Subsidized Health Insurance?

If you are getting subsidized health insurance through the Federal health insurance exchange then you likely can receive more subsidy due to a recent law change.  In the past, you could receive NO subsidy if your income exceeded 400% of the Federal Poverty Level.  Now there is no bright-line phaseout and you will always receive a subsidy to keep you from paying more than 8.5% of your income towards health insurance.  If you need any clarification on how this impacts your tax return then please call us.

Student Loan Cancellations

Due to a recent law change, student loan cancellations are now NOT TAXABLE.  While this law change impacts few taxpayers, the news is favorable for those who are on some form of an income-based-repayment-program who will have their student loan balances forgiven before 2025 when the law expires.

2021 Child Tax Credit

If the IRS thinks that you qualify for the child tax credit in 2021 ($3.6K per children age
5 and younger and $3K for most other children), then the IRS has been sending you prepayments of that credit. While we don’t believe that it ever makes sense to opt-out of
receiving the pre-payments, you probably want to make sure there is not a surprise at
tax-time – talk to us if you need us to take a look.