Fun Facts for 2020 Tax Season

[deadeye]

There are a number of seat of the pants changes for the 2020 Tax season.
Here's the first one and there will be more. Feel free to add yours here as well.

1. The Minimum Required Distribution (MRD) is NOT required in 2020 for anyone regardless of age.

[fishwidow]

Charitable contributions of up to $300.00 can be deducted from gross income even if you don’t itemize deductions. Must be cash contribution to a qualified charity made before January 1st.

[deadeye]

Economic Recovery Stimulus recovery.  Use your 2020 taxes to get any Stimulus money not automatically received.  Good news: If you were due $2400 and only received $1200 you can claim the missing $1200 on your 2020 Federal taxes.  In typically fashion they don't care if you were due $1200 and received $5000.  NO provision to repay the excess government payment.
     

[Dotch]

Both rounds of CFAP $ will count as income for those filing a schedule F. Don't forget about it because doing so would be an easy excuse to trigger an audit.

[deadeye]

Two good to know facts before you do your taxes - Stimulus payments

1. If on your 2019 taxes you claimed a dependent that was over 16 years old, you did NOT get the first or second stimulus payment for that dependent.  If that's the case and you do NOT claim the person on your 2020 taxes, they can now claim both the first $600 and the second $1200 stimulus payments on their 2020 taxes.  Note: This is especially true for college students who have income over $4300.

2. They used your 2019 income to calculate (reduce) your payments if it was over $75,000 single or $150,000 married. Us the work sheet to calculate your payments with your 2020 income if it was lower than your 2019 AGI.  Note: no problem if its higher as you do not have to send back a part of the stimulus payment.