Page 5 - 2020 Publication 17
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         What's New          Fileid: … ations/P17/2020/A/XML/Cycle03/source               14:38 - 19-Jan-2021

         This section summarizes important   spread of coronavirus. For   of  the  social  security  tax  imposed   beginning  April  1,  2020,  and  end-
         tax  changes  that  took  effect  in   more information, see the in-  for the period beginning on March   ing December 31, 2020. For more
         2020.  Most  of  these  changes  are   structions for Schedule 1   27,  2020,  and  ending  December   information, see the instructions for
         discussed   in   more   detail   (Form 1040), line 10, and Ed-  31,  2020.  For  more  information,   Form 7202 and Schedule 3 (Form
         throughout this publication.   ucator Expenses in Pub. 529,   see  the  instructions  for  Sched-  1040), line 12b.
         Future  developments.  For  the   Miscellaneous Deductions.  ule SE (Form 1040) or Schedule H   Form 1040-X, Amended U.S. In-
                                                               (Form 1040). For information on re-
         latest information about the tax law   • If you were impacted by cer-  porting  the  deferral,  see  the  in-  dividual  Income  Tax  Return.
         topics  covered  in  this  publication,   tain federally declared disas-  structions  for  Schedule  3  (Form   Starting  last  summer,  taxpayers
         such as legislation enacted after it   ters, special rules may apply   1040), line 12e.  were able to file their Form 1040-X
         was  published,  go  to  IRS.gov/  to distributions from your IRA,               electronically  using  available  tax
         Pub17.                         profit-sharing plan, or retire-  Coronavirus  distributions.  Re-  software  products.  The  electronic
                                                                                          Form  1040-X  will  be  implemented
                                                               cent legislation contains new rules
         Publication  17  changes.  We   ment plan. See Pubs. 590-B   that  provide  for  tax-favored  with-  in  phases.  During  the  first  phase,
                                        and 575 for details.
         have  removed  the  following  2019                   drawals, income inclusion, and re-  only  tax  year  2019  Forms  1040
         chapters from this publication: 6, 8,   Form  1040-NR  revision.  Form   payments for individuals who were   and 1040-SR returns can be amen-
         9,  10,  13,  14,  15,  16,  18,  19,  20,   1040-NR has been revised to more   diagnosed  with  or  suffered  eco-  ded  electronically.  Taxpayers  will
         22, 24, 25, 26, 29, 30, 31, 33, 34,   closely  follow  the  format  of  Forms   nomic losses as a result of the co-  still have the option to submit a pa-
         35,  and  36.  You  can  find  most  of   1040  and  1040-SR.  Beginning  in   ronavirus.  See  Coronavirus  Distri-  per  version  of  the  Form  1040-X
         the information previously found in   2020,  Form  1040-NR  will  use   butions  in  Pub.  590-B  for  more   and  should  follow  the  instructions
         those chapters in the primary publi-  Schedules 1, 2, and 3.  information.       for  preparing  and  submitting  the
         cation.  Please  see  2020  Publica-  Charitable  contributions.  If  you        paper form.
         tion 17 changes, later.    don't  itemize  your  deductions  on   Qualified  birth  or  adoption  dis-  Schedule LEP (Form 1040), Re-
                                                               tribution.  Beginning  in  tax  years
         Due date of return.  File your tax   Schedule A (Form 1040), you may   after December 31, 2019, you can   quest  for  Change  in  Language
         return by April 15, 2021. See chap-  qualify to take a deduction for char-       Preference.  Schedule  LEP  is  a
         ter 1.                     itable  contributions  of  up  to  $300.   take  a  distribution  from  your  IRA   new  form  that  allows  taxpayers  to
                                                               without it being subject to the 10%
                                    For  more  information,  see  the  in-
         Economic    impact    pay-  structions  for  Forms  1040  and   additional  tax  for  early  distribu-  state  a  preference  to  receive  writ-
                                                                                          ten  communications  from  the  IRS
         ments—EIP  1  and  EIP  2.  Any   1040-SR, line 10b.  tions.  For  more  information,  see   in  a  language  other  than  English.
         economic impact payments you re-                      Pub. 590-B.                For  more  information,  including
         ceived  are  not  taxable  for  federal   Temporary suspension of limits         what  languages  are  available  and
         income  tax  purposes,  but  they  re-  for  cash  contributions.    For  tax   Qualified  disaster  distributions.   how to file, see Schedule LEP.
