Turner $ Thigpen Family Financial Service
T$T News Paper
IRS News
T$T News Paper
IRS News
Latest News
Latest News
Stimulus News Alert:
For those that have not yet received their EIP2 payment, there is a subset of payments that were directed to closed accounts – your customer’s payment may have been caught up in that group. The IRS will now be processing those payments so taxpayers will receive them by February 1st.
Your customers’ EIP2 stimulus payments will be processed by IRS and sent via your customers’ bank accounts or by check by February 1st based on the information you provided with their 2019 tax return.
Once payments are made by IRS, the Get My Payment tool on the IRS website will be updated to reflect the payment amount after February 1st.
Banks or tax preparers DO NOT have the funds – the US Treasury has the money and will be delivering it to taxpayers through the IRS process as stated above.
Tax Withholding
Tax Withholding
The Tax Cuts and Jobs Act changed the way tax is calculated. The IRS encourages taxpayers to perform a quick “paycheck checkup” by using the Withholding Estimator to check if they have the right amount of withholding for their personal situation.
Tax Tips
Tax Tips
COVID Tax Tip 2020-172, December 16, 2020
When people get ready to file their federal tax return there are new things to consider when it comes to which credits to claim and what deductions to take. These things can affect the size of any refund the taxpayer may receive.
Here are some new key things people should consider when filing their 2020 tax return.
Recovery rebate credit
Taxpayers may be able to claim the recovery rebate credit if they met the eligibility requirements in 2020 and one of the following applies to them:
They didn't receive an Economic Impact Payment in 2020.
They are single and their payment was less than $1,200.
They are married, filed jointly for 2018 or 2019 and their payment was less than $2,400.
They didn't receive $500 for each qualifying child.
Refund interest payment
People who received a federal tax refund in 2020 may have been paid interest. The IRS sent interest payments to individual taxpayers who timely filed their 2019 federal income tax returns and received refunds. Most interest payments were received separately from tax refunds. Interest payments are taxable and must be reported on 2020 federal income tax returns. In January 2021, the IRS will send a Form 1099-INT, Interest Income, to anyone who received interest of at least $10.
New charitable deduction allowance
New this year, taxpayers who don't itemize deductions can take a charitable deduction of up to $300 for cash contributions made in 2020 to qualifying organizations. For more information, people should review Publication 526, Charita
Child Tax Credit and Credit for Other Dependents at a Glance
Child Tax Credit and Credit for Other Dependents at a Glance
Child Tax Credit
Beginning with Tax Year 2018, you may able to claim the Child Tax Credit if you have a qualifying child under the age of 17 and meet other qualifications. The maximum amount per qualifying child is $2,000. Up to $1,400 of the credit can be refundable for each qualifying child as the Additional Child Tax Credit. A refundable tax credit may give you a refund even if you don’t owe any tax.
Your qualifying child must have a Social Security Number issued by the Social Security Administration before the due date of your tax return (including extensions) to be claimed as a qualifying child for the Child Tax Credit or Additional Child Tax Credit.
Credit for Other Dependents
Dependents who can’t be claimed for the Child Tax Credit may still qualify you for the Credit for Other Dependents. This is a non-refundable tax credit of up to $500 per qualifying person. The qualifying dependent must be a U.S. citizen, U.S. national, or U.S. resident alien.
Environment
Environment
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