Don't Rush Filing Your Taxes Yet
There is a lot happening in Washington DC right now. My advice, don’t rush filing those taxes. Here’s why...
Let’s Take A Pause
As we trudge on through another tax season, the first one during a massive global pandemic, we find a lot of things still up in the air and being discussed in Washington DC right now. As a CPA still actively working on my clients taxes, I felt the need to pause my recent conversation about pricing to provide some insight into these recent possible changes and how they may affect you.
Before We Get In Too Deep… Disclaimer
I just want to add this little disclaimer so that other accountants do not hate me… You still need to get all of your tax information and records over to your accountant in a timely manner so that they can have adequate time to prepare your return and check it for accuracy.
That Being Said
There are several of my clients' returns that I am actually waiting on submitting for the next week or two while I am actively watching these new developments, and I would highly recommend you consider doing the same and here are three reasons why…
Unemployment- There is a portion of the newly proposed bill (currently in congress, as of the writing of this article) that would make a portion of those payments nontaxable. If you do file, claiming that unemployment income, then the only way to be able to get that tax credit would be to amend your return, which can be costly, stressful, and time consuming.
If you have children under the age of 17- In this proposed bill, there is also a provision that would increase the child tax credit for this year. Again, the only way to receive that credit, if you do not choose to wait, would be to go back and amend your return.
If you were the recipient of a PPP loan/grant, certain states are still finalizing the taxability of those payments or the expenses that those payments covered.
I will be back with more updates as we follow the movement of this new bill. Until then, check out the full video where I discuss this topic. Don’t forget to subscribe to my channel for new updates and insights.