Last year, we dealt with a lot of unknowns because of the coronavirus situation. Taxes were no exception. From the federal tax deadline being moved up to new legislation being passed, there were loopholes coming at us left and right.
Now that the dust is starting to settle, let’s get some clarity about what we can expect on our 2020 tax returns. That way, we can remain in control and focus our energy on making our financial dreams a reality. Here are four unique situations you need to be aware of:
A 401(k) Withdrawal
Maybe you lost your job, or a loved one got sick with COVID-19, and you needed a lot of cash—fast. I hope you didn’t find yourself in this situation, but if you decided to drain your 401(k) to pay for life’s expenses, you need to be aware of the tax implications.
Chris Hogan
Author
Chris Hogan is a financial expert, host of The Chris Hogan Show, and a best-selling author, including “Everyday Millionaires: How Ordinary People Built Extraordinary Wealth—And How You Can Too.” Follow Chris at ChrisHogan360.com and on Twitter @ChrisHogan360.
