TaxBreak

Happy lunar new year to all who celebrate! Start your year off right by visiting us for a consultation! (Tax season begins Monday.)

2021 Donation Rules:

For cash contributions to eligible organizations, taxpayers can claim charitable deduction (without itemized deduction) up to $600 for Married Filing Jointly and $300 for other filing status.

2021 Earned Income Tax Credit Rules:

- The investment income limit has increased to $10,000.
- Minimum age has been lowered to 19 (few exceptions applied).
- No need to be under age 65 to claim EITC without a qualifying child.

2021 Standard Deduction Update:

For the tax year 2021, standard deduction increases to $25,100 for Married Filing Jointly (up $300 from the prior year), to $12,550 for Single taxpayers and Married Filing Separately (up $150), and to $18,800 for Heads of Households (up $150).

Tax filing season officially begins Jan 24.

Tax tip: prepare for the upcoming tax season by collecting Letter 6475 (Economic Impact Payments) and, if applicable, Letter 6419 (Child Tax Credit) both of which you should receive from the IRS within the upcoming weeks.

Happy holidays! We are closed this Friday (12/24) but will observe regular business hours for the rest of the holiday season!

Breaking news: PPP Loan re-opens next Monday January 11.

$600 stimulus checks are officially on the way.

With President's backing, House voted to increase stimulus checks to $2,000.
The measure is heading to Senate for approval.

New COVID-19 relief bill passed with PPP2 for:
- First-time borrowers with fewer than 500 employees
- Second-time borrowers with 300 employees or fewer with at least 25% revenue decline

New COVID-19 bill:
- Simplified forgiveness application for PPP loans of $150,000 or less
- Business expenses paid with forgiven PPP loans are now deductible