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

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

dilmorerh — Mon, 09 Nov 2020 18:17:14 GMT

I am asking so I can use TurboTax to estimate 2020

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

Opus 17 — Mon, 09 Nov 2020 18:30:42 GMT

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.

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

SteamTrain — Mon, 09 Nov 2020 18:55:15 GMT

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.

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)