Tax Tip of the Month: Important Reminder About New Standard Deductions for 2020
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It seems like ages ago that Congress passed the law that made sweeping changes to the U.S. tax code, but there are still some provisions of the law that are just now affecting taxpayers for the first time. One of the most significant is the change to the standard deduction for single people and married couples.
The standard deduction is the amount that every taxpayer can deduct from their income right off the bat. It's important because if the standard deduction is higher for you than whatever deductions you could get by itemizing all available deductions, then there is no need for you to itemize deductions.
For the tax year 2019, the standard deductions are as follows:
- Married filing jointly: $24,400 per couple under 65, and if either person is 65 and over add $1300 per person who is 65 and over.
- Single--$12,200 for people under 65, and add an additional $1,650 for people 65 and over
- Head of Household--$18,350 for people under 65, and add an additional $1,650 for people 65 and over
For people who are itemizing deductions instead of just taking the standard deduction, typical deductions to itemize include medical expenses, state income taxes, real estate tax, personal property tax, and mortgage interest, and charitable contributions
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Ben's youngest son Carson came home from college in France for a Christmas visit, and together they hiked to the summit of Spy Mountain in the St. Mary's Wilderness area in Nelson County (3,600 ft).
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We are excited to announce that we have hired another CPA to help out our firm during the busy tax season. Sonya Carwile, from the Charlotte Courthouse area, previously worked at a firm that was bought out by H&R Block. She will be working with us through the end of the 2020 tax season.
Also, the tax organizers have all been mailed out, so you should see your organizer arriving in your mailbox soon. If you don't, contact our office to request an organizer.
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Featured Video: Common Tax Return Mistakes
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As you start to gather the information you'll need to send us to prepare your 2019 tax return, take a moment to watch Ben's video on common mistakes people make on their tax returns.
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Featured Resource: IRS Standard Deduction Calculator
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For those of you trying to determine whether or not you should itemize deductions this year, the IRS has a useful tool--an online calculator that tells you what your standard deduction is. You simply input some information such as filing status, date of birth, and basic income information, and it will calculate the standard deduction available to you.
Click here
to use the online calculator on the IRS website.
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Featured Customer: Full Circle Schools
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Full Circle Schools
utilize the natural world to awaken the inner strengths and potential of all stakeholders. They respect and support the individual learning pace of all members. They provide educational activities that nurture the mental, emotional, physical and spiritual aspects of every person. This is modeled from Progressive Education.
The day begins with activities like Brain Gym, Yoga, and meditation that prepare the mind for learning and assist with the development of brain and body. Each day involves physical activities such as gardening, outdoor explorations and nature walkabouts that provide the framework for instruction in English, History, Math, and Science. These hands-on activities are used to develop and provide individualized instruction that addresses the personal strengths and weaknesses of each student.
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