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2021 TAX FILINGS
December 2021

I hope you and your loved ones have a wonderful Christmas and New Year holiday season. Despite all the political turmoil, we have so much to be grateful for in this, the greatest country in the world. I remain positive.

We sent you either a hard copy or over the internet, a tax organizer which will help you get organized for the 2021 tax season which is right around the corner. 

LISTED BELOW ARE ADDITIONAL THOUGHTS ON THE UPCOMING 2021 TAX SEASON. MORE CHANGES ARE IN THE WORKS. LET NO MAN RELAX AS CONGRESS IS IN SESSION.

• Write-off of state and local taxes restricted to $10,000
• Charitable contributions for people that itemized has been increased to 60% of AGI from 50%. If you don't itemize, you can deduct above the line $600 and $300 if single

Many itemized deductions, including the following, were eliminated:

• Unreimbursed employee expenses, such as mileage, to the extent they exceeded 2% of AGI 

• Tax preparation fee expenses
• Alimony payments
• Investment expenses
• Moving expenses to move to a new job
• Personal Casualty losses unless associated with disaster relief legislation
• Eligible business use of a vehicle is 56 cents down from 57.5 cents
• Charity mileage at 14 cents per mile
• Eliminated the tuition and fees deduction
• The amount of income you earned in order to file a tax return has been increased to $12,550 for singles and $25,100 for married filing jointly. These are the standard deduction amounts and there are no deductions for exemptions.

The Further Consolidation Appropriation Act of 2021 and the American Rescue Plan signed into law provides the following:

• Extends the cancellation of qualified residence indebtedness exclusion from gross income through the 2025 year
• Extends the residential energy efficient property credit through the end of 2023
• Increases child tax credit to $3,000 if under 17 years of age and $3,600 if under 5 by    December 31, 2021
• Extends the deductibility of 100% of AGI for cash contributions to qualified charities
• No taxes if from your IRA and not a 401(k) plan
• Allows you to make IRA contributions of up to $6,000 or $7,000 if over the age of 50 by April 15, 2022

These are just a few of the changes and there are many more. Please make sure you work with a professional again this year to prepare your tax returns. Keep track of your estimated tax payments and let us know which payments are for previous years so they are not reported for the current year.

The accuracy of your tax returns depends in large part on us receiving all of your documents. Please make sure to let us know before filing your tax returns if you are no longer involved in a brokerage firm or in investments involving K-1s. Make sure to always review your tax returns. They are ultimately your responsibility.

Thanks for trusting us.

Sincerely,
Chuck Anderson, CPA

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HAPPY THANKSGIVING
​November 2021

I hope you and your family are in good health and enjoying your life despite all of our challenges. Happy Thanksgiving to you no matter...
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