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.
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.
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.
Previously, only those between ages 25 and 65 could receive the credit on their tax return. A recent law change has expanded that range to those ages 19 (except for certain full-time students) to infinity. If you want us to calculate if you now qualify for this credit under these new rules then reach out to us.