Single or Married Filing Seperately $12,400
Married Filing Joint or Qualifying Widow $24,800
Head of Household $18,650
Due to Covid , alot of clients received unemployment benefits both through state and federal government. This is considered as of this writing as taxable income.
Special Rules apply for Covid-19 distributions from an IRA , profit sharing, or other retirement plan.
Taxpayers who do not itemize deductions on Schedule A, can take a deduction of up to $300 per return for cash contributions made in 2020 to qualified charitable organizations.
The Recovery Rebate Credit is computed in the same manner as the economic impact payment (EIP) the taxpayer may have received in 2020. The RRC is a reconsilation between EIP payments that should have been received vs actual received.
ALL NECESSARY PRECAUTIONS ISSUED FROM VIRGINIA DEPARTMENT OF HEALTH BEING CLOSELY FOLLOWED. MUST WEAR MASK
2018 brought the biggest Tax Overhaul seen with the TCJA (Tax Cuts and Jobs Act)
1. As of 2018, the deduction for personal exemptions is suspended for tax years 2018 through 2025.
2. The 2018 standard deduction is as follows:
SINGLE OR MFS...…………$12,000
MFJ OR QW...……………….$24,000
3. Miscellaneous Itemized Deductions Subject to 2% AGI limitation are no longer deductible through 2025. This is BIG change for some as it does away with the Unreimbursed Employee expenses, which included business mileage for employees, tools & supplies and travel & meals.
4. The Child Tax Credit increased to $2000 per qualifying child under 17. The portion of the credit that exceeds regular tax liability is refunded but is capped at $1400.
5. The TCJA also brings a new nonrefundable credit of $500 for other dependents, who aren't qualifying children but qualifying dependents under the rules.
6. As of January 1, 2019 the penalty tax under the ACA is $0.