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June 2020 Tax Season Filing Tips

Summertime 2020, and the tax living definitely isn't easy.

Tax tip pencilHello, June. In any other tax year, this month I'd be trying to convince you to pay at least a little attention to your taxes.

If you had requested a filing extension, you'd be blowing me off because you'd have 4½ months to finish up and file last year's Form 1040.

And if you'd finished your filing, you'd be blowing me off because summer! There's plenty of time to worry about this year's taxes later this year.

I would argue that in both cases, you'd be a bit misguided, offer up some post-Tax Day filing tips for procrastinators, as well as other advice for planners, and we'd all continue on with our relaxing summertime plans.

Not June 2020.

By now we're all too well aware that the April 15 deadline for filing your return and paying any due tax has been pushed to July 15 because of COVID-19 precautions and the continuing changes to the tax code due to the pandemic.

So while there will be some 2020 tax planning tips this month, many of June's tax tidbits will look at ways to finish up our 2019 returns since, according to Internal Revenue Service data, a whole lot of us like to wait until Tax Day, whenever that might be, is looming to do our tax duty.

I know. It's not the way I wanted to spend the first full month of summer either, but here we are. And here we go with Filing Season Tax Tips for June.

As with the other months' pieces of tax advice, these June tips are highlighted in the upper right corner of the ol' blog. And as is now standard operating procedure, after each tip has its time in spotlight, it will join all the other June tips here on this page.

Let's get to them!

  1. 5 tax moves to make this COVID-19 affected June — Hello weird, scary, frustrating June 2020. We're sort of glad you're here, even though the coronavirus means many of us aren't going to be taking a summer vacation and instead are still be messing with our 2019 taxes. Here are 5 ways to start off this extended tax season. (June 1, 2020)
  2. Interest offers tax savings, costs and more forms — Interest in taxes includes the ways interest paid or interest earned affects your filings. Regardless of whether the interest cuts your tax bill or adds to it, you'll have to deal with more tax forms. Here's a look two interesting 1098s and a 1099. (June 2, 2020)
  3. More virtual tax settlement days on tap — If you and the IRS disagree on your tax liability, the agency is using technology to make your resolution efforts a bit easier and, in this time of COVID-19, safer. After several successful Virtual Settlement Days in three cities in May, the IRS has scheduled more. They're coming up in June and July in Los Angeles, Atlanta and Washington, D.C. Mark your tax calendars! (June 4, 2020)
  4. Major disasters could provide tax break — Tropical Storm Cristobal's designation as a major disaster means that some who sustained damages from it now can claim them on their taxes. Here's a look at how using Form 4684 and, just as important, when to file major disaster loss claims. (June 8, 2020)
  5. The latest COVID-19 risk? Scams — COVID-19 economic impact payments are still being distributed by the IRS. That means crooks are still trying to scam us out of our pandemic relief money. Don't fall for their phishing and other schemes. (June 9, 2020)
  6. Day camps, COVID-19 and a tax credit — Are day camps in your area opening with special COVID-19 protections? If you determine they will be able to keep your child safe, keep track of the camp expenses. You might be able to use them to claim the child and dependent care tax credit. (June 10, 2020)
  7. More IRS help on hand — In June, thousands of Internal Revenue Service workers returned to their offices. That brings to 12 the states where the tax agency employees again are working at IRS campuses instead of from home. It also means that the personnel will be plowing through 10 million pieces of backlogged tax mail. (June 14, 2020)
  8. IRS offers COVID-related tax notice grace periods — With more Internal Revenue Service staff back in their offices, tax notices that weren't sent earlier this year are finally going out. Some of them will include action deadlines that have passed. The IRS says not to worry. Taxpayers are getting more time to deal with these coronavirus-delayed IRS notices. The new due dates to answer notice questions will be, depending on the type of notice, either July 10 or July 15. (June 15, 2020)
  9. IRS offers COVID payment tracking tips — Are you still waiting for your coronavirus economic impact payment? The Internal Revenue Service has issued additional answers to questions on how to track down your missing COVID cash. (June 18, 2020)
  10. Child Tax Credit + other parental tax breaks — Father's Day is over, but the tax breaks available to most parents remain. The most popular is the Child Tax Credit, but there are plenty more way the tax code helps you cover the costs of child rearing. (June 21, 2020)
  11. Returning a COVID relief payment — The IRS sent out some COVID-19 economic stimulus payments to folks who shouldn't have received them. It wants them back and is asking those who erroneously received them to return them. It's a request, not a demand. If you're so inclined to do Uncle Sam a favor, here's how to send back your coronavirus cash. (June 22, 2020)
  12. Hang on to that COVID-19 White House letter — Remember that letter about your COVID-19 economic relief payment? The one on White House stationery and signed by Donald J. Trump? That's more than just friendly (and seemingly campaign related) from the president. You need to track it down (if you didn't toss it) and store it with your other tax records. It's an official IRS document, Notice 1444. (June 23, 2020)
  13. IRS allows RMD reversal through Aug. 31 — Many older savers have been watching tax laws as closely as their retirement investments. In recent months, they've seen several tax-friendly measures enacted. This week, they got more mostly good tax news as the IRS decided they can re-do early-2020 required minimum distributions through Aug. 31. (June 24, 2020)
  14. IRS adding interest to late refunds — There is one tiny silver lining in this coronavirus tax time. If you've yet to get your federal tax refund, when it does arrive it will include some interest that the Internal Revenue Service is adding to amounts issued after April 15. (June 26, 2020)
  15. Teenagers' summer jobs and taxes — The coronavirus pandemic is hurting job searches by teens looking for summer employment. But wait, says a new report. Hiring looks like it could pick up later in the summer. And after you're hired, you'll need these new-worker tax tips. (June 27, 2020)
  16. IRS says 7/15 is Tax Day 2020. Time for an extension? — IRS says it's not moving Tax Day again. The July 15 deadline is firm. But if you find you do need more time to fill out your tax forms, then you can get an extension. Added time to file is available not just for individual taxpayers but, as highlighted in Tax Form Tuesday, available to all sorts of entities looking for a filing extension. (June 30, 2020)

