Planning for Tax Year 2020
Now that 2019 is two days in the past, it is already time to begin preparing for 2020. Here are a few tips to help make your 2020 tax process more efficient:
- Organize your receipts and other documentation to better prepare for your 2020 filingsBy both saving your receipts and tracking your other documentation throughout the year, you will be better prepared for year-end planning and tax preparation at the end of the year.
- Review your retirement account contributions and increase them, if possibleIf you are not maxing out your retirement contributions, review your finances to determine whether you are able to increase your contributions by funding them throughout the year to increase your tax savings. Even if you are maxing out your retirement contributions, please review the changes to retirement contribution limits in 2020, as found here.
- Consider if you will have enough deductions in 2020 to itemizeThe standard deduction amount for 2020 will increase to $12,400 for single taxpayers and $24,800 for those married filing jointly in 2020. If you believe you will itemize in 2020, then it may be a good time to increase your charitable deductions to fully maximize your deductions.
- Review withholding statusIf you were under withheld in 2019, consider increasing your withholding for 2020 to avoid another unexpected tax bill at the end of the year.
Please contact us with any questions or to help you plan for your 2020 Tax Year!