Page 7 - Supplement to Income Tax 2020

Contents

Recent Tax Developments 3 Form 1040—Schedule 2 26
Last Minute Tax Changes 3 Form 1040—Schedule 3 27
IRS Mileage Rates for 2020 5 Form 1040—Schedule A 28
Gain on Opportunity Zone Assets 6 Form 1040—Schedule B 29
Form 1040—Schedule C 30
Social Security & Medicare Taxes on 2020
Wages & Self-Employment Earnings 6 Form 1040—Schedule D 32
Medicare Part B and Part D Premiums for 2020 7 Form 1040—Schedule E 34
2018 MAGI and Filing Status Determine Form 1040—Schedule SE 36
2020 Medicare Premiums and Surcharges 8 Form 1040—Schedule EIC 38
Form 1040—Schedule 8812 40
Estimating Your 2020 Taxes 9
Retirement Plan Cost-of-Living 2019 Child Tax Credit and
Adjustments for 2020 9 Credit for Other Dependents Worksheet 41
Non-Retirement Cost-of-Living Qualified Dividends and
Adjustments for 2020 10 Capital Gain Tax Worksheet 43
Form 4684 44
2020 Tax Rate Tables 13 Form 8949 48
Additions & Corrections to the Text of Form 8959 50
Your Income Tax 2020 14 Form 8960 51
Form 8962 52
Worksheets for Figuring Taxable
Social Security Benefits 17 2019 Tax Table 54
2019 Tax Computation Worksheet 66
Forms, Tables, Worksheets for 2019 19 2019 Earned Income Credit (EIC) Table 67
Form 1040 21 2019 Optional State Sales Tax Tables 76
Form 1040-SR 23 2019 Bond Tables—Series EE 81
Form 1040—Schedule 1 25 2019 Bond Tables—Series I 89

Recent Tax Developments*
(Boldface page references in the headings and text of the following articles are to the text of J.K. Lasser’s Your Income Tax 2020.)

Last Minute Tax Changes

The Further Consolidated Appropriations Act, 2020, retirement plans starting in 2020 or later; the changes
was signed into law on December 20, 2019. This massive do not impact 2019 returns but clearly impact
spending measure included the Taxpayer Certainty and estimated taxes and tax planning for 2020 and beyond.
Disaster Tax Relief Act of 2019, which extended various And there are other tax changes in these new laws,
provisions (“extenders”). Those that expired at the end including changes to the kiddie tax, the itemized medical
of 2017 were retroactively extended to 2018, and are in deduction, and the penalty for late filing a return.
effect for 2019 and 2020 as well. This Act also includes Expired Provisions Effective for 2018, 2019, and
tax relief for victims of certain disasters. 2020. The new law reinstates the following provisions
Another part of the spending measure is the Setting for 2018, allows them on 2019 returns currently
Every Community Up for Retirement Enhancement being prepared, and also allows them for 2020. The
(SECURE) Act, which makes dramatic changes in IRS has revised tax forms and instructions to reflect

*This Supplement to J.K. Lasser’s Your Income Tax reflects tax developments as of February 18, 2020. Please revisit us at jklasser.com for further updates.

Supplement to J.K. Lasser’s Your Income Tax 2020 | 3