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July 06, 2020 | Posted in:

Summer 2020 Tax Deadlines and IRS Updates

What the IRS is Up To – Summer 2020

E-filing for amended returns

Normally, amended returns must be submitted to the IRS on paper. The agency will allow taxpayers to amend their 2019 return electronically this summer using Form 1040X.

New W-4 Form

The IRS has redesigned Form W-4 to reduce complexity and improve accuracy. You should be updating your W-4 to withhold (as closely as you can) the exact amount you owe. This will help avoid a tax bill next year or getting a tax refund, which is really an interest-free
loan to the government. The IRS Withholding Estimator Calculator on irs.gov is a great tool.

Flexibility in medical care spending

The CARES Act allows individuals in high deductible health plans (HDHP) to have telehealth and other remote care services covered through an HSA without a deductible, or with a deductible below the minimum annual deductible required. Rules to other health-related accounts have been modified to cover reimbursements for certain over-the-counter
products and medications.

2021 HSA Limits

Contribution limits for health savings accounts are increasing next year to $3,600 for individual coverage up from $3,550 for 2020, or $7,200 for family coverage up from $7,100 for 2020.

IRS opening offices

The IRS has had limited service and personnel since March, but is beginning to open offices and resume operations on a state-by-state basis. To support social distancing and speed the processing of tax returns, refunds, and payments, taxpayers are encouraged to use electronic options.

Visit irs.gov/coronavirus for the latest updates.

 

 

Upcoming Tax Deadlines

July 15, 2020

• Extended deadline to file individual, trust, and calendar-year C-Corporation returns.
• Extended deadline for making 2019 IRA contributions.
• Due date for the first and second installment of 2020 individual estimated tax.
• Annual gift tax returns are due.
• 2016 unclaimed refunds: Eligible taxpayers have until July 15, 2020 to submit 2016 tax returns.

September 15, 2020

• Third quarter individual estimated tax payments for 2020 are due.
• Deadline to file 2019 S-Corporation and partnership returns on automatic extension.

October 15, 2020

• Deadline to file 2019 individual, trust and calendar-year C-Corporation returns on automatic extension.

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