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Seven Questions...
Less than three minutes!
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Contributions to IRAs Made by July 15, 2020 Deductible on 2019 Tax Return
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The IRS has reminded taxpayers that contributions to traditional Individual Retirement Arrangements (IRAs) made by July 15, 2020 are deductible on a 2019 tax return. Further, taxpayers can file their 2019 tax return and claim the deduction before the contribution is actually made. However, the contribution must then be made by the July 15 due date of the return, not including extensions.
If a taxpayer is covered by a workplace retirement plan, the deduction for contributions to a traditional IRA for tax year 2019 is reduced if the taxpayer’s
Modified Adjusted Gross Income (MAGI)
is:
- more than $64,000 but less than $74,000 for a single individual, head of household, or a married person filing separately who didn’t live with their spouse at any time in 2019. No deduction if $74,000 or more;
- more than $103,000 but less than $123,000 for a married couple filing a joint return or a qualifying widow(er). No deduction if $123,000 or more;
- more than $193,000 but less than $203,000 for a married couple filing a joint return where one spouse is covered by a retirement plan at work and the other is not. No deduction if $203,000 or more; and
- less than $10,000 for a married individual filing separately and lived with their spouse at any time during 2019. No deduction if $10,000 or more.
The Retirement Savings Contributions Credit, also known as the
Saver’s Credit
, is often available for IRA contributors if their adjusted gross income falls below certain levels. For 2019, taxpayers may be able to claim the credit if their MAGI was not more than:
- $64,000 for married filing jointly;
- $48,000 for head of household; and
- $32,000 for single, married filing separately or a qualifying widow(er).
Taxpayers should use
Form 8880
, Credit for Qualified Retirement Savings Contributions, to claim the Saver’s Credit. Worksheets related to IRAs are available in the
Form 1040 Instructions
or in Publication 590-A, Contributions to Individual Retirement Arrangements. Taxpayers should also be aware that special rules allow for tax-favored withdrawals and repayments from certain retirement plans for those affected by the
coronavirus
or those who suffer economic loss as a result of certain major disasters. Taxpayers can find answers to questions, get forms and instructions and find easy-to-use tools available on the IRS official website.
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How to Plan a Summer 'Safecation': What to Know About Road Trips, Flying, Hotels and More
by Maura Hohman, Today Digital
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(Before you hit the road, check travel restrictions and quarantine rules for your desired destination. Some states require visitors to stay inside for two weeks upon arrival.)
This guide breaks down the safest ways to fly, drive, visit loved ones, stay at hotels and more for your summer vacation during the coronavirus outbreak.
The good news is you can travel this summer, especially if you stay within U.S. borders, as there are still many restrictions on international travel — and if you follow basic precautions.
"It’s OK to have fun, (but) do it safely," Saad Omer, director of Yale Institute for Globa
l Health in New Haven, Connecticut, told TODAY. "You just need to strike a balance."
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COVID-19 One Step Forward - Two Steps Back
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Every industry is adapting to life during a pandemic. New McKinsey research examines the implications for six sectors.
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Support your local businesses!!
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You can make a difference - we are all in this together!
#newyorktough
Stay safe!!
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25 SUFFOLK COURT
HAUPPAUGE, NY 11788-3715
T: 631.434.9500 F: 631.434.9518
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245 PARK AVENUE, 39 FLOOR
NEW YORK, NY 10167
T: 212.792.4075
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