Good News/ Bad News for 2021 Tax Returns

Good News for 2021 Tax Returns

Health Insurance: for 2021, if you don’t have health insurance, there is no penalty! Additionally, you only need to report this information if you have Form 1095A, which you received through the Marketplace.

The Child Tax Credit:

New for 2021 only: $3600 per child under 6, and $3000 per child ages 6 to 17. Additionally, this is a refundable credit. What is a refundable credit? It can general a refund if the taxes owed are less than the credit. In 2021, up to 50% of the credit was provided via advance payments from the IRS. Be sure to provide this information for your tax preparation!

Standard Deduction:

20212022
Single/MFS$12,500$12,950
MFJ$25,100$25,900
HH$18,800$19.400

Bad News for 2021 Taxes

  • Deductions no longer available:
  • Moving expenses: gone!
  • Entertainment expenses: gone!
  • Limited State and Tax Deductions ($10,000)
  • Unreimbursed employee expenses
  • Miscellaneous itemized deductions
  • Alimony deduction (yes we have that in Texas)
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