More cash donations to charity can be deducted for 2020 under the new law. The 60%- of- AGI limit on cash donations by individuals is suspended. Gifts to donor-advised funds and private non-operating foundations are excluded. The taxable income limit on charitable gifts of cash by C corps rises to 25%. Plus, nonitemizers can write off up to $300 of charitable cash contributions. This is new above-the-line deduction for individuals who do not file Schedule A.

The package includes three key retirement-related easings for 2020. Individuals can skip taking their required minimum distributions from IRAs and workplace plans, such as a 401(k) or 403(b), for this year without penalty. The 10% penalty on preage-59 1/2 payouts. Also, funds repaid within three years are treated as tax-free rollover distributions. Otherwise, tax is spread over three years. Eligible individuals can borrow more from workplace plans such as 401(k)s, up to the lesser of $100,000 or 100% of the account balance, until Sept. 23, and repayments on retirement plan loans due in 2020 are delayed for on year.

Stimulus Legislation Details

by | May 26, 2020 | Tallahassee Tax Service | 0 comments