There is a new "above the line" deduction for up to $300 in charitable deductions that can be used by taxpayers who use the standard deduction. Some limits will apply.
The 60% of income limit on charitable contributions by those who itemized their deductions is waived for 2020. If you wish you can give away your entire salary.
Repayment on certain Federal student loans is suspended and no interest will accrue between now and September.
Employers may offer a new before-tax benefit to their employees: They may pay or allow the employee to defer up to $5,250 this year to repay student loans, and that money is not included in the employee's taxable income. This may be more popular than you would think because it would not cost the employer anything to offer this new benefit.
IRA owners have several new benefits.
- Required minimum distributions for 2020 are waived. The first-time RMDs for 2019 that have not yet been made are also waived.
- Certain owners who are affected by the coronavirus have the option to withdraw up to $100,000 of IRA funds, without being subject to the 10% penalty that would apply if they are under age 59 1/2. As always, the funds that are taken out are taxable, but the tax will not be payable if the funds are repaid to the account within three years, and if they are not repaid the tax payments can be spread over three years.