Video: 2020 Individual Tax Highlights
March 18, 2020
Tax Laws Extended Through 2020
• Tuition and Fees Deduction – Deduct up to $4,000 in educational expenses.
• Medical expense deduction remains at 7.5% of adjusted gross income.
• Mortage Insurance Preimums deductible as itemized deduction.
New Rules Apply to Retirement Accounts in 2020
• A $5,000 penalty-free withdrawal from IRAs for a new birth or adoption.
• Elimination of the contribution age limits for Traditional IRAs.
• New age limit for required minimum distributions.
Common Tax Laws Impacting You During 2020
• A child’s excess unearned income is taxed using their parent’s tax rate.
• For federally declared disaster areas there is now an automatic 60 day filing extension.
• Use a 529 account to pay down a students debt as an alternative to transfer excess funds to a qualifying beneficary.