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IRS Publications That Provide Rate Allowed for Operating Expenses for a Car When You More Detail on These Topics If You Need It Userid: CPM Schema: tipx Leadpct: 100% Pt. size: 10 Draft Ok to Print AH XSL/XML Fileid: … tions/P554/2020/A/XML/Cycle04/source (Init. & Date) _______ Page 1 of 38 16:01 - 14-Jan-2021 The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing. Department of the Treasury Contents Internal Revenue Service What's New .............................. 1 Publication 554 Reminders ............................... 2 Cat. No. 15102R Introduction .............................. 2 Chapter 1. 2020 Filing Requirements .......... 5 Tax Guide General Requirements .................... 5 Chapter 2. Taxable and Nontaxable Income ..... 6 Compensation for Services ................. 6 for Seniors Retirement Plan Distributions ................ 7 Social Security and Equivalent Railroad For use in preparing Retirement Benefits ................... 13 Sickness and Injury Benefits ............... 16 2020 Returns Life Insurance Proceeds .................. 17 Sale of Home .......................... 18 Reverse Mortgages ..................... 20 Other Items ........................... 20 Chapter 3. Adjustments to Income ........... 21 Individual Retirement Arrangement (IRA) Contributions and Deductions ............ 21 Chapter 4. Deductions .................... 22 Standard Deduction ..................... 22 Itemized Deductions ..................... 23 Chapter 5. Credits ........................ 27 Credit for the Elderly or the Disabled ......... 27 Child and Dependent Care Credit ........... 30 Earned Income Credit (EIC) ................ 30 Chapter 6. Estimated Tax .................. 32 Who Must Make Estimated Tax Payments ..... 32 Chapter 7. How To Get Tax Help ............. 32 Index .................................. 36 Future Developments For the latest information about developments related to Pub. 554, such as legislation enacted after it was published, go to IRS.gov/Pub554. What's New Coronavirus-related distributions. The additional tax on early distributions doesn’t apply to coronavirus-related distributions. See Pub. 590-B, Distributions from Individ- ual Retirement Arrangements, and Form 8915-E, Quali- fied 2020 Disaster Retirement Plan Distributions and Re- payments, for more details. Maximum age for traditional IRA contributions. The Get forms and other information faster and easier at: • IRS.gov (English) • IRS.gov/Korean (한국어) age restriction for contributions to a traditional IRA has • IRS.gov/Spanish (Español) • IRS.gov/Russian (Pусский) been eliminated. • IRS.gov/Chinese (中文) • IRS.gov/Vietnamese (TiếngViệt) Jan 14, 2021 Page 2 of 38 Fileid: … tions/P554/2020/A/XML/Cycle04/source 16:01 - 14-Jan-2021 The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing. Increase in age for mandatory distributions. Individu- other blanks in the Paid Preparer's area of your return. Re- als who reach age 701/2 on January 1, 2020, or later may member, however, that you are still responsible for the ac- delay distributions until April 1 of the year following the curacy of every item entered on your return. If there is any year in which they turn age 72. underpayment, you are responsible for paying it, plus any Temporary waiver of minimum required distributions interest and penalty that may be due. from certain retirement plans. The requirement to re- Third party designee. You can check the “Yes” box in ceive a minimum distribution has been waived for 2020 for the Third Party Designee area of your return to authorize defined contribution plans and IRAs (but not for defined the IRS to discuss your return with your preparer, a friend, benefit plans). This includes distributions for those who a family member, or any other person you choose. This al- have a beginning year for required minimum distributions lows the IRS to call the person you identified as your des- starting in 2020. ignee to answer any questions that may arise during the Contribution deadline extension. The 2019 traditional processing of your return. It also allows your designee to and Roth IRA contribution deadline was extended to July perform certain actions. See your income tax return in- 15, 2020. structions for details. Standard deduction amount increased. For 2020, the Employment tax withholding. Your wages are subject standard deduction amount has been increased for all fil- to withholding for income tax, social security tax, and ers. The amounts are: Medicare tax even if you are receiving social security ben- efits. • Single or Married filing separately — $12,400. Social security benefits information. Social security Married filing jointly or Qualifying widow(er) — • beneficiaries may quickly and easily obtain various infor- $24,800. mation from SSA’s website with a my Social Security ac- • Head of household — $18,650. count, including getting a replacement SSA-1099 or SSA- Alternative minimum tax exemption