The Latest Tax News

“The hardest thing in the world to understand is the income tax.” ~Albert Einstein

2020 Tax News

The Tax Cuts and Jobs Act was passed and signed into law on December 22, 2017, was effective for the 2018 tax year. The Tax Cuts and Jobs Act of 2017 made significant changes to the tax code affecting individuals, businesses, and tax-exempt organizations. It was the first major tax reform legislation in more than 30 years. Click here for more information for individuals. Click here for more information for corporations.

Tax News and Industry Updates

Check back quarterly for newsletters added with information about new tax-related legislation, laws, news, and more. For information on specific tax topics, such as Estimated Taxes, Tax Facts and Figures, and many more, visit our Resources page.

Past newsletters: January 2020 newsletter, April 2020 newsletter. and June 2020 newsletter.

Click on each link below for more information you can use:

Arizona 2020 Tax Returns

For 2020, the Arizona standard deduction is expected to match the Federal standard deduction. Taxpayers may still end up itemizing for Arizona because medical expenses are still not limited to 10% of Adjusted Gross Income, as they are on the Federal itemized schedule. Further, the exemptions for dependents are being replaced by a tax credit. All in all, the changes could provide a 27% tax cut for the average Arizona tax filer!

Filing Deadlines

The IRS has not yet confirmed the 2020 filing dates in 2021. It is best to assume the dates will be as they have always been, outlined below. If there are changes to this, we will post them here.

W-2, 1099-MISC, and Partnership

Business owners and rental property owners who pay employees or vendors will now have to file with the IRS by January 31. The Forms W-2 and 1099-MISC previously had to be mailed to employees or vendors by then, but could be sent to the IRS later. Both deadlines are now January 31, to make it easier for the IRS to detect and prevent fraud. Partnership returns are due on March 15. Late filing penalties have increased, and can be significant, so plan ahead.

Foreign Financial Account Reporting (FBAR and FinCEN)

The filing deadline is April 15, unless you live outside the US. An extension is available for six-months, the same as for individual tax returns.

Arizona Tax Credits for 2020

Even though most of the deadlines for the Arizona Tax Credits are April 15, 2021, we recommend making your donations by December 31, 2020 to make your record keeping easier.

Arizona Qualifying Charitable Organization Tax Credit

These non-refundable Arizona Tax Credits will be applied to your total Arizona income tax for 2020 and reduce the tax. If the credits are not fully used, they will carryover to 2021 (5 years total carryforward). 

Contributions to Qualifying Charitable Organizations (QCO) $400/single; $800/married and Qualifying Foster Care Charitable Organizations (QFCO) $500/single; $1,000/married

Click here and scroll down to Lists of Qualifying Charitable and Qualifying Foster Care Charitable organizations.

Your choice or please consider St. Mary’s Food Bank and Free Arts for Abused Children of Arizona.

Credit for Contributions made or Fees Paid to a Public School $200/single; $400/married

Click here and scroll down to the Resources section for a list of schools.

Your choice or please consider Desert Marigold School.

School Tuition Organization (STO) tax credit (original credit) $569/single; $1,186/married
Switcher Individual Income Tax Credit (additional credit) $566/single; $1,131/married

If you contribute the maximum STO amount, you can also contribute to the Switcher credit.

Click here and scroll down for the list of STO schools.

Please don’t hesitate to call or email us with questions or for additional strategies on reducing your tax bill. We’d be glad to set up a planning meeting or assist you in any other way that we can.

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