Getting Ready for 2020 taxes

Check tax withholdings now to avoid large payments with your next tax return

To avoid a surprise when filing next year, now is the time to review your tax withholdings and payments. An adjustment or two made now may boost take home pay or allow taxpayers to pay more in the last quarter of 2020 to avoid a surprise tax bill.

Some things to consider that will affect taxes owed in 2020 include:

• Coronavirus tax relief – tax help for taxpayers, business, tax exempt organizations and others – including health plans – affected by coronavirus (COVID-19)

• Life changes such as marriage or childbirth – Getting married or having a child are just a couple of the life events that can affect your refund or how much you owe.

• Disasters such as wildfires and hurricanes – Special tax law provisions may help taxpayers and businesses recover financially from the impact of a disaster, especially when the federal government declares their location to be a major disaster area.

• Workers moving into the ‘gig’ economy – the IRS advises people earning income in the gig economy (reported by 1099) to consider quarterly estimated tax payments to stay current.

• Unemployment compensation – Millions of Americans got taxable unemployment compensation. Taxes can be withheld from the Unemployment Compensation benefits or estimated payments can be paid to avoid a surprising tax bill.

• Job Loss – IRS Publication 4128, Tax Impact of Job Loss, explains how this unfortunate circumstance can create new tax issues.

To schedule your appointment, please call our office and our receptionist will assist with scheduling your initial consultation. (805) 495-4211

Steven Z. Freeman, CPA and the staff at Freeman and Associates provides Business Services, Tax Planning, Entity Formation plus Maintenance, and Accounting Services and can assist you with these services. If you have any questions on this matter, or to schedule an initial consultation

Please contact us at (805) 495-4211 or Steve@FreemanAssoc.net

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