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Tax Law Changes in 2020

With fax-filing deadlines just around the corner, it’s important to keep a close eye on the big tax law changes happening this year. Our team at Jacovetti Law, P.C. has put together the biggest changes you should be aware of before you start gathering your W-2s and 1040s.

Tax Law Changes Implemented this Year

Congress decided to revive expired tax breaks last December to address short-term needs. Below are some of the significant tax law changes that may affect you.

  • Natural disaster tax breaks: Under the new laws, victims of natural disasters, such as wildfires, hurricanes, or major floods, may benefit from tax breaks. They may obtain employer credits and wavers for early withdrawals from their retirement plans.
  • Canceled debt taxes: Although canceled debt is a taxable income, the IRS is making an exception for any canceled mortgage used to purchase a principal residence.
  • College tuition: Some families will be eligible for a deduction in college tuition. Deductions may range from $2,000 to $4,000.
  • Penalties for not having health insurance: Americans who don’t have health insurance face tax penalties of up to 2.5% of a household’s taxable income under the Affordable Care Act. However, the Tax Cuts and Jobs Act of 2017 removed the penalties for 2019, so you won’t face penalties if you were uninsured last year.
  • IRA modifications: Starting in 2020, those who inherited IRAs will need to drain their accounts within ten years. This means that people will be required to pay an overall higher tax bracket.

Our New York Debt Relief Attorney Is Ready to Help

If you’re struggling to pay the IRS, you need an experienced attorney on your side. At Jacovetti Law, P.C., we know that dealing with debt is overwhelming and stressful. With our team on your side, you can find a feasible debt repayment solution for you or your business. We’ve been helping people and business owners all across New York obtain financial freedom, let our team help you too.

Contact our team at (516) 217-4488 for a free 30-minute consultation!