Has The IRS Extended Any Tax Filing Deadlines Past July 15th Due To COVID-19?

As of June 16th, the IRS has not extended any deadlines past July 15th. For estimated taxes, the April 15th and June 15th payments are due on July 15th. Your September 2020 payment and January 2021 payment will be due on the date they have always been scheduled.

Is There A Penalty For Not Having Health Insurance in 2020 In South Carolina?

In South Carolina, there is no penalty for not having health insurance in 2020. The requirement to have insurance was discontinued in 2019. Therefore, there is no penalty for not having insurance at this time.

What Are The 2020 Retirement Contribution Limits?

For 401(k)s and most retirement plans, the retirement contribution limit has been increased to $19,500. For IRAs, the limit remains at $6,000.

How Much Can You Contribute To An HSA In 2020?

In 2020, the limit to contribute to an HSA for individuals is $3,550. For families, the contribution limit is $7,100.

Can I Still Contribute To 2019 HSA In 2020?

You can still contribute to a 2019 HSA in 2020. Due to the COVID-19 extension, you may contribute to your HSA up until July 15th, 2020, and it can be counted towards your 2019 taxes.

Does Contributing To HSA Reduce Taxable Income?

Contributing to an HSA does count as a deduction against your taxes.

What Are The 2021 IRS Limits For HSA And High Deductible Health Plans That Were Announced?

For HSAs, the 2021 IRS limits are $3,600 for individuals and $7,200 for families. The deductible limits for high deductible health plans remain unchanged.

Is It Worth Claiming Medical Expenses On My Taxes?

The decision to claim medical expenses on taxes will depend on each individual and his/her income and deductions. In order to claim medical expenses as a deduction, you must itemize your deductions. For most people, this is not worth it since the standard deduction is quite high. Your medical expenses must be more than 7.5% of your adjusted gross income.

What Is The Standard Medical Deduction For 2020?

For 2020, the threshold for claiming a medical deduction has been lowered from 10% to 7.5% of your adjusted gross income. If you have medical expenses greater than 7.5% of your adjusted gross income, that excess can be a deduction for you.

Are My Health Insurance Premiums Tax Deductible?

It depends on who pays your health insurance premiums to determine whether those premiums are tax deductible. If those premiums are paid by your employer, they are not deductible. However, if you pay the premiums with after tax dollars for your health insurance, then those premiums are deductible.

How Many Years Can I Go Back To Claim Medical Expenses?

In general, you have three years to file an amended a tax return. Therefore, if you want to claim previous medical expenses, you could go back for three years to claim those expenses. Remember that before this year, the threshold was 10% of your adjusted gross income.

How Did The Tax Cuts In Jobs Act Impact Alimony Deductions For The Year 2020 And Going Forward?

Alimony or separate maintenance is sometimes deductible. Child support is never deductible. However, if your divorce order or separate maintenance order was executed before December 31, 2018, then those alimony payments are still deductible. If your alimony order was granted after January 1st, 2019, your alimony is not deductible.

What Are Penalties For Failure To Report all Income To The IRS?

If you fail to report all income to the IRS, there are several penalties that can apply. The worst one is a substantial understatement of taxes, which can be 25% of your total tax bill. There will also be a failure to pay or late payment penalty.

Who Is Required To Pay Quarterly Estimated Taxes? How Do I Know How Much To Pay?

In general, if you owe more than $1,000 on your current income tax return, i.e. your total tax minus what you have already paid, you should pay estimated taxes for the coming year. Quarterly estimated taxes are normally broken into four payments. Those payments are calculated by taking 90% of your total tax bill for the previous year and dividing that amount by four.

What Happens If I Don’t Pay My Estimated Taxes, Underpay, Or Pay Late?

If you do not pay your estimated taxes, underpay, or pay late, it’s treated just like any other taxes that you don’t pay or underpay. There will be interest accruing for the underpaid or non-paid portion. You can also get a separate penalty for underpaying your estimated taxes in addition to regular underpayment penalties.

For more information on Extension Of Tax Deadlines Due TO COVID-19, a free case evaluation is your next best step. Get the information and legal answers you are seeking by calling (864) 271-7940 today.

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