2020 Tax Changes That Will Help You Save Money

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Just days into the new year and there’s one thing on everyone’s mind, for better or for worse; TAXES.

Tax Preparer, Adrian Carmona of the Conlon Tax Service says there are key changes pertaining to health care, child care and standard deductions.

HEALTH CARE

In previous years, taxpayers were forced to pay a fee if they chose to opt out of health insurance. In 2020, the fee is eliminated.

“It helps a lot of people because they didn’t have a job where they offered health insurance and they didn’t have enough money to pay for their own health insurance,” says Carmona.

STANDARDIZED TAX DEDUCTIONS

“The standard deductions by the internal revenue service that reduces the amount of taxable income that you make in a year,” says Carmona.

For those filing under single, in 2020, tax deductions are $12,400. This is increased $200 compared to 2019.

Married: In 2019 deductions were $24,400 but they increased by $200 to $24,800.

The more money the government withholds, the more money in your wallet.

CHILD CARE

The IRS gives a credit for parents and caregivers who pay for daycare or afterschool services.

Carmona says this is usually up 20%, up to $3,300.

“So what that means is out of 33,000, when they file their taxes they will get 660 dollar credit for their expenses paid for child care services,” he adds.

For more tax information , you can click HERE

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