Important Tax Deadlines - December 31st
Updated: Dec 30, 2020
* No Required Minimum Distributions for those 72 or older. Cares Act Exception
* No "use it or lose it" Flexible Spending Account (FSA) rules. Under the new Relief Bill, taxpayers can roll over their entire unused account into 2021 and don't lose it.
* Deadline for Health Reimbursement Arrangements (HRA). If you had an HRA in 2020, you have till December 31st to complete any reimbursements for a write off.
* Roth Conversions. If you want to 'convert' some IRA money to ROTH you have to do it by December 31st.
* Deadline to create Self-Directed Solo 401(k) for 2020 Deductions. If you want the tax deduction this year (even though you don't have to fund it until next year), you have to have the 401k setup by year-end.
* Pay Family Members. If you have kids working for you (over or under age 18), make sure you follow proper procedures to process paying them. If you don't follow the rules and push the money and paper for legitimate work, you don't get the write-off!
* Maximizing wise Year-End Tax Deductions. Are you thinking about buying a car/truck/SUV or RV? The deduction could be significant. Consider pre-paying the expenses, deferring income, and purchasing needed equipment under the Bonus Depreciation rules.
* Holiday Travel. Finally, make sure you write-off your holiday vacation under a creative business rule.