Emergent Tax Season Developments – the IRS just announced an automatic extension of the 2020 filing deadline for individual tax returns to May 17th. This extension of time means that you can file timely by the 17th of May, as well as pay your taxes owing by this date. It does not mean however that you can delay your 1st estimated tax payment, which is still due on the 15th of April, for those who pay their taxes during the year by quarterly installment payments, rather than through FIT withholding from income.
Two additional important considerations for the 2020 tax year due to COVID relief have to do with economic impact payments, and charitable donations. For those taxpayers who did not receive their full economic impact payments (EIP), which for most taxpayers was $1,200 per person in 2020, and $600 per person in early 2021, a tax credit can be requested with the filing of their 2020 tax return, in order to recover the EIP. Additionally, for those taxpayers who made charitable contributions of at least $300 last year to qualifying charitable entities, the taxpayer may claim an “above the line” tax deduction on their 2020 tax return, which will directly offset taxable income, without itemizing deductions.
Please contact our office if you have questions about any of these developments, and thank you for your patience, as we work with you to prepare your income tax returns and help you navigate through these and many other recent tax law changes,
Mike, Kristy, Victoria, Maria and Heather
Wittenberg CPA, PS
329 W. Railroad Avenue, Suite 200
P.O. Box 1783
Shelton, WA 98584
Ph (360) 426-0230 Fx (360) 426-1464
1401 4th Avenue E., Suite 201
Olympia, WA 98506
Ph (360-350-4460 Fx (360) 338-0269