TAX PLANNING LETTER

2020 YEAR END TAX PLANNING FOR INDIVIDUALS

If suggested end-of-year strategies are a little different this year, it’s because the year itself was different. What began as a normal filing season was extended to July 15, 2020, and other ramifications of the COVID-19 pandemic — quarantine in place, working from home, unemployment, CARES Act legislative issues, social turmoil, all with a hugely meaningful presidential election. For 2020 there is a lot to consider when reviewing year-end tax planning options that may be available to reduce your tax liability.

The following are some of the considerations we should explore when discussing the tax breaks from which you may benefit, as well as the strategies we can employ to help minimize your taxable income and resulting federal tax liability.

Effect of Cares Act Rebate on Your 2020 Tax Return
Filing Status
Standard Deduction versus Itemized Deductions
Medical Expenses, Health Savings Accounts and Flexible Savings Accounts
Charitable Contributions
Expenses Incurred while working from Home (Independent Contractor)
Sale of a Home or Discharge of Qualified Home Debt
Deduction for Mortgage Insurance Premiums
Deductions for Excess Business Losses
Qualified business income passthrough
Child & Dependent Tax Credit
Education Related Deductions and Credits
Credit for Sick Leave/Family leave for Self Employed Individuals
Retirement Planning, distributions and contributions
Life Events
Impact of Future Legislation

Please call us at your convenience so we can set up an appointment (in person, zoom, or telephone) to discuss your 2020 tax return and determine if any estimated tax payments may be due before year end.

Dave Bilger CPA

Barb Soltysiak CPA