*****

Just getting started on your taxes? No problem. You can find the previous months' collected tax wisdom by clicking the links below.

And yes, you can click on May, June and June, too, but you'll just find a guy telling you to whoa up. We're not there yet. Rest assured, those tips will be added as those months arrive.

January 2020 Filing Season Tax Tips

February 2020 Filing Season Tax Tips

March 2020 Filing Season Tax Tips

April 2020 Filing Season Tax Tips

May 2020 Filing Season Tax Tips

July 2020 Filing Season Tax Tips

Coronavirus Caveat & More Information
In 2020, we're all dealing with extraordinary circumstances,
both in our daily lives and when it comes to our taxes.
The COVID-19 pandemic and efforts to reduce its transmission
and protect ourselves and our families means that,
for the most part, we're focusing on just getting through these trying days.

But life as we knew it before the coronavirus will return,
along with our mundane tax matters.
Here's hoping that happens soon!
In the meantime, you can find more on the virus and its effects on our taxes
by clicking Coronavirus (COVID-19) and Taxes.

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Weekly Tax Tip

  • Reporting your winnings to the IRS — Uncle Sam apparently is Lady Luck's cousin. Your lottery jackpot, other gambling winnings and prizes, too, are taxable income. Here's how to report them to the Internal Revenue Service on Form 1040's Schedule 1. (Jan. 11, 2021)

  • Tax Tip; click pencil for all tax tip links

  • Check out all the latest post-Tax Day tax advice in the 2020 edition of Weekly Tax Tips. Many of these once-a-week tips will focus on planning moves to cut your 2020 tax bill.
    If, however, you got an extension and are still working on your 2019 return, you can get a refresher of the 2020 Filing Season Tax Tips at their respective monthly pages:
    January, February, March, April, May, June and July.

