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dilmorerh
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Might taxpayers plan for 2020 tax returns much like 2019? Or expect big changes? Can anyone offer a knowledgeable guess?

I am asking so I can use TurboTax to estimate 2020
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2 Replies

Might taxpayers plan for 2020 tax returns much like 2019? Or expect big changes? Can anyone offer a knowledgeable guess?

As of today, there have been no changes to federal tax law.  The Democrats ran on a promise to raise taxes for "higher income taxpayers", but the earliest they could do that is January 20, 2021, and even if they did, I don't believe they could make any tax increases retroactive to 2020.  

Might taxpayers plan for 2020 tax returns much like 2019? Or expect big changes? Can anyone offer a knowledgeable guess?

About the only significant changes for 2020 I could think of:

1) ...is IF your 2020 income was below the stimulus payment cutoff, and IF you didn't receive a stimulus payment in 2020, then you might get that applied to your 2020 taxes as a credit. 

or

2)  IF you took a Covid-related distribution from retirement account in 2020, then the 10% penalty may be waived.   (could also have the payment taxed over 3 years instead of all at once)

____________*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*
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