What: The
Why: Factors such as COVID, COVID-related tax legislation, and lack of adequate
The
The
The
The
The 2021 tax return will be complicated by a larger and fully refundable Child Tax Credit and the need to track and account for advance payments in 2021
Taxpayers will once again have to track Economic Impact Payments in the calculation of the Recovery Rebate Credit and distinguish payments in early 2021 from those in the third round later in the year
More taxpayers will likely be eligible for the enhanced Earned Income Tax Credit on 2021 tax returns
More middle-income taxpayers will be eligible for the enhanced and fully refundable Child and Dependent Care Credit on 2021 tax returns, although some higher income taxpayers may no longer be eligible
More taxpayers will be eligible for the enhanced Premium Tax Credit for health insurance obtained under the Affordable Care Act
Enhanced charitable contribution deductions will again be available on 2021 tax returns with some modifications for non-itemizers
The business meals deduction will increase from 50 percent to 100 percent for meals and beverages provided by a restaurant
Business tax returns will have to deal with modifications to the various COVID-related payroll tax credits and tax deferrals
COVID-related business tax breaks for Net Operating Loss carry backs and the business interest expense limitation expired at the end of 2020
Several individual and business regularly expiring provisions expired at the end of 2021
Wolters Kluwer Tax Briefing:
Who: Federal tax expert
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