Tax Tips
As you all know, the 2020 tax season us upon us. The IRS opened up their electronic filing system on February 12th, meaning that you can now file your 2020 taxes. We wanted to share with you items from our 1040 checklist and make sure that you are looking at this.
- If you switch from CPA firm to CPA firm, or from tax software to tax software, it is important to make sure any losses on stock sales carry over from your prior year. If you forget this, you could be missing out on a $3,000 deduction every year until the capital loss is exhausted.
- For 2020 be sure to keep track of your charitable donations. Even if you take the standard deduction in 2020, you can still get a $300 deduction for donating to charity.
- If you are self-employed, be sure to keep track of all money spent on your business, in the “normal course of business.” You could be missing out on significant tax deductions. Also, consider funding a SEP IRA to help shield your taxable income.
- If your main residence is in Cook County, be sure to check your county assessor’s website and verify you are claiming your Homeowner’s Exemption. If you have missed out on the prior year’s exemptions, you can go back 3 years to claim your exemption.
We hope the above-mentioned tips will help you get through the 2020 filing season! If you have additional questions, please reach out to Draus and Associates, Inc. at 224-985-3000, or visit our website at www.drausandassociates.com and fill out our contact form to schedule a call with us!
