Now that 2020 is finally behind us, it’s time to start thinking about your 2020 taxes. Here are some changes that may impact you:

  1. Standard deductions increase to $12,400 for single filers and $24,800 for married filing jointly.
  2. Tax rates remain the same, but income amounts in each bracket have increased.
  3. Every taxpayer can claim up to $300 in charitable contributions without needing to itemize deductions.
  4. Received unemployment in 2020? That is taxable income. You’ll receive a 1099 with the total amount.
  5. Received a stimulus check? That’s an advance on the Recovery Rebate Credit and is not taxable.
  6. Didn’t receive a stimulus check? If you’re eligible, you’ll receive the same amount in the Recovery Rebate Credit.
  7. No RMDs for retirees in 2020 and the age has increased from 70.5 to 72.
  8. 2020 Retirement plan withdrawals of up to $100,000 are not subject to the 10% early withdrawal penalty.
  9. Up to $10,000 from a 529 plan can be used to pay down student loan debt.
  10. The contribution limit for 401k increased to $19,500.

But there is some bad news. For all of those W-2 employees that started working from home in 2020, those expenses are not deductible. But you probably saved on commuting, clothing and coffee!