December 2020 Tax Newsletter

Tax Issues for End of the Year

Happy New Year to all! A prayer and a wish for a healthier new year!  

Congress approve new stimulus. More on this next month but read about it here.

(https://www.cnbc.com/2020/12/29/600-stimulus-checks-are-on-the-way-heres-who-will-get-them-first.html?__source=newsletter%7Cyourwealth)

2020 End-of-year Tax Issues

• IRS Publishes Steps to Take Now to Get a Jump on Your Taxes. Read the article published by the IRS recently on what to do to get a "jump on your taxes" for 2021 here. 

• More helpful reading: "5 Year-end Strategies to Save on Your 2020 Taxes" read here. 

• The IRS released the 2021 annual inflation adjustments for more than 60 tax provisions, including the tax rate schedules and other important tax changes. See the 24 changes summarized here.

• The revised 2020 standard deductions are presented here. 

• In addition, the capital gains tax rates for 2020 are summarized here. 

U.S. Expats with Foreign Bank Accounts

FATCA, passed in 2010, has caused many U.S. expats headaches leading to renunciation of their American Citizenship. However, a recent article of how bankers will start acting on American citizens and their bank accounts. Expats should also be aware that this issue may not only be a Belgian bank issue but throughout the E.U. and possibly globally. Accidental Americans should be very aware of these requirements on how their banks may treat them as "foreigners" and not as a local citizen. This article published by PWC, "Update – American Belgians risk losing their Belgian bank account", is essential reading for most expat Americans.

Donations before December 31 

Keep in mind that for your 2020 tax return you will be able to obtain a charitable contribution credit of $300. This was provided in the CARES Act. You still have a few more months to make that contribution to your favorite charities. Read more information here