2020 Individual Tax Filing Update
Two items of interest that I want to make:
First, there is a lot of talk about the filing deadline being extended to July 15th like what happened in 2020. We will have to wait and see what happens because last year we did not get official notice of the extended deadline until March. We will keep everyone posted when we know something officially.
Second, could it be a mistake to file your 2020 taxes early? It might be. In Washington the Congress are discussing another round of stimulus payments for individuals. If there is another stimulus payment approved, it will be based on the income reported on the last tax return you filed (2019 or 2020). So, if your income is higher in 2020 than it was in 2019 you should probably wait to file. The drawback to waiting is that you will also be waiting for you refund. But if your income is higher in 2020 you might reduce the amount of your stimulus payment. On the other hand, if your 2020 income is lower you might increase your stimulus payment amount by filing before Congress passes another stimulus package.
We are staying on top of this for you and will update you when we know more.