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Tax News for 2020

Updated January 2, 2020

ATTENTION: Please be aware that there is a IRS Tax Phone Scam taking place to tax payer.

See link: http://a.msn.com/01/en-us/AAfwC84?ocid=se

REMEMBER...the IRS will NEVER call an individual

 

NOTE:

  • Starting for filing season 2020 for tax year 2019, the penalty for not having health insurance is no longer in effect.

  • Beginning January 1,2020 a new W4 form will be issued by the IRS. A taxpayer can no longer adjusted their withholdings. The IRS eliminated exemptions on the tax return which does not allow exemptions and generated the need for a new W4. A new W4 do not need to be completed for your employer. However, if you change jobs you will need to complete oneof the new W4 forms.

The IRS will begin accepting return on January 27, 2020. Please note some refunds must be held until late February.

    • If the taxpayer has the Earned Income Tax Credit (EITC) or CTC (Child Tax Credit), refunds are not processed until late February to ensure that persons claiming those credits are qualified to.

    • This applies to the entire refund, even the portion not associated with these credits.

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The deadline to file and pay your tax liability has been extended to July 15, 2020. This pertains to Maryland State Taxes as well as Personal Property Taxes. See link below to get updated information and changes due to Covid-19.

 

Ask about all common deductions that are overlooked:

  • Charitable

  • Moving Expense

  • Job Hunting

  • Military reservists' travel expense

  • Child Care

  • Mortgage Finance Points

  • Many Medical Costs

  • Retirement Savings Plan

  • Educational Expenses

  • Energy-efficient Home Improvement

 

The Social Security Administration will no longer mail out benefit statements. They are asking individual to go online to create an account. Click on the link to get started - http://www.socialsecurity.gov

 

Beginning on Jan. 1, 2020, the standard mileage rates for the use of a car, van, pickup or panel truck will be:

57.5 cents per mile for business miles driven

170 cents per mile driven for medical or moving purposes 

14 cents per mile driven in service of charitable organization

 

Click on the link below to visit the IRS website to check refunds and search for other information

 

Grant News for 2020

January 2020

The threshold for A133 audits has been increased to $750 from $500 for federal received funding.

Business/Non-Profit Tax News

January 2020

  • 990 Tax Returns are due by the fifteenth of the fifth month after the close of your tax year. For example, if your tax year ended  December 31st, your return is due by May 15th of the following year.

    • Most small tax-exempt organizations whose annual gross receipts are normally $50,000 or less are required to electronically submit Form 990-N, also known as the e-Postcard, unless they choose to file a complete Form 990 or Form 990-EZ instead.

    • An organization can request an three-month extension.

  • 1120 Tax Returns are due by the 15th of the 3rd month after the tax year end. An extension can be filed for a six month extension.

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