2020 Tax Tips !

It’s that most wonderful time of the year again and tax season is in full swing!  By now, you should have received almost all of your necessary documents. As you put together the finishing touches and tie up the loose ends, here are a few things to remember:

  1. Even if you do not itemize your taxes, you can still deduct up to $300 of cash contributions that you made to charity.  This $300 is for cash contributions only, so the 60 pounds of children’s clothing I donated to Goodwill will not help me, or you.
  2. If you contributed to a 529 college savings plan (particularly NY), you will not get a separate tax form, like a 1099 that you would from a bank account.  You can use your end of year statement as proof that you made qualifying contributions during the tax year.
  3. If you made improvements to your home including windows, doors, solar panels, energy efficient furnace or hot water heater, you may be eligible for an energy property credit.  Call the company who did the installation or check credit card statements if you can’t locate the original receipt.
  4. It’s not too late to fund your IRA and Roth IRA!  You have until April 15th, or when you file your return, to make contributions to your Roth (and IRA).  For those who ended up with some extra cash in savings because of a lack of mobility and normal life during 2020, now is a great time to think about putting that savings to work in a retirement account.
  5. Calling all educators!! You can still deduct up to $250 of unreimbursed expenses ($500 for married joint and both spouses in education).  After all the hard work, this is the least you should get, so don’t miss out on it!

In the past three years we have seen an absolute whipsaw of tax changes and new legislative curveballs.  I don’t expect anything different for 2021, and I will do my best to shine a spotlight on those changes as they become the new tax law of the land.

Happy Friday! Please stay healthy and be safe!