For anyone unfamiliar with the employee retention credit, or how the SECURE Act changed the Required Minimum Distribution Age, the End-of-Year Tax Reminders blog published last week by Cain Watters & Associates should be on your light weekend reading list.
In addition to seven “items to take action on before Dec. 31, 2020,” they also offer helpful reminders with this philosophy as a guide: “Now is the time to pause and review your tax strategy to make sure you consider the following before Dec. 31, to help minimize your tax liability for 2020.”
Here’s one to get you started:
“Verify that you have enough taxes paid in by Dec. 31, 2020 in order to avoid paying any penalties or interest. You can do this either through your payroll tax withholdings or with a fourth quarter estimated tax payment, no later than Jan. 15, 2021. Pay any additional state taxes due by year-end as these may be taken as a deduction on your federal tax return.”Cain Watters and Associates
Visit cainwatters.com, a Registered Investment Advisor, and read more about how you can minimize your tax liability here.