Three Key Things to Consider When Filing Your 2020 Tax Return

Feb 01, 2021

#1 - Charitable deductions for everyone

  • In the current year, even if you take the standard deduction, you can still take a charitable deduction on your tax return.

  • For amounts totaling up to $300 of cash contributions made in 2020 to qualifying organizations a deduction can be made.

#2 - Recovery rebate credit

  • During 2020, the Federal government gave stimulus payments to Americans who met certain requirements. If you did not receive a stimulus payment but meet any of the four basic criteria, you can be eligible for the recovery rebate credit:

    • Taxpayers who did not receive a stimulus check due to a status change from 2019 to 2020

    • Single taxpayers who received a stimulus check lower than $1200 who met all the requirements

    • Taxpayers married filing jointly for 2018 or 2019 and their stimulus check was less than $2400 who met all the other requirements

    • Taxpayers who didn’t receive an extra $500 for each qualifying child who met all the other requirements. 

#3 - Taxpayers who received stimulus checks

  • The federal government gave two stimulus payments to the majority of Americans that needed relief in the wake of the COVID-19 pandemic: one in March and the second in December. 

  • You may have received a Notice 1444, Economic Impact Payment, which is a form that notes how much money each taxpayer received in the relief legislation. This is needed to calculate any potential recovery rebate credit if the taxpayer was not given the full amount they should have been. 

  • If you were not given the full amount, you may be able to receive a credit on your 2020 tax return if you meet the requirements.  

We hope you all had a wonderful year and a great start to 2021. Do not hesitate to reach out to one of our many qualified tax professionals for further guidance on filing your 2020 tax returns!

Contributing Author:

Kylie Tran | Email  |  LinkedIn

Kylie has been part of the SGA team since January 2020. She graduated in 2019 with a Bachelor of Science from Rutgers University. Her primary responsibility is tax preparation, but she also has experience in auditing and payroll. Outside of work, Kylie enjoys hiking in national parks, trying new foods, doing jigsaw puzzles, and spending time with her two cats.