The Coronavirus has turned everyone’s world upside down since the beginning of the year. One thing financial experts have started looking into is how the effects of COVID-19 will effect the 2020 tax season.
Some of the foreseeable tax issues include teleworking, home office deductions, and payroll tax.
Teleworking may create a problem for those that live in one state but their employer is in another or if the employee moved amidst the world events and the company is located elsewhere. It is a possibility that those employees could pay both jurisdictions.
Home office deductions are not available for those working for a company despite being told to work from how during the pandemic. Independent contractors and self-employed businesses can however continue to claim the deduction.
Starting this month employers can temporarily stop withholding payroll tax according to the IRS and Treasury Department. This will take place until the end of the year.
The Kael Company would be happy to assist you and your business in preparing for the upcoming tax season. It is never too early to start getting your affairs in order. Contact us for more information on what we can do for you.
For more detailed information about potential changes for this year’s tax season, visit the article “The 2020 tax year is going to be a hot mess, and the coronavirus is why” by Michelle Singletary
