Man, 2020 is a year to forget. COVID-19 has affected all of us in some way or another. The pandemic kept Congress busy. They passed a number of laws that benefited businesses and individuals that suffered financial hardships due to COVID-19. Lots of things happened in 2020 that might affect your taxes.
INDIVIDUALS Unemployment Income
wasn’t sufficient, and If you took the extra $600 weekly federal pandemic benefits you would have needed even more withholding.
Retirement Plan Distributions Another change due to the pandemic would be the required minimum distribution (RMD) for 2020. Not taking your distribution might not be the best tax move. With this rule in place, you might be able to determine an amount that will result in no or minimal taxes.
For Individual you want to consider if you Disaster Loss received unemployment income this year? Unemployment income is taxable at the federal Disaster losses have special rules and the and state levels. This means you might have calculation can be very involved. It is often an unpleasant surprise at the end of the year. very different than what you expected. This is Especially if the tax withheld from the payment something you will probably want to get help 44 February 2021
