 TITLE: How Will COVID-19 Affect Your Taxes? CONTENT: What to Do Now for Your 2021 Taxes\n----------------------------------\nAlthough there's plenty of time between now and next April for new tax laws to go into effect, you can still do some early planning now.\n*   **Optimize your withholding.** If you had a large refund this year or ended up owing money, take a moment to adjust your withholding now. Ideally, you want to have just enough money withheld from your paychecks to cover your tax bill. Anything more is a loan to the government; anything less means making a payment at tax time.\n*   **Anticipate a smaller paycheck.** Taxpayers who saw an increase in their 2020 paychecks due to the payroll tax deferral could see a temporary reduction in take-home pay from January to April of 2021.\n*   **Stay tuned for updates.** As the federal government continues to work on COVID-19 relief, a new round of stimulus payments and tax-related legislation is likely to be enacted. Be sure to figure out how any changes will affect your 2021 taxes, and take action if necessary. END