Allowance of distributions from retirement accounts limited to $100k or less without penalty due to age.
Above the line deduction of $300 for charitable contributions for those who do not itemize their deductions.
The medical expense deduction remains at 7.5 % of income.
It is important that clients submit pertinent deductions to the office.
In some situations, especially for Maryland residents it may make sense to itemize on federal returns even if deductions are below the threshold to save on state income taxes.
The single greatest tax “loophole” for most taxpayers is the deferral of up to$19,500 in your retirement plan through your employer with a catch-up contribution of up to $6,500 if you are over 50.
The Internal Revenue Service announced that the nation's tax season will start on Friday, February 12, 2021, when the tax agency will begin accepting and processing 2020 tax year returns.
April 15, 2021 is the deadline for filing 2020 tax returns.
Bracey's Professional Tax Service, Inc.
9604 Spinnaker Street, Suite #100, Cheltenham, Maryland 20623, United States
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