Federal Tax

IRS Tax Season Points

As tax season kicks off on Feb. 12, 2021, the IRS wants to remind taxpayers of some points they might miss. For example, taxpayers who received interest income (of at least $10) from the IRS will be sent a Form 1099-INT, which must be reported on the 2020 tax return. Many received this income related to last year’s delayed filing deadline (to July 15, 2020, related to COVID-19). Generally, taxpayers who claim the standard deductions on their federal tax returns can’t deduct charitable donations. But thanks to the CARES Act, taxpayers can deduct up to $300 in donations to qualified charities on their 2020 federal returns, even if they claim the standard deduction. Contact us with any tax questions or for more information. © 2021