Tax Breaks Continued for 2021
Alakov469
tax breaks 2021

As we talked earlier this month about the new Unemployment and Tax Break changes for the year 2021, we continue looking into more tax breaks for this year.

The American Rescue Plan also extended the initial CARES act unemployment benefits. The new plan extended the number of benefit weeks for individuals aged 50-76, as they may not be able to return to work safely. The plan will maintain the $300 per week the previous act provided. The biggest difference is that the Rescue Plan extends the benefits weeks from 24 weeks of aid, to 54 weeks of aid. 

Another change from the new plan is the expanded child tax credit. It will now be paid out monthly, which is going to be a major IRS challenge. The biggest challenge is that the IRS will need to account for proof of dependents each month, proof of projected income, and filing status. The current administration plans to have this all worked out by July; however, many are in disbelief that this new tax credit and monthly payout will work as it took the IRS two years to work out the payment system with the Affordable Care Act. 

Policymakers plan on revisiting and evaluating these changes, to see if the longevity of these benefits and tax breaks are cost-effective. 

Have any questions, give us a call here at Metro Tax & Financial Services.
We are here to help you get through the stress of taxes!

We offer a free 30-minute consultation so call us and let’s get your appointment set up (928) 680-1444

For more Tax Facts make sure you are following us on Facebook

Click HERE for more Tax Facts and Financial News

Suggested Articles

Pre-Retirement Planning Guide – Finding Purpose In Life

Step 7: Find Your Raison d’EtreWhat do you consider to be your purpose in this world? Few people think about their life that way. In Japan, they call it your ikigai. In France, they refer to your raison d’etre. For Americans, that roughly translates to...

Tax Fact: Do you need an Accountant?

As a business owner, an accountant can help you handle growth transitions, such as hiring employees or taking on more office space. They'll look after the detail (payroll, employee tax management, property tax, utility payments, and so on), leaving you free to look at...

Startup Businesses: Expenses

Expenses Photo by Domenico Loia on Unsplash Many startup businesses can deduct expenses that were necessary for the business coming to life. Last time we talked about all the tax needs a startup business will need, but let's talk about business expenses. Things like a...

Tax Fact: Seven tax brackets in the US

In the U.S., taxpayers pay more if they make more. In fact, there are currently seven different tax brackets in the U.S., and the higher your income, the higher your bracket. This type of system is referred to as a progressive tax system. It's an alternative to a flat...

Cryptocurrency

Interested in Cryptocurrency? Heard of it but don’t know where to begin or how it might affect you? Cryptocurrency or crypto is probably something everyone is vaguely familiar with. At least most media outlets have discussed the terms along with the big businesses...

Common Business Accounting Calculations

No matter the type of business or industry, being able to analyze and deduce patterns is essential to discovering a business’ financial health. Here are four commonly used calculations to help internal and external stakeholders determine an organization's...

Taxpayers Beware: Scammers

As we approach the holiday season, scammers increase their attempts to steal, scam, and take your hard-earned money. More people are stressed out, easier to fool, and more likely to donate to charities. However, many new fraudulent charities pop up, hoping to convince...

Tax Fact: S-Corp or LLC?

Question... Should I have an S-Corp or should I have a Single Member LLC? Limited liability companies(LLC) and S corporations share several benefits for sole proprietors, including protecting personal assets from business creditors. Choosing between a single-member...

Copyright and AI-Generated Images and Videos: What Businesses Need to

Know to Stay LegalArtificial intelligence (AI) tools are reshaping content creation. It is now easier for businesses to produce images and videos for use on websites, social media, and other digital outlets. All this is possible without the traditional hurdles of...

Unemployment Changes for 2021

For many this tax season, the unemployment benefits seemed to challenge taxes and income brackets for many Americans. Policymakers have allowed filers to use 2019 EIC (earned income credit) since 2020 provided fewer opportunities for many; however, the American Rescue...