Tax season is upon us. Time to gather all your paperwork and
receipts from 2021.
“Life events can affect your taxes. A number of them include, a general change in marital status, educational expenses, selling or buying a house, retirement, an increase, receiving an inheritance and having a death,” says Ellsworth Buck, Vice President of Insurance, Florida's top independent home insurance company.
“Even without major tax law changes, each year brings a host of smaller amendments to existing provisions,” reports financial website, The Motley Fool.
Here is some of what is new for your 2021 tax filing.
- The IRS is raising the conventional deduction to $12,200 for individuals and to $24,400 for married joint filers. The additional standard deduction for older taxpayers and those who are blind continues to be available.
- The IRS has raised the employee contribution limit for 401k, 403b and most 457 intends to $19,500. This lowers your taxable income.
- Some families is going to be eligible for a deduction of $2,000 to $4,000 for school tuition.
- Victims of hurricanes, major floods or wildfire, those known as a “presidentially declared disaster area,” may benefit from tax breaks.
- If your medical expenses were more than 7.5 percent of the adjusted gross income, you are able to deduct those expenses.
“There are a few long-time deductions that will not be included on 2021 tax forms,” says Ellsworth Buck, Vice President of Insurance, Florida's largest independent homeowners insurance company.
- For recently divorced Americans, alimony payments are no longer tax deductible by the payer. They're also not considered or included as taxable income through the parent receiving support.
- Those job seeking, can no longer deduct expenses related to finding a job.
- Employees are no longer able to deduct un-reimbursed expenses they incur from work.
- No more moving expense deductions, except for active military for a move relating to military orders to some permanent location.
