Below is a general overview of some of the key provisions impacting individuals. For complete details or questions on what this means for you, please contact our team.
- Individual recovery rebate/credit: Rebates of up to $1,200 for single filers and $2,400 for joint filers (with amounts increased by $500 per child) will be issued. Payments are subject to phase-outs beginning at $75,000/$150,000 adjusted gross income for single filers/joint filers. Individuals with no income, or whose income comes from entirely non-taxable means, are also eligible to receive the rebate. Individuals do not need to register or file for these rebates. They will be issued automatically through the IRS. Learn more.
- No 10% additional tax for coronavirus-related retirement plan distributions: Qualifying individuals can take distributions up to $100,000 without additional tax.
- Required minimum distribution requirement waived for 2020.
- $300 above-the-line charitable deduction: For the tax year beginning in 2020, the Act adds a deduction to the calculation of gross income for those who do not itemize deductions.
- Modification of limitations on individual cash charitable contributions during 2020: With certain exceptions, qualified cash contributions are not subject to the 60% limit.
- Increase in limits on contributions of food inventory: The contribution for those involved with the sale of food who donate charitable food during 2020 cannot exceed 25% of net income of the taxpayer (rather than 15%).
- Tax-excluded education payments by an employer temporarily include student loan repayments: Eligible student loan payments made by an employer before Jan. 1, 2021, are excluded from employee gross income.
For more information on business management, tax and HR information relating to COVID-19, please see our website.