Mar 12, 2021 | COVID-19 Response, Firm Updates
The child and dependent care credit has been increased from 35% to 50% of eligible expenses for 2021 only and is also refundable. The credit is now worth up to $8,000 for one qualifying individual and up to $16,000 for two or more (an increase from being worth up to...
Mar 12, 2021 | COVID-19 Response, Firm Updates
The threshold for disqualified investment income has been raised to $10,000 permanently. For 2021, the applicable minimum age for individuals without children has been decreased to 19. However, there are two exceptions: the minimum age for students is 24, and the...
Mar 12, 2021 | COVID-19 Response, Firm Updates
Based on current law, the child tax credit is $2,000 per child with only half of the credit being refundable. On 2021 income tax returns, the credit will be fully refundable, and 17-year-olds will be eligible as qualifying children. The amount of the credit will be...
Mar 12, 2021 | COVID-19 Response, Firm Updates
The first $10,200 in unemployment benefits will be tax-free in 2020 for taxpayers making less than $150,000 per year. We are awaiting additional guidance from the IRS on anyone who has already filed on what they will need to do. Unemployment supplemental payments of...
Mar 12, 2021 | COVID-19 Response, Firm Updates
Economic impact payments are an advance payment of the recovery rebate credit received on the taxpayer’s income tax return. The newest round of economic impact payments will be $1,400 for individuals ($2,800 for married filing joint) with an additional $1,400 for each...
Mar 12, 2021 | COVID-19 Response, Firm Updates
The American Rescue Plan of 2021 was signed into law by President Biden on March 11, 2021 and provides many new tax provisions and funding to various sectors of the United States. The notable financial changes are listed below broken out between individual and...
