2020 was a year out of the ordinary, with ramifications that affected most aspects of our lives, including taxes. From new credits to interest payments, here are three new things you should keep in mind this year when you file your tax return.
Recovery Rebate Credit
You may be able to claim this credit if you met the eligibility requirements for an Economic Impact Payment in 2020 and one of the following applies to you:
- You didn’t receive an Economic Impact Payment in 2020.
- Your tax status is single and your payment was less than $1,200.
- You are married, filed jointly for 2018 or 2019 and your payment was less than $2,400.
- You didn’t receive $500 for each qualifying child.
Refund Interest Payment
If you received a federal tax refund in 2020, keep in mind that interest payments are taxable and must be returned on your 2020 federal tax return. The IRS is already sending a form to any person who received interest payments of at least $10 during the last year.
If you don’t itemize your deductions, you can take this year a new charitable deduction of up to $300 for donations made during 2020 to qualifying institutions. If you are interested in this deduction, check out this previous post where we take a closer look at this interesting topic.
Finally, remember that you shouldn’t rely on receiving your refund by a certain date. This is particularly important if you are planning to make a big purchase or pay important bills. While the IRS processes tax returns as soon as possible, some returns require more time, so your refund may take longer than you expect.
More Tips About Taxes
These are some previous posts with useful tips to help you navigate with confidence the world of taxes:
- These are your options if you didn’t file your taxes on time
- How to start preparing your 2020 tax return
- Do you know what is your tax filing status?
- 4 Tax-related scams to avoid
- Expecting a tax refund? Here’s everything you need to know
- Remember this important thing when you get your Economic Impact Payment
Contact the Tax Experts at Delgado’s Insurance
If you are looking for assistance with your 2020 tax return in Bloomington or Riverside, at Delgado’s Insurance our mission is to help you make sense of your options to reduce your liability and maximize your deductions while staying compliant with all relevant laws and regulations.
We have locations in Riverside, California, and Bloomington, California. Contact us today by telephone (951-361-0084, 909-421-9003), email (firstname.lastname@example.org), or through our social media accounts (Facebook, Twitter) to get a free quote and learn more about our wide array of services.