Upon Congress’s recent approval of a new stimulus bill, most of the attention has been centered on additional stimulus checks and new PPP loans to assist businesses. However, the typical American 1040 taxpayer who does not own a business will also receive some additional consideration.
If you are able to put a few of these features into play, the tax savings can add up to a nice booster for the COVID-exhausted and the Zoom-weary.
Thanks to the new bill, you can:
- Deduct charitable contributions even if you don’t itemize
- Deduct up to 100% of your adjusted gross income (AGI) as a charitable deduction
- Use up to a year to repay your 2020 employee Social Security taxes if you had them deferred by your employer
- Deduct medical expenses in 2021 using the now-extended 7.5 percent of AGI
- Carryover unused flexible savings account (FSA) funds to next year
- Use your 2019 income to qualify for the earned income tax credit and/or child tax credit if you’re a lower-income taxpayer
- Deduct out-of-pocket expenses for personal protective equipment (PPE) if you’re a teacher
- Take advantage of the lifetime learning credit in 2021 if you’re a higher-income taxpayer
Be sure to “super-spread” the word, and refer my services to anyone who may need assistance in navigating the nuances of the new Bill.
Connect with me or call 201.787.6542.