File Your 2020 Taxes On Time
As of this writing, returns for 2020 taxes are due on April 15th. It’s possible that the pandemic will shake things up again, but even if it does, the tips below will help you file on time and get the most out of the 2020 tax year.
5 Things to Do Before You File 2020 Taxes
Make your final tax-deferred contribution.
You can contribute to your traditional IRA until April 15. If you’re over 50, your maximum contribution is $7,000, and if you’re under 50, it’s $6,000. If you’re a small-business owner with a Keogh or SEP IRA, you have until Oct. 15 to contribute up to $57,000 to your plan.
Spend any funds remaining in your Flexible Spending Account (FSA).
These employer programs are “use it or lose it,” and you can spend your funds through March 21, 2021.
Consider the home office deduction if you’re self-employed.
Using this deduction no longer impacts the tax-free status of your home sale for values of up to $250,000 (single filers) or $500,000 (married filers).
Double-check your itemizable expenses.
Even if you plan to use the standard deduction, check your itemizable expenses because they could be greater than the standard deduction, your state might allow you to deduct property taxes, and this knowledge will help you plan for the future. If you’d like, I can help you with that planning! DLJ Wealth Services, LLC is a registered investment advisor.
Consider deducting your charitable donations.
Even without itemizing, you are allowed a deduction of up to $300 for your 2020 donations to eligible charities.
Your Tax Document Checklist
Before you file, you also need to gather your documents! To find out what you need, download our free checklist at DLJTaxServices.com/TaxChkList.
Still waiting for your stimulus?
If you haven’t received your stimulus check(s), do not call the IRS. Instead, visit IRS.gov/coronavirus/Get-My-Payment or download the “IRS2GO” app. You will need your social security number/ITIN, filing status, and the exact refund amount list on your refund to log in.
Need an extension?
You’re automatically qualified for an extension through Oct. 15, if you file a Form 4868 to notify the IRS.
However, you must pay any taxes owed by April 15. For more information on how to avoid penalties, reach out to my team.