Tax laws are something that are always evolving and changing. If you aren’t in the tax business, it can be hard to keep track of it all. With all of the changes that have been taking place with Covid-19, it is harder than ever to keep it all straight. It is important that you are aware of these changes though so that you can get your tax return filed without any delays or problems. Mark Dicus & Company is here to talk about some changes to tax laws that could have an impact on your 2021 tax return.
Child Tax Credit Payments
In the past, couples with children have gotten a child tax credit, but they have gotten that money in one lump sum at the end of the year in their tax return. The past year, there have been payments that have been given each month as a payment to help with some of the problems Covid-19 has brought on. You should get a letter from the IRS with all the details about the payments you received. Make sure you keep that to refer to when doing your taxes.
Are Unemployment Benefits Taxable in 2021
There are many Americans that got a sizeable tax break over the last year because of Covid. One of those areas is unemployment benefits. They were getting a tax break of up to 10,200 on unemployment benefits per couple. That is no longer the case. That was only a temporary change that was made for the 2020 tax year. Everything will go back to normal in 2021.
Expansion of the $300 Charitable Contribution Deduction for Married Filing Jointly
In the past, you had to itemize your tax return to take advantage of any of the tax breaks that came with making charitable donations. Last year and likewise, this year, you will be able to claim a maximum of $300 for a single filer and $600 for those that are filing a joint tax return. They do have to be contributions that are made to qualified public charities though.
What is the Medical Deduction Threshold for 2021?
If you are someone that struggles with high medical bills each year, you can count on the threshold for medical expenses permanently being lowered. It is now going to be permanently lowered to 7.5% of your adjusted gross income. This can help ease the burden of medical expenses for those that struggle to juggle the cost of medical care.
Tax Preparation, Filing, Planning & More in Salt Lake City, St. George, West Valley City, Provo, Orem, West Jordan & Greater Cedar City, Utah
If you’re having a difficult time keeping all of the ever-changing tax laws straight, you can turn to Mark Dicus & Company to help you prepare your taxes. We know the ins and outs of taxes and can help you take advantage of any tax credits and deductions that you are eligible for. It is our goal to help you get the largest return possible. Call us today!