         duce your recovery rebate credit.  year  2020,  certain  cash  contribu-  Special  rules  provide  for  tax-fa-
                                    tions  you  made  are  not  subject  to   vored distributions from and repay-  Standard  mileage  rates.  The
         Recovery  rebate  credit.  This   the  60%  limit  for  cash  contribu-  ments  to  certain  retirement  plans   2020 rate for business use of your
         credit is figured like last year's eco-  tions.  For  more  information,  see   for  taxpayers  who  suffered  eco-  vehicle  is  57.5  cents  a  mile.  The
         nomic impact payment, except eli-  Pub. 526.          nomic losses as a result of certain   2020 rate for use of your vehicle to
         gibility and the amount of the credit                 disasters in tax years 2018, 2019,   get medical care or to move is 17
         are  based  on  your  tax  year  2020   Standard  deduction  amount  in-  and  2020.  However,  these  disas-  cents  a  mile.  See  Moving  Expen-
         information.  For  more  information,   creased.  For  2020,  the  standard   ters do not include major disasters   ses  in  Pub.  3,  Armed  Forces'  Tax
         see the instructions for Forms 1040   deduction  amount  has  been  in-  declared  only  by  reason  of   Guide.
         and 1040-SR, line 30, and the Re-  creased for all filers. The amounts   COVID-19.  Alternative  minimum  tax  (AMT)
         covery Rebate Credit Worksheet to   are:                 For  your  2020  return,  these   exemption  amount  increased.
         figure your credit amount.   • Single or Married filing sepa-  qualified  disaster  distributions  are   The AMT exemption amount is in-
         Other  taxpayer  relief.  Recent   rately—$12,400;    those  qualified  disaster  distribu-  creased  to  $72,900  ($113,400  if
         legislation  provided  certain  tax-re-  • Married filing jointly or Qualify-  tions  reported  on  the  2020  Form   married  filing  jointly  or  qualifying
         lated benefits, including the follow-  ing widow(er)—$24,800; and  8915-C,  Qualified  2018  Disaster   widow(er); $56,700 if married filing
         ing.                         • Head of household—$18,650.  Retirement  Plan  Distributions  and   separately).  The  income  levels  at
                                                                                          which  the  AMT  exemption  begins
                                                               Repayments,  and  described  in  its
           • Election to use your 2019   See chapter 10.       instructions;   the   2020   Form   to  phase  out  have  increased  to
             earned income to figure your                      8915-D,  Qualified  2019  Disaster   $518,400 ($1,036,800 if married fil-
             2020 earned income credit.   Virtual  currency.  If,  in  2020,  you   Retirement  Plan  Distributions  and   ing jointly or qualifying widow(er)).
             For more information, see the   engaged in a transaction involving   Repayments,  and  described  in  its
             instructions for Forms 1040   virtual  currency,  you  will  need  to   instructions;   the   2020   Form   Qualified  business  income  de-
             and 1040-SR, line 27, for   answer  the  question  on  page  1  of   8915-E,  Qualified  2020  Disaster   duction.  The simplified worksheet
             more information on this elec-  Form 1040 or 1040-SR. See Virtual   Retirement  Plan  Distributions  and   for figuring your qualified business
             tion.                  Currency  in  the  Instructions  for   Repayments  (Use  for  Coronavi-  income  deduction  is  now  Form
                                                                                          8995,  Qualified  Business  Income
           • Election to use your 2019   Forms 1040 and 1040-SR. In 2019,   rus-Related Distributions), and de-  Deduction Simplified Computation.
                                    this question was on Schedule 1.
             earned income to figure your                      scribed in its instructions. For more   If you don't meet the requirements
             2020 additional child tax   Deductible  IRA  contributions.   information, see chapter 9.  to  file  Form  8995,  use  Form
             credit. For more information,   You no longer need to be younger   Credits for sick and family leave   8995-A,  Qualified  Business  In-
             see the instructions for Forms   than age 70 1 /2 to take a deduction   for  certain  self-employed  indi-  come  Deduction.  For  more  infor-
             1040 and 1040-SR, line 28,   for  your  contributions  to  an  IRA.   viduals.  The  Families  First  Coro-  mation,  see  each  form's  instruc-
             and the Instructions for   See the instructions for Schedule 1   navirus  Relief  Act  (FFCRA)  helps   tions.
             Schedule 8812 for more infor-  (Form 1040), line 19.  self-employed  individuals  affected   Adoption  credit.  The  adoption
             mation on this election.  Coronavirus  tax  relief  for  cer-  by  coronavirus  by  providing  paid   credit  and  the  exclusion  for  em-
           • Educator expenses include   tain individuals.  The Coronavirus   sick  leave  and  paid  family  leave   ployer-provided  adoption  benefits
             amounts paid or incurred after   Aid, Relief, and Economic Security   credits equivalent to those that em-  have  both  increased  to  $14,300
             March 12, 2020, for personal   (CARES)  Act  permits  certain  indi-  ployers  are  required  to  provide   per  eligible  child  in  2020.  The
             protective equipment, disin-  viduals  who  file  Schedule  SE   their  employees  for  qualified  sick   amount begins to phase out if you
             fectant, and other supplies   (Form 1040) or Schedule H (Form   leave  wages  and  qualified  family   have  modified  adjusted  gross  in-
             used for the prevention of the   1040) to defer the payment of 50%   leave wages paid during the period   come   (MAGI)   in   excess   of
         Publication 17 (2020)                                                                                Page 1
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