2020 Tax Season with Collins Consulting
December 21, 2020
As we approach the 2020 Tax Season, Collins Consulting is making changes to keep our clients and staff healthy. In 2021, Collins Consulting will not be doing in person tax return appointments.
All tax preparation will be done via drop offs, email or fax:
- There is a new secure drop off box in the main entrance of our location inside of TS Bank in Treynor, Iowa. The drop box is the front vestibule near the ATM and available for drop offs 24/7
- You can also submit documents to email@example.com
- Fax documents to (712) 314-6334
A Collins Consulting tax preparer will contact you via phone, email or Lifesize (video conference) to review your return before its finalized. Once the return is finalized with you, we will send the documents via DocuSign for you to e-sign and return. Within these documents, there will also be a copy of your return. If you do not have access to a computer or prefer a paper copy of your return, you may request a paper copy for an additional fee and we can discuss your delivery choice at the time of your return review.
Additionally, to minimize in-person contact, we are asking clients to drop off copies of documents and not the originals. This will allow us to work on your return digitally, via email through secure e-signatures.
Please complete the organizer and return to Collins with your tax documents.
This will ensure our tax preparers have the most accurate information, and will know what to discuss with you while reviewing your return. You may request a personalized organizer by emailing firstname.lastname@example.org.
This year has brought a lot of changes to this area and we would like to bring your attention to a few different tax strategies and information that might impact you.
Economic Impact Payment (stimulus)
The EIP payment made in 2020 is not taxable income, but will be reconciled on your 2020 tax return, so if underpaid, you could receive additional funds. If you were overpaid, there will not be an increase in taxes on your 2020 tax return. The exact amount of the EIP will need to be known to record on your 2020 tax return. For additional information refer to: https://www.irs.gov/newsroom/economic-impact-payment-information-center-topic-j-reconciling-on-your-2020-tax-return.
For individuals effected by coronavirus, there is an option to remove up to $100,000 from a retirement plan without 10% penalty, taxable over 3 years with an option to repay and pay no income taxes. Additional information explaining the requirements and description of those who may have had adverse financial consequences related to coronavirus is at: https://www.irs.gov/newsroom/irs-new-law-provides-relief-for-eligible-taxpayers-who-need-funds-from-iras-and-other-retirement-plans.
Required Minimum Distributions
Required minimum distributions (RMD) are not required for 2020. Learn more at: https://www.irs.gov/newsroom/coronavirus-relief-for-retirement-plans-and-iras.
IRA contributions were not allowed for taxpayers over age 70 ½ in the past. For 2020 and later, there is no age limit as long as you, or your spouse, have taxable compensation. This change is for both traditional and ROTH IRAs. Learn more at: https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-ira-contribution-limits.
In the past, a taxpayer must itemize to obtain a deduction for charitable donations. For 2020, the first $300 can be deducted on an individual tax return, without meeting the minimum requirement to itemize.
We are looking forward to another busy tax season. If you have any questions, contact us online or give us a call at (712) 487-3853.
About Collins Consulting: Collins Consulting is a full-service tax and accounting firm, started in 1970 by Norm Collins in Treynor, Iowa. In August of 2018, TS Banking Group acquired Collins Consulting as a wholly-owned subsidiary.