On March 17th, the IRS announced they would be extending the 2020 tax filing deadline for individuals from April 15th to May 17th to accommodate the ongoing challenges presented by the COVID-19 pandemic. At Greenspring, we welcome this extension as it provides our clients with extra time to carefully review their 2020 taxes to ensure they are maximizing their options.
With an extra month to file, there are many things to consider regarding your 2020 taxes. Below is a helpful checklist for those who have yet to file:
2020 Taxes Checklist
- Did you make your IRA contributions (if you are eligible)? If not, you now have an extra month to make contributions for 2020. You can contribute up to $6,000 to a traditional or Roth IRA ($7,000 if you’re over 50). If you are self-employed, you may be able to establish and/or contribute to a retirement plan for your business by the new tax filing deadline.
- Did you max out your HSA in 2020 (if you are eligible for an HSA)? If not, you have an extra month to make your 2020 HSA contribution.
- Do you owe taxes for 2020? The IRS has now given you an extra month to determine the best way make the payments.
- Do you know whether you are itemizing deductions or taking the standard deduction? The deadline extension gives you more time to tally up your potential itemized deductions and determine the best course of action.
- Do you have all your documents in order? If not, you have an extra month to make sure you have all applicable tax forms that you need (W-2s, 1099s, K-1s, etc.)
- Are you owed a refund for 2020? Don’t wait to file!
- Did your state also extend their tax filing deadline? While the IRS guidance extends the federal tax filing deadline to May 17th, it does not affect your state’s tax filing deadline. You can use this resource to find specific information about your state’s deadline so you do not miss filing you state taxes on time: https://www.taxadmin.org/state-tax-agencies
All set for 2020? Here are some things to consider for 2021!
- Do you make estimated tax payments? You still need to make you Q1 payments by April 15th!
- Did you review your W-4 tax withholdings and make any updates that were needed?
- Did you update your HSA contributions to the new 2021 maximum? For 2021, HSA maximums were increased to $3600 for individuals, $7200 for families.
- Did you review and/or increase your 401(k)/403(b) contributions?
- Have you reviewed the provisions of the America Rescue Plan Act of 2021 to determine the impact on your tax situation (i.e. the increased child tax credits)?
Have additional questions? Reach out to your advisor directly or get in touch with us at www.greenspringadvisors.com.
Information contained herein has been obtained from sources considered reliable, but its accuracy and completeness are not guaranteed. It is not intended as the primary basis for financial planning or investment decisions and should not be construed as advice meeting the particular investment needs of any investor. This material has been prepared for information purposes only and is not a solicitation or an offer to buy any security or instrument or to participate in any trading strategy. Past performance is no guarantee of future results.