November 26, 2020

Taxes 2021

Taxes 2021 so the tax reform that was you know that's in effect now was the biggest change of the tax code in the last 30 years and it impacts every single tax filer first and, foremost there was a change to the brackets and a lowering of the rates in general across.

The board so everybody is getting slightly lower rates now there's a few other things there was the elimination of the personal exemptions that you'd be able to.

Claim for yourself and your kids and then that was offset, by an increase in the standard deduction so those are some of the really big moving parts and pieces then there was this major expansion of the child.

Tax credit, so up to $2,000 per child with all of that what we're seeing is that more people will be able to, just claim the standard deduction and people with kids are now finding that their children are worth more on.

Their taxes from my perspective it's always worth it to be somebody taxes but that said whenever you're going through a significant life change that's the time when you want to consider.

Getting help with your taxes so if it's the first time you're filing maybe your parents have always filed, their taxes before well you want to work with.

A professional and get that objective advice and get educated on what are the things that you need to know then whenever you have a big change like buying a house getting married having a baby those, kinds of things really have a lot of tax implications and you don't want to miss out so that's a great time to, get help for lowering your taxable income you still have one more thing that. You can do before April 15th and that's contribute to an IRA and that's a really cool thing because up to 5500 if you're under, 50 up to 6500 over 50 and that's taking that money off the top so, it's lowering your taxable income and you're saving for retirement which is a really good thing to do so some of the. Most common tax deductions are, dependent on where you are in your life so if you have kids you need to be looking at all of the opportunities to claim childcare expense child.

Tax credit if your child is older say there's older than 17 there's now the new other dependent credit so there's a lot of, child and family credits that are available if you're in school there's the American Opportunity Credit for the first four years of college that's up to. Twenty five hundred dollars to help offset your tuition. Expenses and now with tax reform there's this new twenty percent business income deduction that's available for self-employed freelance or small business owners so there's a lot. Of different things that you. Need to get smart on depending on what your situation is because you don't want to miss out so it's the number one thing that people should not do when it comes to their taxes is not, file we hear so many times oh you know I didn't make enough money or, I think I'm gonna oh I'm afraid so I'm not gonna file my taxes, and the most important thing is that the penalty for failing to file your taxes is so much higher than failing. To pay your taxes that even if you can't pay go ahead and file your tax return you can always make up a payment plan later and it will, help keep those penalties low so if you are a full-time worker so. You're getting your payroll taxes withheld from your main job from, your main employer and you're doing some freelance on the side what you may not know is that you're also, going to have to pay taxes on that freelance income and so either you want to bump up what you're getting withheld from your, regular paycheck so that you don't have to balance out your freelance or start making some estimated projections and payments on your freelance income that money that you're getting on the side isn't having taxes, withheld so you got a plan for that, you .

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