increased. The 1042S. For more information, go to SSA.gov/myaccount. AMT exemption amount has increased to $72,900 See Obtaining social security information, later. ($113,400 if married filing jointly or qualifying widow(er); Photographs of missing children. The Internal Reve- $56,700 if married filing separately). nue Service is a proud partner with the National Center for Earned income credit. The maximum amount of income Missing & Exploited Children® (NCMEC). Photographs of you can earn and still get the credit has increased. You missing children selected by the Center may appear in may be able to take the credit if you earn less than: this publication on pages that would otherwise be blank. You can help bring these children home by looking at the • $15,820 ($21,710 if married filing jointly), don't have a photographs and calling 800-THE-LOST (800-843-5678) qualifying child, and are at least 25 years old and un- if you recognize a child. der 65; • $41,756 ($47,646 if married filing jointly), and you have one qualifying child; Introduction • $47,440 ($53,330 if married filing jointly), and you have two qualifying children; or The purpose of this publication is to provide a general overview of selected topics that are of interest to older tax- • $50,954 ($56,844 if married filing jointly), and you payers. The publication will help you determine if you have three or more qualifying children. need to file a return and, if so, what items to report on your For more information, see Earned Income Credit, later. return. Each topic is discussed only briefly, so you will find Standard mileage rate. For 2020, the standard mileage references to other free IRS publications that provide rate allowed for operating expenses for a car when you more detail on these topics if you need it. use it for medical reasons decreased to 17 cents a mile. Table I has a list of questions you may have about filing your federal tax return. To the right of each question is the location of the answer in this publication. Also, at the back of this publication there is an index to help you search for Reminders the topic you need. While most federal income tax laws apply equally to all Form 1040-SR. Form 1040-SR, U.S. Tax Return for Se- taxpayers, regardless of age, there are some provisions niors, was introduced in 2019. You can use this form if you that give special treatment to older taxpayers. The follow- are age 65 or older at the end of 2020. The form generally ing are some examples. mirrors Form 1040. However, the Form 1040-SR has larger text and some helpful tips for older taxpayers. See • Higher gross income threshold for filing. You the Instructions for Forms 1040 and 1040-SR for more in- must be age 65 or older at the end of the year to get formation. this benefit. You are considered age 65 on the day be- fore your 65th birthday. Therefore, you are considered Tax return preparers. Choose your preparer carefully. If age 65 at the end of the year if your 65th birthday is on you pay someone to prepare your return, the preparer is or before January 1 of the following year. required, under the law, to sign the return and fill in the Page 2 Publication 554 (2020) Page 3 of 38 Fileid: … tions/P554/2020/A/XML/Cycle04/source 16:01 - 14-Jan-2021 The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing. • Higher standard deduction. If you don't itemize de- Comments and suggestions. We welcome your com- ductions, you are entitled to a higher standard deduc- ments about this publication and suggestions for future tion if you are age 65 or older at the end of the year. editions. You are considered age 65 at the end of the year if You can send us comments through IRS.gov/ your 65th birthday is on or before January 1 of the fol- FormComments. Or, you can write to the Internal Reve- lowing year. nue Service, Tax Forms and Publications, 1111 Constitu- • Credit for the elderly or the disabled. If you qualify, tion Ave. NW, IR-6526, Washington, DC 20224. you may benefit from the credit for the elderly or the Although we can’t respond individually to each com- disabled. To determine if you qualify and how to figure ment received, we do appreciate your feedback and will this credit, see Credit for the Elderly or the Disabled, consider your comments and suggestions as we revise later. our tax forms, instructions, and publications. Do not send tax questions, tax returns, or payments to the above ad- Return preparation assistance. The IRS wants to make dress. it easier for you to file your federal tax return. You may find Getting answers to your tax questions. If you have it helpful to visit a Volunteer Income Tax Assistance a tax question not answered by this publication or the How (VITA), Tax Counseling for the Elderly (TCE), or American To Get Tax Help section at the end of this publication, go Association of Retired Persons (AARP) Tax-Aide site near to the IRS Interactive Tax Assistant page at IRS.gov/ you.
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