With the myriad of tax changes this year due to the COVID-19 situation, your head might be spinning trying to keep track of them all.
But first, you may need to grab a coffee to get your mind sharp!
The federal filing deadline for returns has been extended from April 15th to July 15th. So 1 month left!
Likewise, the federal deadline for quarterly self-employment estimated tax payments has been extended to July 15th for the 1st quarter.
No tax is due on IRS stimulus payments received. Subject to certain income-limits, individuals should have received $1,200 and married couples $2,400, plus $500 per dependent. What if you were shorted a dependent? This happened to us since our 3rd child was born last year but we hadn't yet filed taxes to report her. Not to worry! The IRS will grant you a $500 credit on next year's return.
The standard deduction for married filing jointly rises to $24,800 for tax year 2020, up $400 from 2019. For single taxpayers and married individuals filing separately, the standard deduction rises to $12,400 for 2020, up $200 from 2019. For heads of households, the standard deduction will be $18,650 for tax year 2020, up $300.
My head is already spinning and now I need an espresso shot. To find more comprehensive updates and details, here are a few good resources: