Tax Law Changes Impacting 2021 Tax Returns

Mark A. Luscombe, J.D., LL.M., CPA - Principal Tax Analyst for Wolters Kluwer Tax & Accounting, takes a look at recent tax legislation changes that are affecting this year’s tax returns, including:

• Child Tax Credit and Advance Payments
• Economic Impact Payments and Recovery Rebate Credit
• Child and Dependent Care Credit
• Earned Income Tax Credit
• Premium Tax Credit
• Charitable Contribution Deductions
• Business Meals Deduction
• Cryptocurrency
• State and Local Tax Deduction Cap

IRS Commissioner Chuck Rettig noted that taxpayers need to take special care this year due to several critical tax law changes that took place in 2021 and ongoing challenges related to the pandemic. Here is a list of resources provided by the Internal Revenue Service to assist both taxpayers and professional tax preparers as they look to file accurate returns to avoid processing errors and tax refund delays.

• Tax Time Guide: Important considerations before filing a 2021 tax return
• FAQs for 2021 Child Tax Credit and Advance Child Tax Credit Payments
• Top 5 things to remember when filing income tax returns in 2022
• FAQs to help taxpayers when preparing their 2021 returns
• IRS urges extra caution for taxpayers to file accurate tax returns

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