Healthy, Wealthy & Wise
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As far as preparing to have your tax return
done, the usual advice applies about not
waiting until the last minute, especially with the
IRS likely facing a backlog. Staying organized is
more important than ever.

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minimum IRA distribu-
tions for 2020.

Th e CARES Act allows
withdrawals of up to
$100,000 out of IRAs and
401(k) for those under 59½
without the usual 10%
early withdrawal penal-
ties if hardship can be
demonstrated. For those not itemizing,
t here is a new $30 0
deduction for charitable
contributions. In addition,
the normal limit of 60% of
adjusted gross income on
deductions is potentially
suspended. Payroll Protection Program
loans are forgivable and tax
free for the IRS.

There’s 100% deduct-
ibility for meal expenses,
compared to only 50% in
prior years, as a way to help
restaurants. The mileage deduction
for self-employed people
dropped from 58 cents per
mile to 57½ cents.

If you’re self-employed there
are new sick leave and family
credits available to apply for
if you couldn’t work because
of COVID-19 or cared for
someone ill from it.

JEWISHEXPONENT.COM electronically,” he said, as a
means of having a receipt,
receiving refunds faster and
the chance to avoid penalties.

Bookman said there is still
reluctance on the part of some
taxpayers, who don’t want
key information like Social
Security numbers and bank
account numbers submitted
• The medical expense to do this year is absolutely, electronically, to go the paper-
deduction, which was if you can, fi le your return less route, but he’s never
supposed to jump to 10% of
a recipient’s adjusted gross
income, remains at 7.5%.

As far as preparing to have
your tax return done, the
usual advice applies about not
waiting until the last minute,
especially with the IRS likely
facing a backlog. Staying
organized is more important
than ever.

“They are significantly
behind in everything they’re
doing,” Nelson said, noting that
extensions she fi led by mail last
July weren’t even opened until
November. Th e IRS recently announced
that it won’t begin accepting and
processing individual income
tax returns until Feb. 12, Th e
New York Times reported.

Usually, it begins that process
in late January. Do note that
even though the fi ling deadline
was pushed back three months
in 2020, the fi ling deadline
remains April 15.

Jeff Bookman, a Bala
Cynwyd-based CPA, recom-
mended keeping as many
electronic records as possible.

“What I really tell people
experienced any problems with
the method.

As far as 2021 goes, stay
tuned; the accountants expect
taxes to increase — just not to
what extent.

“With the new administra-
tion, we won’t know what the
landscape will be,” Casey said. ●
agotlieb@jewishexponent.com; 215-832-0797
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JEWISH EXPONENT
JANUARY 28, 2021
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