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The Stimulus Payment

IRS Notice 1444 – Keep it If you received a Stimulus payment in 2020 you should have received a Notice 1444 from the White House. It looks like a letter and shows how much you received. Hold onto this notice and provide it to us when we are preparing your tax return for 2020. You […]

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Cares Act

Following are some provisions in the Cares Act: Changes related to distributions from retirement accounts The tax can be paid ratably over a 3 year period instead of all in the year of distribution The 10% early withdrawal penalty is waived for distributions up to $100,000 for coronavirus related purposes during 2020 The purposes include […]

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Child Tax Credit

Taxpayers may be able to claim the child tax credit if they have a qualifying child under the age of 17. Part of this credit can be refundable, so it may give a taxpayer a refund even if they don’t owe any tax. The taxpayer’s qualifying child must have a Social Security number issued by […]

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Benefits to Direct Deposit Income Tax Refunds

Are you expecting a income tax refund. There are benefits to choosing direct deposit for your refund as opposed to a refund by check. Here are 10 quick facts about direct deposit. It’s the best and fastest way for taxpayers to get their tax refund. It’s free. It’s secure. Combining direct deposit with IRS e-file […]

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Don’t Lose Your FSA Funds

Do you hold a Flexible Spending Account (FSA) for health care expenses? If so, you will need to incur qualifying expenses by December 31st in order to use remaining funds in your FSA account. An FSA allows employees to use tax free dollars to pay medical expenses not covered by other health plans. For 2019, […]

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FAFSA Application is Open

The Free Application for Federal Student Aid (FAFSA) is now available for the 2020 – 2021 school year. The FAFSA form is completed for current and incoming college students to determine eligibility for student financial aid.  It is recommended that everyone file a FAFSA, even if you are unsure if you will be eligible for […]

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Charitable Distribution from Your IRA

Due to the tax law changes implemented in 2018 that included a significant increase in the standard deduction, far fewer taxpayers are itemizing their deductions.  For most taxpayers who take the standard deduction, charitable contributions are not deductible.  However, if you are 70 1/2 or over, you may still be able to reduce your tax […]

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Tax Credits – 2020

The IRS released the inflation adjusted tax credits for 2020. See if you may qualify. Earned Income Tax Credit – This is a refundable tax credit for those with earned income that meet the eligibility requirements. The maximum Earned Income Credit for 2020 is $6,660 for qualifying taxpayers who have three or more qualifying children, […]

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2020 Retirement Savings Accounts

Are you dreaming about your retirement? It is important to save for your golden years so your golden years are golden. The IRS has increased contribution limits for various retirement savings accounts for 2020. Here are some key figures: 401(k), 403(b), most 457 plans and the federal government’s Thrift Savings Plan The 2020 contribution limit […]

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Key Social Security Figures – 2020

The Social Security Administration released key figures for 2020. Social Security and Supplemental Security Income Benefits – Social Security and Supplemental Security Income recipients should see an increase in their benefits for 2020.  Social Security and Supplemental Security Income (SSI) benefits for nearly 69 million Americans will increase 1.6 percent in 2020.  The 1.6 percent […]

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