With new and changing laws every year, it is increasingly easy for taxpayers to overlook deductions and credits that may reduce their tax liability. This year, we want to highlight the American Plan Rescue Act of 2021—which fleetingly increased specific tax credits and added a special rule for charity deductions. These programs are now ending.
1. Child Tax Credit
What is it?
The Child Tax Credit is a tax benefit for people with qualifying children.
What's new?
2. Child and Dependent Care Credit
What is it?
The Child and Dependent Care Credit is for those who paid expenses to care for a child or qualifying person so they could go to work, look for work, or attend school.
What's new?
3. Earned Income Credit
What is it?
The Earned Income Tax Credit helps low- to moderate-income workers and families reduce the taxes wed and potentially increase refunds.
What's new?
4. Premium Tax Credit
What is it?
The Premium Tax Credit helps individuals and families cover the premiums for health insurance purchased through the Health Insurance Marketplace.
What's new?
5. Clean Energy Vehicle Credit
What is it?
The Clean Energy Vehicle Credit is for those who purchased a new plug-in electric vehicle or fuel cell vehicle.
What's new?
6. Charitable Contribution Deductions
What is it?
This deduction is available to taxpayers who made cash or non-cash contributions to a qualifying organization.
What's new?
Questions?
Tax laws are increasingly complicated—but we're here to optimize your tax return. Give us a call at 985-727-9924 to get started today.
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