– (BUSINESS WIRE) – Wolters Kluwer Taxes & Accounting:
What: With the May 17th tax filing deadline behind us, there are some new tax questions and proposed tax law changes that should stay in focus, even for those who have requested an extension. The American Rescue Plan Act, passed earlier this year, contained changes that will affect 2021 tax returns, and if it goes into effect, the proposed American Jobs Plan and American Families Plan could both contain provisions that will affect 2021 tax returns become. In addition, the Internal Revenue Service (IRS) continues to issue guidance on new tax regulations. Find out more about some of the changes in this recently released update for Wolters Kluwer Tax & Accounting’s 2021 post-filing season.
Rationale: As is so often the case, some of the new changes affecting 2021 tax returns require immediate action to get the most out of new tax breaks. Even proposed and not yet implemented tax breaks could justify discussions between taxpayers and their tax advisors in order to prepare for possible effects and planning options.
Enacted provisions that affect the 2021 tax return
A third round of Economic Impact Payments of up to $ 1,400 per person which, if not paid earlier, will be considered a refundable credit on the 2021 tax return
An expanded child tax credit that is fully refundable and includes a monthly upfront payment for 2021 of up to $ 300 per child from July 15, 2021
Extended tax credit for earned income, care assistance and bonus tax credit for 2021
Safe Harbor for deducting Paycheck Protection Program expenses incurred in 2020 and 2021
100% business lunch deduction guidelines for 2021 and 2022 for meals provided by a restaurant
Additional information on paid sick leave and family leave credits for the periods from January 1 to March 31, 2021 and from April 1 to September 30, 2021
Additional information on the employee loyalty credit for the periods January 1 to June 30, 2021 and July 1 to December 31, 2021
Additional guidance on continued coverage of COBRA for the period April 1 to September 30, 2021
Proposed rules that, if in effect, could affect 2021 tax returns and future planning
Increase in individual tax rates for higher income taxpayers
Increase in capital gains tax rates for higher income taxpayers
Increase in corporate tax rates
Elimination of the step-up basis
Expansion of extended tax credits under the American Rescue Plan Act
Increase IRS funding to expand audits and improve customer service
Regulation of tax return preparers
New financial institution reporting on customer account inflows and outflows
A major package of international tax reforms
Wolters Kluwer Tax Briefing: Wolters Kluwer Tax & Accounting has released the Expert Briefing 2021 Post-Filing Season Update, which looks back on the tax season and provides additional insight into upcoming legislation and the latest tax developments affecting businesses and individual taxpayers.
Who: Tax Expert Mark Luscombe, JD, LL.M, CPA, Principal Federal Tax Analyst at Wolters Kluwer Tax & Accounting, can help discuss tax issues in preparation for passed tax changes and potential tax changes affecting tax returns in 2021 and beyond .
PLEASE NOTE: The contents of this warning have been prepared by Wolters Kluwer Tax & Accounting for general informational purposes only. The information is provided with the reservation that Wolters Kluwer Tax & Accounting does not provide any legal, accounting or other professional services.
Contact: To arrange an interview with Mark Luscombe or other federal and state tax experts from Wolters Kluwer Tax & Accounting on this or other tax-related topics, please contact Bart Lipinski.