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Who Is My Dependent?

Posted by Felix Assivo on
0
Kids
Who Is My Dependent?

Who to claim as a dependent on a tax return can range from being simple to very complicated. The IRS has tests that must be met for you to claim an individual as a dependent. For married parents claiming their children, it can be relatively simple. However, other situations, such as divorced parents, single parents, living with a grandparent, and other unusual circumstances can cloud who is eligible to claim a child. You must have the correct filing status. What do I do if the electronic filing is rejected because my dependent was claimed on another tax return? What tax credits can I claim for my dependents? Can I claim my child going to college? This episode will help to clear up the waters and answer these questions.

Planning for 2021 Now as the IRS Has Released Inflation Adjustments for 2021

Posted by presspass on
0
Business
Planning for 2021 Now as the IRS Has Released Inflation Adjustments for 2021

As we look forward for the coming 2021 tax season, we can start planning for 2021 with these adjustments from the IRS:

  • 2021 Standard deductions:
    • Single and Married Filing Separately $12,550
    • Head of Household $18,800
    • Married Filing Jointly $25,100
  • Maximum capital gains rates of zero:
    • Single and Married Filing Separately $40,400
    • Head of Household $54,100
    • Married Filing Jointly $80,800
  • Kiddie tax threshold is unchanged and remains at $1,100
  • Adoption Credit Expenses $14,440
  • Section 179 begins phaseout at $1,050,000 and fully phases out at $2,630,000
  • Retirement Plan Amount for 2021 (All are unchanged from 2020)
    • 401k contributions – $19,500, 50+ catchup at $6,500
    • Simple-IRA contributions – $13,500, 50+ catchup at $3,000
    • Individual IRA’s and Roth IRA’s – $6,000, 50+ catchup at $1,000

There are other adjustments for 2021, I would be happy to discuss during the 2021 planning and discovery process.  With these number now, we can set goals and make plans for success in 2021 and beyond.

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