UPDATES for the 2020 Tax Season

We will list any updates/changes to the current tax laws here as soon as we are made aware!  Check back periodically for additional updates.

 

Unemployment

Due to this unprecedented year, be sure to include all documents such as unemployment (Form 1099-G) and if you took out any distributions you will receive a 1099-R form. 

Form 1099-G can be downloaded from the state website in which you go to certify your weekly benefits (labor.ny.gov/signin)

Be sure to list any changes to your work location (list this information on the updated client contact sheet).  

____________________________________________________________

The 2020 tax deadline has been extended to May 17, 2020

 

*Please note that if estimated tax payments are needed they will still be due by the April 15th deadline date*

____________________________________________________________

 

*STIMULUS CHECKS:

For those who have not received their stimulus checks (if qualified) there will be an IRS Recovery Rebate Credit on the 2020 tax filing.  You will need to specify which stimulus check(s) you have not received.

What is the Recovery Rebate Credit?

The Recovery Rebate Credit is authorized by the Coronavirus Aid, Relief, and Economic Security (CARES) Act and the COVID-related Tax Relief Act. It is a tax credit against your 2020 income tax. Generally, this credit will increase the amount of your tax refund or decrease the amount of the tax you owe.

The Recovery Rebate Credit was eligible to be paid in two rounds of advance payments during 2020 and early 2021. These advanced payments of the Recovery Rebate Credit are referred to as the first and second Economic Impact Payments.

Individuals who received the full amounts of both Economic Impact Payments do not need to complete any information about the Recovery Rebate Credit on their 2020 tax returns. They already received the full amount of the Recovery Rebate Credit as Economic Impact Payments. You received the full amounts of both Economic Impact Payments if:

  • Your first Economic Impact Payment was $1,200 ($2,400 if married filing jointly for 2020) plus $500 for each qualifying child you had in 2020; and.
  • Your second Economic Impact Payment was $600 ($1,200 if married filing jointly for 2020) plus $600 for each qualifying child you had in 2020.

Who can claim the Recovery Rebate Credit?

Eligible individuals who did not receive the full amounts of both Economic Impact Payments may claim the Recovery Rebate Credit on their 2020 Form 1040 or 1040-SR. To determine whether you are an eligible individual or the amount of your Recovery Rebate Credit, complete the Recovery Rebate Credit Worksheet in the Instructions for Form 1040 and Form 1040-SR.

Generally, you are eligible to claim the Recovery Rebate Credit if you were a U.S. citizen or U.S. resident alien in 2020, cannot be claimed as a dependent of another taxpayer for tax year 2020, and have a Social Security number valid for employment that is issued before the due date of your 2020 tax return (including extensions).

You must file Form 1040 or Form 1040-SR to claim the Recovery Rebate Credit even if you are normally not required to file a tax return. Anyone with income of $72,000 or less can file their Federal tax return electronically for free through the IRS Free File Program. Free File is a public-private partnership between the IRS and many filing and tax preparation software providers who provide their brand-name products for free. The safest and fastest way to get a tax refund is to combine electronic filing with Direct Deposit.

This will increase your refund or lower the amount of taxes you owe on your 2020 return.

____________________________________________________________