The IRS is issuing economic impact payments (EIP) to millions of eligible taxpayers (up to $1,200 for individuals and $2,400 for joint filers). A taxpayer is eligible if their adjusted gross income is below $99k for individual filers or $198k for joint filers.
Required Minimum Distribution Rules Are Suspended for 2020
In normal times, after reaching the magic age, you must start taking annual required minimum distributions (RMDs) from traditional IRAs and from qualified retirement plan accounts. The magic age is 70 1/2 if you attained that age before 2020 or 72 if you attain age 70 1/2 after 2019.
Thankfully, the CARES Act suspends all RMDs that you would have to take in 2020. For 2021 and beyond, the RMD rules will be applied as if 2020 never happened.
Our team would like to provide you with an update regarding the recent announcements regarding income tax filing and payment extensions.
The new filing and payment deadline for IRS and California is now automatically July 15th. So, no taxpayer needs to file or make any payments until July 15th. There will be no interest charges or penalties to delay any payment of income taxes (up to $1 million) up until July 15th.
Recent changes in income tax laws have made it even more important for you to be strategic with your charitable giving during the year, so that you can maximize tax benefits while supporting your favorite charities. As you contemplate gifts to your favorite charities in 2020, keep in mind that strategizing early in the year may allow you take advantage of several methods for maximizing your tax savings. Here are a few tax wise methods for charitable giving that you may be able to take advantage of depending on your financial circumstances.