Many people start planning for their taxes in the Winter months. We begin to think about taxes around the holidays and gathering our tax records towards the end of the year. You may be at home right now with lots of free time creating plenty of time to worry about what the New Year might bring. What do taxes and income look like in the year following Covid-19 and the pending election? How can you relax yet plan for a refund in the year ahead?
Peace During The Holidays And The New Year
There will be plenty of time to worry and fret, but do not take the holidays for granted. Take the extra time to plan out thoughtful, reasonable gifts. You might need to hold off on that new Amazon gadget and save up for thoughtful gifts for close family. Most friends and family are concerned with the holidays as well.
If your family does have a small setting due to efforts in social distancing you can downsize yet enhance your Thanksgiving feast. There are lots of small portion gourmet dishes in stores such as Trader Joe’s. If you are meeting with your family try to split the cost of the feast. Giving to your favorite charity is not only great for tax returns but it helps us put our situation in perspective as well as sow good seeds for the new year. Just relax over the holidays and, if you must, try to decide on a reliable accountant who you can trust.
What Are Taxes Looking Like For The New Year?
If you lost your job expect to provide job loss documentation. You will also need to keep track of the various benefits you received from the state or the federal government. If you owned a business that lost income or went under, keep a paper trail, and provide documentation of hardship. If you have a retirement account, you will not pay anything for your account. This is in part to the CARES Act. (If you wish you read more on the CARES Act you can visit http://home.treasury.gov/policy-issues/cares. This act provides direct relief for homeowners, businesses, workers, and families.) There is no guarantee on the tax return amount, but financial responsibilities will likely be lower.
What Will The Economy Look Like For 2021?
The current situation appears to reveal businesses reopening. Most small businesses say they will reopen around or after the holidays. That depends on our state or federal government. Right now, it is too early to project what policies will close or reopen local businesses.
The option for online commerce and working through telecommunications is more prominent than ever. Delivery is still an option for small businesses looking to keep their revenue going. For states like Florida, the regulations are currently very loose in contrast with states like New Jersey. Online business will be the industry standard for most of this and next year. Delivery services have already saved many small businesses from falling through.
Whatever your situation, take time to explore your options and think about what the economy demands right now. Online services are commonplace for accountants nowadays. If you are anxious about your taxes, speak with your trusted accountant. For many small businesses in Raleigh that tax firm is Franek Tax. If you are one of the many concerned tax-payers, “Don’t Panic! Call Joe Franek!” – (919) 931-0412