As we continue to navigate the changes of the COVID-19 situation, we have recently written about the various changes the new CARES Act brought about for retirement accounts and Required Minimum Distributions (RMDs).
I wanted to touch on a few final changes that we thought were worth bringing to your attention, or at least serve as a reminder even if you are already aware of these changes. There is no shortage of daily information, and yesterday’s news can quickly be forgotten!
Although not actually in the CARES Act, a worthy mention is of course the tax filing deadline which has been delayed until July 15th. Of course, as of writing this we are already past the April 15th deadline! However, what is still timely in the coming months is a reminder for those who pay quarterly taxes. Currently, quarterly payments that were due on April 15th as well as June 15th are now deferred until July 15th. That means if you owed taxes for your 2019 return and you must pay quarterly taxes – you will have all of these balances due at once by July 15th! Fortunately, the deferral of these payments does give you more time to prepare and plan accordingly.
As a reminder, this also means that you now have additional time to make contributions to your retirement accounts. If you are eligible, contributions to your IRA, Roth IRA, or even Health Savings Account (HSA) can be made up until July 15th.
Student Loan Relief
To alleviate any financial strains caused by the coronavirus pandemic, those with Federal student loans can defer any payments through September 30th, 2020.
Charitable Giving Changes
The CARES Act brought a new change for 2020 allowing for a $300 “above-the-line” deduction for qualified charitable contributions. Above-the-what?
This essentially means that even if you take the standard deduction when filing your Federal taxes, you can still take up to a $300 deduction for your donations to qualified organizations. This is a great way to enjoy some potential tax savings even if you don’t normally itemize deductions on your taxes.
This creates an opportunity to be productive with any “found money” as I discussed in my previous blog, and benefit a wonderful organization that could use your donation during such a challenging time.
We are here to answer any of your questions and help you navigate these numerous changes. Stay safe and healthy!
Raymond James and its advisors do not offer tax or legal advice. You should discuss any tax or legal matters with the appropriate professional.