2021 Tax Filing Season is Here!

Today is the official start of the 2021 filing season for the tax year 2020 tax returns.

Are you prepared to file your tax return? This checklist will help you prior to filing your tax return: https://www.ccltax.com/s/Tax-Preparation-Checklist-2020.pdf

Ready to file? Download our mobile app today: https://taxestogo.com/App/Download/2117
To learn more about TaxesToGo mobile app, click https://www.ccltax.com/taxestogo

What’s New?

Consolidated Appropriations Act, 2021 which was signed into law by the President on December 27, 2020 contains several provisions that may affect a tax return. Taxpayers can use their 2019 earned income to calculate the earned income credit and/or additional child tax credit on their 2020 tax return if their 2019 earned income was more than their 2020 earned income.

Recovery Rebate Credit allows eligible individuals who did not receive an economic impact payment in 2020 or was sent a payment that was less than the amount that they will be eligible to receive based on their 2020 tax information.

Qualified Coronavirus-Related Distributions - One of the biggest changes for 2020 will affect taxpayers receiving an early distribution from a retirement plan. Normally an early distribution has adverse consequences for the taxpayer. The taxpayer usually pays a 10% early withdrawal penalty and includes the entire distribution amount in their taxable income. For many taxpayers, early re-tirement plan distributions will be treated less harshly in 2020.

CARES Act allows all employers to defer over the next two years the payment of some of their tax obligations that otherwise would have been due during 2020. A businesses that has employees can defer 50% of the employer portion of the Social Security tax that was due on any wages paid after March 27, 2020. This deferral is reported by employers when the business files Form 941—Employer’s Quarterly Tax Return for the relevant time period in 2020.