With the extension of federal and Iowa income tax filing deadlines, people have more time to get their tax documents in order.
Auditor Tom Kennedy of Hankel and Associates of Boone and Jefferson is reminding taxpayers of some recent changes in tax law.
“You can deduct $ 300 if that is deducted directly from your income (and) which you don’t need to list. So it comes straight from your taxable income. So $ 600 for a married person if they both donated $ 300. “
Kennedy notes that another major tax change did not require the minimum payout for people 70 ½ or older. However, Kennedy recommends using the minimum distribution for this one reason.
“If your income will (can) decrease in 2020, you will still have to make the required minimum distribution just because it may be taxed at a lower tax rate instead of having to take more out later. So something to think about and that is a bit of planning that you can do. “
The Iowa Department of the Treasury has extended the state income tax deadline from April 30th to June 1st, and the federal income tax deadline extended from April 15th to May 17th.