As you all know these last two tax years have been challenging. Mostly because of the effect of the COVID19 Pandemic. This is why you have not seen an updated Blog Post from our Firm. I wanted to put something out there to update our clients on some things to keep in mind as the year comes closer to ending.
Please keep an accurate record of any and all stimulus payments you received after January 2021. Any payments received after this date relate to your 2021 tax return and we will need to know what amounts you received in these payments to file your 2021 tax return and avoid a subsequent notice from the dreaded Internal Revenue Service. We are currently dealing with many notices on the 2020 tax returns related to the stimulus payments received for the 2020 tax year.
Keep in mind that Business Meals in a sit down restaurant are fully deductible for 2021. Additionally, there was an increase in the Child Tax Credit for 2021 and it is being paid out monthly since July 2021 through the end of the year. Keep an accurate total of how much you have received related to this credit.
Charitable contributions totaling $300 for an individual return and $600 for a joint return are deductible even if you don’t Itemize your deductions.
Please let us know if you have other tax return questions to address prior to year end.