Are there any special tax breaks for 2020?

Charitable deductions for non-itemizers extended and expanded. For 2020, individuals who don’t itemize deductions can claim a federal income tax write-off for up to $300 of cash contributions to IRS-approved charities. The same $300 limit applies to both unmarried taxpayers and married joint-filing couples.

How can I avoid paying taxes in 2020?

As of right now, here are 15 ways to reduce how much you owe for the 2020 tax year:

1. Contribute to a Retirement Account.
2. Open a Health Savings Account.
3. Use Your Side Hustle to Claim Business Deductions.
4. Claim a Home Office Deduction.
5. Write Off Business Travel Expenses, Even While on Vacation.

Will there be tax breaks for 2021?

In 2021, the standard deduction amounts to $12,550 for single taxpayers and married taxpayers who file separate returns, while married couples filing jointly can claim an amount twice that size at $25,100. Another tax deduction 2021 saw broaden came in the form of higher contribution limits to health savings accounts.

Are there any tax loopholes you should know about?

Some will allow you to take a deduction that lowers the amount of money you have to pay taxes on; others are tax credits that reduce the amount of tax you have to pay, but they are all tax loopholes you might not be aware of. Last updated: March 12, 2020 20 Jobs With the Most Financial Security.

What is the income limit for the child tax credit 2020?

For tax year 2020, the income limit ranges from $15,820 if you’re single and have no children to $56,844 if you’re married and filing jointly and have three or more qualifying children. You must qualify for the credit by having business income or income from a job.

What are the tax loopholes for the middle class?

A wealthy person with a primary residence and a ski chalet or beach house can reap some serious tax breaks. Tax Loopholes for the Middle Class Deductible IRA Contributions: Say you have a 401(k) through work that you fund with pre-tax dollars. That automatically reduces your taxable income.

How does the carried interest loophole affect hedge fund managers?

The carried interest loophole means your compensation gets taxed at a much lower rate than the regular income tax rate. While someone just as wealthy as a hedge fund manager would have their income taxed at the highest marginal tax rate, a hedge fund manager’s income is taxed at the long-term capital gains rate.