Volume 44 Issue 2 Stories

Tax Season 2021     What’s new for retirees?

Amy Wiggins
Share on
Photo by Kelly Sikkema on Unsplash

Whew! There’s a lot to keep track of when it comes to changing tax laws amid COVID stimulus packages. This year we even have an extra month for the last-minute dash to dig out the paperwork for our taxes — the IRS extended the filing deadline for 2020 taxes to May 15.  

There are also important tax changes for 2021 impacting retirees — changes that could increase your tax burden if you don’t take advantage of some smart tax-saving strategies.

Last year, the CARES Act temporarily suspended required minimum distributions (RMDs) for IRA and retirement plans. However, the one-year hiatus on required withdrawals is over. 

The RMD is back for 2021. This means some seniors may face higher tax payments to the IRS. Why? The money they’re required to take from their retirement accounts once they reach 72 (or 70 ½ if you reached 70 ½ before January 1, 2020) counts as taxable income. 

Plan for your 2021 RMD – put it toward a good cause while giving yourself the gift of a tax break!

A qualified charitable distribution (QCD) can be used to satisfy all or part of the required minimum distribution from an IRA. What’s the tax benefit? The funds don’t count as income.

This is a smart way for seniors taking advantage of the standard deduction to still get a taxable benefit from their charitable giving. 

“For those of us who qualify to make QCDs, they’re as close to a free tax lunch as you can get these days,” wrote business journalist Allan Sloan in a column for the Washington Post.

If you are a retiree who is subject to RMDs and have a passion for helping the hungry, don’t miss out on a great strategy to reduce your income tax. 

Call Amy Wiggins at (239) 567-3341 or email awiggins@echonet.org for 
more information. 

Next Story

Boosting Incomes in West Africa

The population of Burkina Faso is growing, putting increasing pressure on the country’s limited arable land. Agriculture, the backbone of Burkina Faso’s economy, continues to show potential as a strong way to sustain a family’s livelihood.
Feature

Sharing the Moringa Journey

Rick and Jeri Kemmer’s journey with the moringa tree started in the year 2000 on an ECHO tour. Since then — with ECHO’s resources and partnership — their passion has equipped thousands across 23 countries to help the hungry. Noah Coleman shares his recent Zoom conversation with Rick Kemmer about how ECHO has encouraged them along the way. Noah, a current ECHO Intern, previously studied moringa in East Africa for his master’s degree.

From David Erickson, President/CEO

I’m so excited that you have this issue of ECHO News in your hands! It is a “picture window” on how ECHO works. And, by God’s grace and goodness, it is a rich, extensive, and deeply encouraging view.

Assisting the COVID-19 Unemployed

Working to equip their local community to feed itself during this extended period of unemployment for so many, ECHO’s East Africa Team has already trained more than 1,000 women and youth.

Tanzanian Innovator Improves Biogas Stove

Recently, there has been scarcity of biogas stoves in Tanzania. Biogas stoves use organic matter such as manure and kitchen scraps to produce gas for cooking and lighting and fertilizer for crops.
Feature

Seeds Amidst Civil Unrest

Thriving gardens in Myanmar are now bursting with seeds. Some seeds were sourced from ECHO, others from local seed exchanges, but all are providing much-needed sources of nutritious plants while borders are closed.
Intern Spotlight

Intern Spotlight: Michelle Boutell

My name is Michelle Boutell, and I started my Monsoon Internship at ECHO in March 2020.
In Their Own Words

In Their Own Words: Patrick Iradukunda

My name is Patrick Iradukunda. I am from Rwanda, a student in university studying Agroforestry. My motivation for life is to see a transformed society, I want to be an agent of change that I want to see in my community.

Extraordinary Plants: Quinoa

The quinoa grain was an important part of the Incan Empire, which extended over much of the Andes Mountains.
Feature

Time on their hands, a mission on their hearts

More than 800 volunteers lend their time and effort in Florida every year to help further ECHO’s mission, and half of them are retired. They could be golfing, reading, or working in a woodshop, but instead they choose ECHO.

Tax Season 2021: What’s new for retirees?

Whew! There’s a lot to keep track of when it comes to changing tax laws amid COVID stimulus packages.

Boosting Incomes in West Africa

The population of Burkina Faso is growing, putting increasing pressure on the country’s limited arable land. Agriculture, the backbone of Burkina Faso’s economy, continues to show potential as a strong way to sustain a family’s livelihood.