Stimulus and Taxes
Greetings! This year is flying by and it is hard to believe we are already in April! With the coming of spring, we are also in the midst of tax season (yay!) and the beginning of the new Biden administration. As with most Presidents, Biden has signed into law some pretty serious legislation during the first months of his term. The links in this newsletter will help you understand the American Rescue Act and the points that may affect you.
- Read: Our first link is a slide show giving an overview of 12 key tax points to keep in mind when thinking about the impact the American Rescue Act may have on you and your family. Some key points to pay attention to; income amounts in 2019, 2020, and 2021, Child and Dependent tax credits, and ways to adjust AGI if you are on the cusp of being phased out of stimulus money. There are key planning issues here, so get in touch with us if you have any questions. Additionally, check out this article from Michael Kitces, for a deeper understanding of the act and its ramifications from the High Nerd of all-things-planning.
- Watch: Continuing with our tax focus, this video from Yahoo Finance, does an excellent job of breaking down the American Rescue Act’s effects. This video touches upon the Unemployment Benefits (expanded and partially tax-free), the Child Tax Credit (also expanded and now able to be prepaid), and the Dependent Care Credit which has been greatly expanded to help parents cover child care costs. The video also touches upon some great benefits for employers, so if you’ve got employees, you’ll want to watch until the end for sure.
- Listen: Our last link may be our favorite. It focuses on the nitty-gritty of how to make sure you get the largest stimulus check possible. It is also chock full of other resources including a stimulus check calculator, a Child Tax Credit calculator, and state-to-state tax guides for middle-class families and retirees. The beginning of the episode also focuses on various state plans for adjusting their taxes. If you only check out one of our links in this newsletter, then this is the one to click.
We hope you have enjoyed these links and as usual, please feel free to forward this to your friends and family. Feel free to reach out with any questions or comments. We love hearing from you! Lastly, if we are doing your taxes and you haven’t uploaded your documents yet, please do so :)! Have a great day!
Make it an amazing month!
The Bona Fide Family