The promise of backward compatibility can be alluring for those reluctant to swim in the uncharted waters of innovative technology. Unfortunately, legacy systems and familiar workflows can also lull us into complacency. In fact, the need of the moment calls for a pioneering spirit to get the job done. Yesterday’s tax and accounting firms exist to churn out large numbers of returns. But they are in danger of being commoditized out of existence by their competitors in a race to the bottom. On the other hand, tomorrow’s tax professionals want to promote superior client service and expert tax consulting services.
To remain competitive in this environment, forward-thinking tax professionals need new innovative technology tools. They need to leverage expert solutions that provide them new opportunities when confronted with today’s ever-changing regulatory landscape. Taxpayers demand professionals who have not only relevant domain expertise, but also the ability to apply that expertise.
Finding opportunity in change
Take, for example, the recent Further Consolidated Appropriations Act, 2020. This legislation provides many opportunities for taxpayers to review prior year tax returns and file amendments to take advantage of extended tax credits retroactively. Each of the titles below (and many others) represent a tax event in CCH Axcess iQ. Each tax event provides in-depth analysis of the extender provisions. It also includes a list of potentially impacted clients and a client letter template.
- Medical and Dental Expenses. The Act provides for a reduction in the medical expense deduction floor from 10% to 7.5% for tax years ending after December 31, 2018 and beginning before January 1, 2021. Individuals can claim an itemized deduction for costs related to eligible medical and dental care for themselves, their spouse, or their dependents.
- Credit for Energy Efficient New Homes. The Act includes a three-year extension of the energy efficient homes credit available to eligible contractors for homes acquired after December 31, 2017 through December 31, 2020.
- Deduction for Tuition and Related Expenses. The Act includes a three-year extension of the tuition and fees deduction after December 31, 2017 through December 31, 2020.
- Mortgage insurance premiums. The Act includes a three-year extension of the mortgage insurance premium deduction as qualified residence interest paid or accrued after December 31, 2017 through December 31, 2020.
Instead of investing valuable technology resources in old technology, choose the tools that rise to your level of innovation. Forward-thinking professionals with the right innovative technology will become “future proof” against the industry trend of cookie cutter tax preparation. Learn how you can move forward in 2020 with innovative technology solutions like CCH Axcess iQ. Contact your CCH account representative or register for a demonstration today