Tax changes include unemployment benefits, dependent care deductions, child credits

CPA Ben Micham discusses changes to federal tax laws that will affect people as they file their 2021 tax returns in the coming weeks.
Posted 12/14/2021, 7:51:13 PM

OUT THE TOYS IN A DRIVE-THRU

SETUP AND AS WE GET INTO CLOSE

OUT

2021.

IT IS A GOOD TIME TO GET YOUR

FINANCES IN ORDER,

THE CHANGES AND TAX RULES AND

WHAT THEY MEAN TO YOU, BEN, A

LOT TO

GET THROUGH HERE, ONE CHANGE IS

HOW MUCH IS TAXABLE FOR

UNEMPLOYMENT BENEFITS, RIGHT?

>> RIGHT, LAST YEAR THE IRS

ALLOWED $10,000 OF YOUR

UNEMPLOYMENT

TO NOT BE TAXABLE IF YOU ARE

MARRIED AND JOINT $150,000 AND

THIS

YEAR THEY DIDN'T REINSTATE THAT.

IF IF YOU GOT UNEMPLOYMENT IT

WILL BE TAXABLE THIS YEAR, SO

YOU

WANT TO ACCOUNT FOR THAT.

>> ALSO DIFFERENT THIS YEAR,

DEPENDENT CARE CREDIT INCREASED.

WHAT SHOULD FAMILIES KEEP IN

MIND.

>> I ALWAYS FOR REMIND THEM.

DID YOU HAVE DEPENDENT CARE AND

THE

CAMPS, AND THE DAY CAMPS, AND

SPORTING EVENTS, YOU WANT TO BE

AWARE

OF THAT, THE CREDIT HAS GONE UP.

SO MOST PEOPLE GOT A $600 CREDIT

FOR TWO PEOPLE AND NOW IT IS UP

TO

$4,000 PER PERSON.

DEPENDING ON WHERE YOU INCOME IS

AT.

SO YOU HAVE TO PAY

ATTENTION AND I WANT TO MAKE

SURE PEOPLE ARE AWARE.

>> OKAY, ALSO KEEP THESE ON THE

RADAR FOR THE TAX RETURNS,

TRACKING STIMULUS PAYMENTS AND

THE CHILD TAX CREDITS WILL

PEOPLE

GET SOMETHING FROM THE IRS.

>> YOU SHOULD GET A LETTER FROM

EACH.

AND YOU JUST

FWEENT AWARE THAT YOU NEED TO

KNOW HOW MUCH YOU GOT FOR BOETHD

OF

THOSE SO IT CAN BE RECONCILED

AND THEN YOU DON'T SLOW UP THE

PROCESSING.

>>> FOR SMALL BUSINESS OWNERS

THE STATE MADE A CHANGE

REGARDING

LOANS THAT HELPED BUSINESSES PAY

THEIR WORKERS DURING THE

PANDEMIC

AND WE HAVE 30 SECONDS HERE BUT

THE CONFUSION ABOUT THE

TAXABILITY

OF THE LOANS, WHERE DO THEY

STAND?

>> SO THE EXPENSES YOU PAID FOR

THE LOAN YOU GOT WAS NON-TAXABLE

AND THAT TOOK A WHILE TO SAY IT

WAS NON-TAXABLE AND NORTH

CAROLINA

NEVER CONFORMED TO THE FEDERAL

LAW AND NOW THEY HAVE CONFORMED

AND

PRETTY MUCH EVERYONE WHO GOT THE

LOANS AND TAXED IN NORTH

CAROLINA

NOW NEED TO AMEND THEIR RETURNS

TO GET THE MONEY BACK THAT YOU

PAID

ON THOSE LOAN PROCEEDS.

SO --

>> THANK YOU AS ALWAYS FOR YOUR

EXPERTISE.

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