It’s that time of year again and, although the April 15th deadline isn’t on the horizon just yet, it’s not too early to prepare! If you haven’t already, take some time this month to gauge your finances and tax situation to save yourself the stress in April.
As you already know, there are usually a few changes to the tax policy each year. Here are some highlights of these changes that you may want to be on the lookout for this tax season:
- No tax on stimulus checks
- Higher standard deductions, increasing to $150-$300 more than 2020
- Sizable reductions from the earned income tax credit, with maximums of up to $6,728
- Up to $2000 in credits from retirement accounts
- Up to $10,000 in credits from The Lifetime Learning tax credit
- Increase in gift and estate tax exclusions to $120,000 more than 2020
In addition to these, there’s cause for celebration for the retired folks among us! Retirement tax restrictions are easing up, with the added benefits of increased payback windows, no income tax on 401(k) loans paid back within 5 years, and a waiver of the 10% penalty on early IRA/401(k) withdrawals.
As always, I’m here for you! If you decide you need help with your taxes, feel free to give contact me at 480-355-8645. From there, I can connect you to a trusted tax professional within my network who can give you a hand with all your tax filing questions and needs. Prepare now to get ahead of the game and rest easy this spring!