STIMULUS PAYMENTS RECEIVED MUST BE ACCOUNTED FOR ON YOUR TAX RETURN FILING, EVEN THOUGH THEY WILL NOT BE CONSIDERED TAXABLE INCOME!
Child Tax Credit
Many taxpayers may receive a tax credit of up to $2,000 for each child under 17 years old that they claim as dependents on their tax returns. Other dependents equal $500.00 tax credit.
State and Local Tax Deductions
Taxpayers who itemize their taxes can deduct PROPERTY AND REAL ESTATE TAXES, and either STATE and local income or sales taxes.
These now will be capped at $10,000.
Taxpayers who itemize their taxes can deduct interest payments on mortgage debt of up to $750,000.
Also, homeowners may not claim a deduction for existing and new interest on Home Equity loans, beginning Jan. 1, 2018.
Medical Expense Deduction
Taxpayers can deduct medical expenses that exceed 7.5 percent of AGI.
Capital Gains Tax Rate
Effective on January 1, 2019 Alimony is no longer tax deductible at all, unless you divorced prior to this date.
The top rate of 40 percent would apply to estates valued at more than $11.7 million ($23.4 million for couples).
The top rate is 21 percent.
Pass-Through Business Taxes
Businesses organized as sole proprietorships, LLCs and partnerships don’t pay corporate tax rates. Instead, the owners pay individual income taxes on their share of business income – they’re called pass-through business taxes. Those tax rates are the same as the individual income tax rates.
Business owners can take a 20 percent deduction on their pass-through business income, with limits for those earning above $163,300 (single) and $326,600 (married, filing jointly).
Retirement Plan Distributions
No 10% penalty for up to $100,000 of COVID-19 related withdrawals, but regular ordinary Income Tax will still be due on it.
Also, if you can pay it back in full, within 3 years, then there will be no Tax due at all.
More donations to charity are now Tax deductible than before.
Solar Tax Credits
Installing Solar on your house, still provides good Tax Credit, but not as much as in the past. It is still good to do this because the credit will be gone completely after 2021.