COVID-19 & Taxes

  • COVID-19
    Coronavirus has wreaked havoc
    on the 2020 tax season.
    This Coronavirus (COVID-19) & Taxes page has details.

All About Kay

  • OK, some about Kay
    Open sign
    Kay Bell — Native Texan (the blog title totally makes sense now, right?). Professional journalist. Tax geek.

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  • Tax Season 2021 is here!
    Happy New Tax Year! Are you ready to file your 2020 tax return? Me neither. With all the delays last year due to COVID-19, it seems like that prior tax season just finished. But time and taxes wait for no taxpayer. The Internal Revenue Service, which started 2021 by delivering more coronavirus economic relief payments, says it will be ready for our returns. So let's get prepared, too. The monthly tips and reminders a little further down this column should help us focus on our taxes and make the filing of them by go more smoothly. Also keep an eye on the countdown clock just below. It will help us keep track of how much time we have until Tax Day on April 15, just in case some of us want to put things off until the final hours. .
    Note: I'm in the Central Time Zone, so adjust accordingly for where you live.


Time for Tax Tasks


  • monthly tax moves

  • Oh, 2021. I cannot tell you how happy we are to see you. You will be better than 2020, right? Right?!?

    via GIPHY

    And just so there's no confusion, that's a question New Year 2021, not a challenge. So don't you dare try to outdo the just-past Year of COVID-19 and its many, many complications, including in the tax world.

    Jan. 1: While there's some good news with vaccines going out to fight the coronavirus pandemic, we'll still be dealing with it for a while. The Internal Revenue Service is delivering the second round of relief payments and the commissioner promises that the agency will start the 2021 filing season as usual later this month. I hope that's correct, but we shall see.

    Jan. 4: If your job made it through the tough last year, good for you and your company and welcome to the New Year's first work week. It's the perfect time to refine your payroll withholding. This is particularly applicable true for federal employees, including members of the military and even IRS personnel, whose withholding was suspended that last few months of 2020. That money must be paid to Uncle Sam, but a new late-year law says the repayment isn't due until the end of 2021. Adjustment withholding now will give you 52 weeks to spread it across, making the per-paycheck bite less painful.

    Jan. 7: The IRS' online withholding assistant or your tax pro can help you with your withholding amount and other tax numbers, but it's also a good idea going into a New Year to have an idea of your tax bracket and income tax rate. The rates tend to hold steady (until Congress starts fiddling!), but the brackets are adjusted annually for inflation. You can check out the 2021 income brackets (and 2020's for comparison) in the first post in the ol' blog's annual inflation series. At the end of that item, you'll find a directly to the other nine inflation items.

    Jan. 11: Continuing coronavirus precautions mean some restaurants are still closed for in-house dining. Other eateries are managing with take-out meals and deliveries. Whether you're able to enjoy table service in or getting food brought to your house, remember to tip your server or delivery person.

    restaurant check tip iStock
    If a tip isn't included in your food delivery charge, click the image above to calculate how much to tip the person who brought it to you.

    As for servers who are still on the job, remember that your tips are taxable income. If you at least $20 in job-related gratuities last December, you need to account for them today by using Form 4070 to report your tips today to your employer.

    Jan. 13: Did some of those tips come from a side hustle? That's just one of the tax matters to think about when you are part of the gig economy. In these freelance or contractor situations, you'll need to pay estimated taxes.

    Jan. 15: The final estimated tax payment for the prior year, 2020 in this case, is due today. The other three payments are for earnings in 2021 that aren't subject to withholding and are due on April 15, June 15 and Sept. 15. And be sure to account for your self-employment tax in figuring your estimated amounts.

    Jan. 18: Many people spend Martin Luther King Jr. Day each year as a day of service.

     MLK Day 2020 logo
    Click image to find out ways
    you can volunteer on MLK Day.

