Top 5 Things To Ask About For Your 2020 Return

As we move into a new year, tax returns will come due and like every year there are some new issues to keep in mind. For your 2020 return, there are some very specific issues that should be asked about when you’re meeting with your accountant or tax preparation professional. Here are a “Top 5” to consider.

  • Everyone gets to claim a cash donation, even without reaching large amounts. The donation allowed is $300 ($600 for married couples) for all tax returns. Must be cash and not an in-kind donation. You must have a receipt present.
  • No required minimum distribution for 2020 on your retirement accounts.
  • No 10% penalty on withdrawals for retirement accounts provided you were affected by COVID and needed the money, which is a very broad category for qualification.
  • Unemployment is taxable for both federal and state and should be brought up to your tax professional.
  • Economic Impact Payments are not taxable but will be reported on your 2020 tax return, so need to be brought up to your tax professional.

Jonna Albert – Owner and Tax Accountant

Jonna D. Albert Accounting & Tax, LLC