2020 Tax Filing Season Opens on January 15, 2021

Tax Changes and Key Amounts for the 2020 Tax Year

By: Joy Taylor | Kiplinger

Americans are facing a long list of tax changes for the 2020 tax year. Get familiar with them now so you're ready when it's time to file your 2020 tax return.

We were expecting 2020 to be a quiet year in terms of tax law changes. But, boy, were we ever wrong! The government funding bills signed by President Trump in December 2019 included a lot of tax provisions. The economic stimulus packages enacted in March 2020 to help boost the U.S. economy dragged down by the coronavirus added more. Plus, there are several other 2020 tweaks from new rules or annual inflation adjustments. All in all, this means American taxpayers are staring at a long list of tax changes for the 2020 tax year.

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What Are the Income Tax Brackets for 2020?

By: Rocky Mengle | Kiplinger

Depending on your taxable income, you can end up in one of seven different federal income tax brackets – each with its own marginal tax rate.

It's never too early to start thinking about your next tax return. For most Americans, that'll be your federal tax return for the 2020 tax year — which, by the way, will be due on April 15, 2021 (or October 15, 2021, if extended). The 2020 tax rates themselves are the same as the rates in effect for the 2019 tax year: 10%, 12%, 22%, 24%, 32%, 35% and 37%. However, as they are every year, the 2020 tax brackets were adjusted to account for inflation. That means you could wind up in a different tax bracket when you file your 2020 return than the bracket you were in before – which also means you'll be paying a different tax rate on some of your income.

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IRS provides tax inflation adjustments for tax year 2020

By: IRS.GOV

WASHINGTON — The Internal Revenue Service today announced the tax year 2020 annual inflation adjustments for more than 60 tax provisions, including the tax rate schedules and other tax changes. Revenue Procedure 2019-44 PDF provides details about these annual adjustments.

The tax law change covered in the revenue procedure was added by the Taxpayer First Act of 2019, which increased the failure to file penalty to $330 for returns due after the end of 2019. The new penalty will be adjusted for inflation beginning with tax year 2021.

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Looking for a EASIER way to file taxes?
 
P&D Tax Pros are here to make filing your taxes as easy as 1-2-3!
 

P&D Tax Pros has made things easy when it comes to tax preparation. No more sitting in long lines, making appointments around your busy schedule and waiting weeks to get your refund! All you have to do is:

 

  1. Fill out the form with all your information and attach the documents needed. Include your AGI (Adjusted Gross Incomes) or #PIN from your previous tax year.

  2. Sign the authorization form.

  3. Collect your refund!

 

P&D TAx Pros takes pride in getting you back the most refund possible. We specialize in taxes for Military service men, women and their families, overseas contractors, virtual assistants and homebased businesses. We also offer other services such as bookkeeping, payroll and administrative.

 

For more information on our tax services or the other services that we offer please feel free to contact us!

Services
  • ​Tax

  • Bookkeeping / Payroll

  • Admin

  • Referral Program

News

Here’s what taxpayers can do now to Get Ready to file taxes in 2021

Check their withholding and make any adjustments soon.

Since most taxpayers typically only have a few pay dates left this year, checking their withholding soon is especially important. It's even more important for those who:

 

Nov. 21 deadline nears to register online for Economic Impact Payment; Some people can claim special credit next tax filing season

The Internal Revenue Service today reminded anyone who doesn't normally file a tax return that they have until 3 p.m. EST this Saturday, November 21, to register with the IRS for an Economic Impact Payment (EIP).

Inside IRS Operations to Handle COVID and the 2020 Filing Season

Last year at this time, our workforce had no idea how their best-laid plans for the 2020 Filing Season would drastically change. 2020 turned into a filing season and a year like no other.

Tax Year 2020: Changes to IRS Form 1040

The IRS recently released a draft of Form 1040, U.S. Individual Income Tax Return. Here is a look at some of the most significant changes proposed for tax year 2020 (returns filed in 2021). Please note: The information below is subject to change. The draft of Form 1040 should not be used to file your clients’ taxes. 

Tax Changes and Key Amounts for the 2020 Tax Year

Americans are facing a long list of tax changes for the 2020 tax year...and it's never too early to start thinking about next year's return.


What you need to file taxes:
 
New Clients
 
  • Driver License or another form of government picture ID.

  • Social Security Cards & Birth Certificates for all persons on your tax return.

  • Tax return copies for the last 3 years.

All Clients

 

  • Social Security Cards & Birth Certificates for new additions on your tax return.

  • A check from your bank account marked "void" to use for electronic deposit of refunds or to pay any tax due (only if a change from last year).

  • W2 forms and last pay stubs for each job you held during the year.

  • 1099 forms for interest, dividends, social security, investment sales unemployment, other income, etc. 

  • Year-end brokerage statements for stocks & mutual funds, etc.

  • Purchase & sale information on any stocks or mutual funds you sold.

  • Self-Employment income & expense records and reports.

  • Rental income & expense records and reports.

  • Records or details of any other income received during the year.

  • Mileage Log for business, job, or charitable purposes. Including ending odometer reading & total mileage driven during the year.

  • IRA & retirement statements.

  • Records of Medical expenses, Real Estate taxes & Mortgage interest paid during the year.

  • Records of cash charitable contributions made during the year.

  • Records of non-cash charitable contributions - Salvation Army, Rescue Mission, Mom's House, etc.

  • Records of any job-related expenses.

  • Form 1098T and amounts paid for higher education or trade schools.

  • Child & dependent care info - payments to babysitters, day camps, child care centers. Address & Federal ID Number of your provider. 

  • K1 forms for any Partnerships, LLCs, S-Corps, Estates, Trusts, etc.

  • Records of estimated tax payments made for the tax year.

  • Agreement papers if recently-separated.

  • Divorce decree or agreement papers if previously married. 

  • Your child's or dependents income information.

  • PROOF OF HEALTH INSURANCE for all persons listed on your return

How to file taxes with P&D Tax Pros?
  • PLEASE USE THE SECURE FORM BELOW or FAX YOUR INFORMATION TO (660) 460-8028 BE SURE TO INCLUDE YOUR AGI; ADJUSTED GROSS INCOME OR PIN# FROM LAST YEAR’S TAX RETURN

  • You can also fax or email to submit your W-2′s and we will process your taxes and email your taxes to you to sign documents then submit. 

  • If you are a business please click on the business tab to fill out your expenses for your corporation, small business, or 1099 misc.