Wills, Trusts & Estates Prof Blog

Editor: Gerry W. Beyer
Texas Tech Univ. School of Law

Thursday, February 13, 2020

Top 10 Tax Planning Tips for 2020


  • Evaluate the benefits of scheduling qualified charitable distributions from your IRAs. They can satisfy all or part of your required minimum distribution, and the portion transferred to the charity becomes non-taxable.
  • Your tax advisor can help ensure you have a proper amount of withholding taken out of any standard IRA distributions.
  • As you make charitable contributions throughout the year, save the documents in one spot, both cash and non-cash gifts.
  • Store tax documents in ONE SPOT as they come in the mail.
  • 1040-SR, US Tax Return for Seniors, is now available for taxpayers who are 65 or older, and feature longer fonts
  • This is the second filing season under the Tax Cuts and Jobs Act of 2017, expect your tax preparer to work on cleaning up and formalizing documentation rather than looking for any big changes.
  • If you are paying an individual caregiver, make sure you speak with your CPA about payroll tax reporting requirements if you haven't already. If the person receiving the care is chronically ill as certified by a health practitioner, the payments may be deducted as medical expenses.
  • Consult with your estate planning attorney about planning large gifts, as each taxpayer can gift $15,000 per year per recipient without having to file a gift tax return.
  • Payments made directly to medical providers or tuition payments made to educational institutions on another person's behalf do not count towards your lifetime gifting limit - such as paying your child's or grandchild's.

See Top 10 Tax Planning Tips for 2020, Chambliss Law, February 6, 2020.

Special thanks to Jim Hillhouse (Professional Legal Marketing (PLM, Inc.)) for bringing this article to my attention.


Current Affairs, Estate Planning - Generally, Gift Tax, Income Tax, Non-Probate Assets | Permalink


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