The tax season to file your federal income tax return is on. As long as you have your forms ready, you can begin filing your tax return as of January 27th. Same as any other year, there have been many things that changed. These changes could be anywhere from small adjustments to certain thresholds and figures.
Tax Changes You Should Know About
Same as any other year, the tax brackets and the standard deduction amount has been adjusted. For single filers, the standard deduction amount is $12,400 and $18,650 for head of household. Joint filers, on the other hand, will get double the amount of what single filers. As well as the qualifying widow(er)s.
View 2020 Tax Brackets
Tax Payment Deadline 2020
One thing that changed for 2020 is making your tax payments if you owe to the IRS. Due to the Covid-19 pandemic, the IRS pushed the April 15 deadline to make tax payments for an additional 90 days. So you will have until July 15 to pay what you owe to the IRS.
If you don’t know if you owe to the IRS or will receive a tax refund, check your Forms 1040. On Line 20, you’ll see whether you will end up owing to the IRS or get a tax refund. This pushback in the deadline is only about tax payments. So you can expect to have your tax refund once it is available. If you filed electronically and opt-in for a direct deposit, you can expect to have your tax refund within three weeks of filing your tax return.
However, if you’re expecting a physical check from the IRS, it will definitely take more than that. Not because there is anything wrong with paper checks but it takes significantly longer for the IRS to process paper check tax refunds.
Other than these, most things remain the same as in previous years. The most notable change to deduction amounts other than the standard deduction is the threshold for claiming medical expenses deduction. The 7.5% threshold increased to 10% for 2020. However, this isn’t anything new.
The Tax Cuts and Jobs Act (TCJA) of 2017 continued the 7.5% threshold for the medical expenses deduction, but only so far. Since most changes occurred after the TCJA of 2017 will remain until 2025, there isn’t much that we can list for now. The full list of 2020 tax changes can be found here.