Draft 1040 is out !
As a tax preparer, I'm always interested to see how the IRS will change the next year's Form 1040. With all of the new tax "stuff" issued earlier in the year, 2020 is of particular interest. Here are the highlights:
- a very prominent virtual currency inquiry. we've been able to "kind of" ignore virtual currency tax issues. Probably not anymore, so if you engage in this activity, gear up !
- charitable contribution item on page 1. This is to accommodate the special "above the line" new $300 deduction that was part of the COVID relief provisions
-stimulus checks. Added a reconciliation section to address the potential difference with the check received and the check allowed. Another COVID provision.
-New line for "Deferral for...SE filers". This is to address yet another COVID relief provision dealing with deferral of employer's share of FICA tax.
As you can see, the theme for the 2020 tax returns will be related to the numerous COVID relief provisions issued earlier this year. Be sure to secure competent CPA help with your 2020 taxes, early. We anticipate a huge bombardment of requests for help for the upcoming tax season, so please free to call me over the next several months to secure a spot !