Page 5 - 2020 Publication 17
P. 5
Page 3 of 138
The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.
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