* The Internal Revenue Service correctly tells us “Unemployment compensation is taxable; have tax withheld now and avoid a tax-time surprise”.
Also - the interest you receive from the IRS for a
late-issued refund is also taxable income that must be reported on your 2020
tax returns. You will receive a Form
1099-INT from the Department of the Treasury next January.
* This blog is
mostly concerned with individual income tax issues – issues that involve the
Form 1040 (or 1040-SR). But for those
who are interested the NATP BLOG provides an “S Corporation Overview”.
* This from
the NJ Division of Taxation website regarding the Property Tax Reimbursement
(aka “Senior Freeze”) program (highlight is mine) –
“The unprecedented impact COVID-19 has had on the
economy has forced the state to freeze funding for many worthy programs,
including Senior Freeze, and prompted the extension of the budget deadline from
June 30 to September 30. Therefore, funding for Senior Freeze reimbursements
that typically occur during mid-summer is unavailable at this time. Please
check back here again in early October for possible updates.”
A reminder - in July the NJ Legislature canceled the
May Homestead Benefit appropriation.
Credits were not provided to reduce the May 1 property tax payment and
checks were not issued.
* FYI, from Ed Zollars at CURRENT FEDERAL TAX DEVELOPMENTS
- “Chair of Ways and Means Requests IRS Cease Sending Notices of Payments Due Until Mail Backlog is Resolved” -
“The IRS’s backlog in processing some mailed in
payments is something most tax professionals have dealt with in recent
weeks. Now the Chairman of the House
Ways and Means Committee, Representative Richard Neal (D-MA), has called on the
IRS to halt sending out notices demanding payment until the backlog is cleared
by the agency.”
Click here to see the letter from Neal.
* The IRS response to the last item – “IRS temporarily stops mailing notices to taxpayers with balances due”.
“The IRS has suspended the mailing of three notices
– the CP501, the CP503 and the CP504 – that go to taxpayers who have a balance
due on their taxes. Although the IRS continues to make significant reductions
in the backlog of unopened mail that developed while most IRS operations were
closed due to COVID-19, this temporary adjustment to processing is intended to
lessen any possible confusion that might be associated with delays in
processing correspondence received from taxpayers.”
* TaxGirl Kelly Phillips Erb reports “IRS Releases Draft Form 1040: Here’s What’s New For 2020” at FORBES.COM.
In addition to some changes to the numbering of
lines, the draft form includes lines for the new non-itemizer charitable deduction
and the refundable “Recovery Rebate Credit” (Recovery Rebate = 2020 Economic
Stimulus Payment).
* “SEP-IRA or Solo 401(k): Which is Better for Self-Employed?” by Roger Wohlner at THE STREET answers a question asked of my by a Schedule C client a while back.
FYI, I used to write tax articles for THE STREET - click here (a very old picture).
THE LAST WORD
Trump is a delusional moron and malignant narcissist. His ignorance, narcissism and delusions of grandeur is dangerous to America and the world.
The more I see, hear, read the tweets of, and read about Trump the more certain I am that he is the most totally worthless piece of garbage to ever hold any national public office in the history of the United States.
Anyone who affirmatively supports, defends and enables Trump is an enemy of America, American values and democracy, the American people and the world.
Period.
TTFN
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