Platinum Professional Services Tax and Notary School

Adoption Credit For taxable years beginning in 2020, the maximum credit allowable is $14,300. The available adoption credit begins to phase out for taxpayers with modified adjusted gross income over $214,520 and the credit is completely phased out for taxpayers with MAGI of more than $254,520

2021 tax filing season begins Feb. 12 The Internal Revenue Service announced that the nation's tax season will start on Friday, Feb. 12, 2021, when the tax agency will begin accepting and processing 2020 tax year returns. The Feb. 12 start date for individual tax return filers allows the IRS time to do additional programming and testing of IRS systems following the Dec. 27 tax law changes that provided a second round of Economic Impact Payments and other benefits.

2020 Form 1040 changes The IRS added line 30, Recovery Rebate Credit (a refundable credit) for taxpayers who did not receive their stimulus payment or were entitled to a larger payment. Reconciliation of stimulus payments will be completed on a worksheet contained in the 1040 form. Lastly, under Line 37 a note has been added that refers to the Cares Act, where employers can defer deposits and payment of the employer's share of social security tax that would otherwise be required to be made between March 27, 2020 and December 31, 2020. This deferred amount will be reported in the Payment section of Form 1040 Schedule 3, Line 12e as a "deferral for certain Schedule H and SE filers."

Happy New Year to all of our customers!

2020 Form 1040 Changes The IRS simplified withholding reconciliations by separating withholdings into three lines; line 25a - Withholdings from Form W-2, line 25b - Withholdings from Form 1099, and line 25c - Withholdings from other forms.

More Changes to Form 1040 For taxpayers taking the standard deduction, the IRS added line 10b to report charitable cash contributions up to $300 that will be treated as above-the-line deductions.