How do recent tax changes affect my 2020 taxes?
Some of the new tax change highlights include:
- Economic Impact Payment (EIP) (also known as stimulus payments) can be claimed on your tax return if you haven't already received the full amount of the payment.
- You can take up to a $300 deduction for charitable cash contributions when taking the Standard Deduction.
- RMD penalties are waived for 2020.
- There is no longer an age limit on who can make regular contributions to IRAs.
- The IRS now allows e-filing amended tax returns.
If you have a business, there are multiple credits, loans, and payroll deferrals that you may have already taken advantage of during the pandemic or that you can claim on your return.
Also, if you received unemployment compensation, make sure to report that on your tax return since it's taxable income. Not all states mail Form 1099-G
showing the payments. You may have to check their website for that information if you received unemployment compensation.