount is reduced, the credit plateaus at $2,000, and the phaseout begins at $200,000 ($400,000 for MFJ). Go to irs.gov and use the IRS’ e-File program to file both federal and state returns.

What deductions can I claim without receipts?

What expenses can I claim without receipts?Travel expenses. If you’re self-employed and use your private vehicle for work-related activities – such as traveling between job sites or offices – don’t worry, you won’t need to hoard all your fuel receipts.
Uniforms and clothing.
Home office expenses.
Good record keeping = simpler tax return.

For paper registration, download the Business Registration Form (R-1) to mail in or fax. If The Latest Tax News and Information this law change affects you, you must identify whether you are a marketplace facilitator.

Federal Tax Legislation

There have been no changes affecting personal exemptions on the Maryland returns. Take back your hard-earned cash and pay the IRS only what you have to. Use this free quiz to help you decide which tax filing method is right for you. You pick your hours, your business clients and basically everything else! There areplenty of other deductionsand credits that might be up for grabs depending on your situation!

For 2021, taxpayers can use their 2019 income if it was higher than 2021. The reason for this is that, like last year, the Department of Taxation is hiring fewer hourly employees during the busy filing season to process paper returns due to the budget issues facing the Commonwealth. assets = liabilities + equity Processing paper returns is much more costly than processing returns filed over the Internet. RICHMOND, Va. – The Department of Taxation’s (TAX’s) innovative system of evaluating individual tax refunds has won accolades from the national Federation of Tax Administrators.

If you can’t get out to the stores, but still want to shop and save, online purchases of qualifying items are also tax-exempt during the sales tax holiday. “This is the most universal of Virginia’s three sales tax holidays, so it’s been very popular among both consumers and businesses in Virginia,” said Tax Commissioner Craig Burns. For the ninth straight year, many clothing items, footwear, and school and office supplies will be sales tax-free during the first full weekend in August, which is Aug. 1-3 this year. “Free File is an important resource that enables eligible Virginians to receive the full amount of their well-earned tax refund,” said Gov. McAuliffe.

  • The agency’s Individual Refund Evaluation system earned TAX a share of FTA’s 2010 Outstanding Compliance Program award.
  • Once you’ve checked your supplies, make a list of what you still need and, if you’d like to save some money, do your shopping during Virginia’s Hurricane Preparedness Sales Tax Holiday, which runs May 25-31.
  • Single taxpayers with AGI under $75,000 will receive a $1,400 refundable tax credit, while joint filers with AGI under $150,000 will receive $2,800.
  • IR , March 16, 2021 — The Internal Revenue Service today reminded taxpayers about the rules for required minimum distributions from retirement accounts.
  • Anyone considering receiving their tax refund by debit card should review the fee schedule on the Department of Taxation’s website at , which also includes frequently asked questions and other information about the debit card program.
  • If you don’t qualify to file for free but you are a Virginia resident utilizing form 760 and related schedules, you can use Virginia Tax’s free fillable forms.

This scam is not related in any way to the security of the new tax refund debit card or any information that taxpayers may submit to the retained earnings balance sheet Department. The Department cautions individuals never to give personal information to anyone calling unless they can verify the source.

You have more protection for your personal, tax-related information since electronic filing is more secure than mailing your tax return. Electronic filing meets strict security guidelines to protect your tax return. To check on the status of your refund, call 804.367.2486 or use the Where’s My Refund application on the Virginia Tax website. For taxpayers who have questions, call the Virginia Tax Individual Customer Service hotline at 804.367.8031 or the Business Customer Service hotline at 804.367.8037. RICHMOND, Va. – Virginia Tax wants to remind you that starting July 1, 2020, a number of new state and local tax laws go into effect. These laws, which the Virginia General Assembly enacted during the 2019 and 2020 sessions, include changes to taxes on tobacco products, as well as the retail sales and use tax in one locality.

Like Free File, these products do the calculations for you, while navigating you through your return. RICHMOND – A new video by the Virginia Department of Taxation helps individuals choose the best way to file their 2012 income taxes electronically. The department is committed to protecting all taxpayers’ information and reducing the risk of identity theft and tax refund fraud. Because the agency is carefully reviewing all returns, it may take longer to receive refunds than in past years. See Tax-Related Identity Theft Prevention to learn what the department is doing to keep information secure and how taxpayers can protect themselves. In 2015, taxpayers filed more than 3.2 million tax returns, or about 80 percent, electronically.

Personal Exemption Amount – The exemption amount of $3,200 begins to be phased out if your federal adjusted gross income is more than $100,000 ($150,000 for joint taxpayers). The $3,200 exemption is phased out entirely when the income exceeds $150,000 ($200,000 for joint taxpayers). See Instruction 10 in the Resident tax booklet for the reduced amounts, or review the page, Determine Your Personal Income Tax Exemptions.

To avoid penalties, you’ll need to pay at least 90% of your tax liability on or before June 1 and pay any outstanding tax liability with a return filed by the extended due date. The Government Accountability Office reports that almost half a million taxpayers did not receive their entire stimulus payment amounts due to distributing complications related to those who have dependents but filed simple/stimulus tax returns. They also report that the IRS had challenges contacting individuals who do not usually file tax returns, as well as those without permanent residences, bank accounts, and internet access. The IRS and Treasury Department stated that taxpayers who filed returns with properly claimed dependents and were received after May 17 were given the correct stimulus payment amount.

Author: Mary Fortune

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