Smart tax planning can provide much-needed financial relief

CHICAGO (Oct. 14, 2020) – The COVID-19 pandemic’s impact on taxes has been far-reaching, and the 2020 presidential election presents big questions on taxes. To help navigate these recent and possible changes, Crowe LLP, a public accounting, consulting and technology firm in the U.S. with offices around the world, has issued “Tax Planning: 2020 Year-End Guide.”

The guide covers numerous issues and provides guidance on new legislation, such as the Families First Coronavirus Response Act (FFCRA) and the Coronavirus Aid, Relief, and Economic Security Act (CARES Act). According to Gary Fox, managing partner of tax services at Crowe, the legislation enacted tax changes and other programs designed to help taxpayers increase cash flow.

“Navigating the current landscape can be tricky and confusing,” Fox said. “It is important to stay on top of all the fast-moving law changes of the past six months and to remain prepared for the possible changes in the near future.”

The guide includes deeper insights on the following topics:

• Income and deductions: Standard deductions vs. itemizing, state and local tax deductions, home-related breaks and tax-advantaged saving for health care
• Family and education: Child, dependent and adoption credits, dependent care breaks, the “kiddie tax,” Section 529 plans, education savings accounts (ESAs) and Achieving a Better Life Experience (ABLE) accounts
• Investing: Capital gains taxes and timing, being tax-smart with losses, mutual funds, income investments and 3.8% net investment income tax (NIIT)
• Business: Business structure, Section 199A deductions for pass-through businesses, projecting income, depreciation, vehicle-related depreciation, meals, entertainment and transportation, employee benefits, tax credits and the self-employed
• Retirement: 401(k)s and other employer plans, more tax-deferred options, Roth alternatives, early withdrawals, required minimum distributions, IRA donations to charity and the Setting Every Community Up for Retirement Enhancement Act (SECURE Act)
• Estate planning: Estate taxes, gift taxes, the generation-skipping transfer (GST) tax, state taxes, exemption portability and tax-smart giving
• Tax rates: Income tax rates for individuals, corporations and estates and trusts

About Crowe
Crowe LLP is a public accounting, consulting and technology firm with offices around the world. Crowe uses its deep industry expertise to provide audit services to public and private entities. The firm and its subsidiaries also help clients make smart decisions that lead to lasting value with its tax, advisory and consulting services. Crowe is recognized by many organizations as one of the best places to work in the U.S. As an independent member of Crowe Global, one of the largest global accounting networks in the world, Crowe serves clients worldwide. The network consists of more than 200 independent accounting and advisory services firms in more than 130 countries around the world.