It’s almost tax day – federaltax returns are due April 18this year.
Knowing how tax changes andincreased tax breaksmay affect your tax refund can be helpful as you start your return.
For heads of households, the standard deduction is now $18,800 (an increase of $150).
These increases are inflation adjustments.
Income tax brackets were raised
Income tax brackets were also raised to account for inflation.
you’re free to view all the changes on theIRS website.
But now, a new stipulation prevents forgiven post-secondary education loans from being taxed through 2025.
This law has not yet been extended beyond that, but it might be.
For your 2021 tax return, this benefit has expanded to up to $300per person.
you’re able to search for eligible organizations with theTax Exempt Organization Searchtool on IRS.gov.
These required withdrawals are called required minimum distributions, or RMDs, and they’re subject to income tax.
The American Rescue Plan expanded and increased this credit for the 2021 tax year.
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8.
This provision was made permanent at the end of 2020.
