As you begin preparing your tax return for 2020, Here’s everything you’ll need to know.
Important dates in 2021
Deadline to file and pay taxes or request an extension.
Last day to file a tax return if you received an extension from the IRS.
Retirement Tax Restrictions Ease Up
Qualified Individuals who had to tap into retirement accounts early in 2020 because of the COVID-19 pandemic are getting break.
- More time to pay back early withdrawals without being taxed.
- No income tax required on money borrowed from 401(K) if paid back in five years.
- 10% penalty waived for early IRA and 401(K) withdrawals.
No Tax on Stimulus Checks
The payment many Americans received in 2020 under the Coronavirus Aid, relief, and Economic Security Act (CARES Act) – $1,200 for singles, $2,400 for couples filing jointly – was an advance distribution of a 2020 tax credit and will not be taxed.