What's New in Taxes This Year? Part 2

Updated August 5, 2020 | Infoplease Staff

Home Sales

If you sold your main home in 1998 and all four of the following apply, you do not have to report the sale on your tax return.

1. No part of the home was used for business or rental purposes.
2. You (or your spouse if filing a joint return) owned and lived in the home as your main home for at least 2 years within the 5-year period ending on the date of sale.
3. You (and your spouse if filing a joint return) have not sold or exchanged another main home after May 6, 1997.
4. The selling price of the home is not over $250,000 ($500,000 if married and filing a joint return).

If all four of the conditions do not apply, or for further details, see Publication 523 on the IRS homepage.

Self-Employed Health Insurance Deduction

If you are self-employed, you may be able to deduct up to 45% of your health insurance.

Standard Mileage Rates

The rate for business use of a vehicle has increased to 32.5 cents a mile. Starting this year, you can use the business mileage rate even if you lease your vehicle. For charitable contributions, the rate has increased to 14 cents a mile.

Earned Income Credit (EIC)

You may be able to take this credit if you earned less than $30,095 (less than $10,030 if you do not have any qualifying children).

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