    Taking time on Dr. King's holiday to volunteer at a charity isn't tax deductible, but some costs associated with volunteering could help reduce your tax bill if you itemize. Most filers, however, claim the standard deduction and a new tax law gives them a tax break, too. On your 2020 return, you can claim up to $300 in donations directly on your Form 1040. In 2021, the $300 amount remains, but is doubled for couples who file jointly.

    Jan. 21: If the IRS meets its usual timetable, the annual tax-filing season will start soon. If you can get your tax material together, then there are several good reasons to file your return early.

    Jan. 25: Millions of filers find electronic tax options are great ways to get returns to the IRS as soon as possible. The tax agency agrees. In fact, for almost two decades, the IRS has partnered with the Free File Alliance to offer eligible taxpayers access to online tax software and e-filing through the aptly named Free File site at IRS.gov.

    IRS Free File; click image for details

    Last year, Free File was available to filers with adjusted gross income of $69,000 or less, regardless of filing status. That threshold has been bumped up to $72,000 for this filing season. If you're eligible, be ready to log-on when Free File officially opens, which usually around this time.

    Jan. 29: Of course, regardless of how you file your taxes, you can't do so until you all the necessary documents, such as W-2 and 1099 forms. Employers have until the end of the month (or Feb. 1 this year since Jan. 31 falls on Sunday) to get the to you, so be on the lookout for all the documents you need to file.

    Small Business Tax Calendar: Important filing, deposit and record keeping dates throughout the year that your company needs to know. You can get more tax calendar information at the IRS' online calendar page and view the full year's important business and individual tax dates in IRS Pub. 509.

State Tax Help

  • Don't forget your state taxes!
    Forty-three states and D.C. collect personal income taxes. But even if you live in of the seven states without an income levy, you still face other state (and local) taxes.

    State Tax Departments provides links to your state's Web page. The companion page, Tax Tidbits, is the compilation of blurbs about each state's tax laws. And for more state tax news, check out all our state tax bloggings.

Tax Forms

  • Tax Forms
    Thanks to our increased use of tax preparers and computer software, many of us don't see our tax forms until we sign and file them. But knowing what's on these documents, either in paper or digital form, and why the IRS wants it is key to understanding our tax system. And knowledge definitely is power, especially when it comes to tax savings. Find this valuable information in the ol' blog's special Tax Forms Fiesta! page.

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Mapping Your Tax Route

  • Do you get lost doing your taxes? Check out the Taxpayer Advocate Service's Taxpayer Roadmap.

    Taxpayer Advocate Taxpayer Maps 2019

    This publication, designed along the lines of a subway map, shows the many routes and detours of a taxpayer's journey through our elaborate Internal Revenue Code and the Internal Revenue Service's enforcement of our tax collection system.

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  • You can read more
    of Kay's tax insights in ...


  • Kay Bell helps you build
    a solid tax foundation in
    "Personal Finance: An Encyclopedia
    of Modern Money Management"




    Kay Bell breaks down taxes and
    estate planning for millennials in
    "Future Millionaires' Guidebook"



    A collection of Kay Bell stories
    is included in
    "The Gambler's Guide to Taxes:
    How to Keep More
    of What You Win"




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I gotta tell ya ...

  • AKA Disclaimer:
    I am a professional journalist who has been covering tax issues since 1999.
    I am not a professional tax preparer.
    The content on Don't Mess With Taxes is my personal opinion based on my study and understanding of tax laws, policies and regulations. It is provided for your private, noncommercial, educational and informational purposes only. It is not a recommendation of any specific tax action(s) you should or should not take. Similarly, mentions of products or services are not endorsements. In other words, my ramblings on the ol' blog are free advice and you know what they say about getting what you pay for. That's why when it comes to filing your taxes, I urge you to get additional, professional, paid-for guidance from an accountant, Enrolled Agent or other qualified tax preparer who is familiar with your individual tax circumstances.

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