2020 Taxes

February 3, 2021 - Published by IAG Wealth Partners

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2020

While the calendar turned to 2021 just over four weeks ago, your mailbox will likely be full of important memories of 2020 in the coming weeks.

‘Tis the season to collect, organize, and eventually file your 2020 income tax returns. Here are some important reminders as you begin your tax filing process:

2020 is not over.

Eligible taxpayers still have the opportunity to make IRA, Roth IRA, or Wisconsin 529 plan contributions for 2020 up to April 15, 2021.

2020 is really not over. If you own your own business you may be eligible to make SEP IRA or profit-sharing contributions until your 2020 tax filing deadline including any extensions up to October 15, 2021.

Your 2020 LPL Financial tax documents will likely be sent out by February 19. LPL Financial will send you your tax forms after they receive all required tax information from individual investment companies. Some investment companies are more likely than others to change their income classifications after their initial report to LPL Financial.

To help you avoid amending your tax return, LPL Financial may delay sending you your forms until they believe there is a smaller chance for changes. If your tax documents are not sent out by February 19, LPL Financial will be sending out your tax documents by March 12 at the absolute latest. Thankfully, this is very rare.

Use AccountView to access your tax documents. If you don’t want to wait for the mail, your tax documents will be available through AccountView on the day they are mailed. LPL Financial started releasing tax documents on January 22 and will continue to do so every Friday through March 12. You can sign up for AccountView or access your accounts here.

Remember your QCD. If you made a qualified charitable distribution (QCD) from your IRA account directly to a charity, be sure to tell your tax professional. QCDs are very tricky for tax reporting because your QCD amount is included in your 1099-R distribution amount. If you do not share this information with your tax professional you may end up paying income taxes on this nontaxable charitable donation.

As always, we recommend consulting with your tax professional before making any tax-related decisions.

 

Quote of the week: Teddy Roosevelt: “The things that will destroy America are prosperity-at-any-price, peace-at-any-price, safety-first instead of duty-first, the love of soft living, and the get-rich-quick theory of life.”

 


Securities offered through LPL Financial. Member FINRA/SIPC. Investment advice offered through IAG Wealth Partners, LLC, (IAG) a registered investment advisor and separate entity from LPL Financial.

Please consult with your tax professional before making any decisions that could impact your taxable income or tax deductions. Your tax circumstances are unique.

Any opinions are those of IAG and not necessarily those of LPL Financial. Expressions of opinion are as of this date and are subject to change without notice. This information is not intended as a solicitation or an offer to buy or sell any security referred to herein. No strategy assures success or protects against loss. Investing involves risk including loss of principal.

This Photo by Unknown Author is licensed under CC BY-ND

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