Hvis du ikke allerede er begyndt, er det tid til at begynde at tænke på din selvangivelse for 2021. Jo mere skatteplanlægning du laver, jo flere penge kan du muligvis spare. Korrekt skatteplanlægning kræver dog en forståelse af, hvad der er nyt og ændret fra det foregående år - og der er masser af skattelovændringer og opdateringer for skatteåret 2021 som smarte skatteydere skal kende til.
Covid-relief-lovene, der blev underskrevet i loven i december og marts sidste år, indeholder en række bestemmelser, der kan påvirke din selvangivelse for 2021. Andre 2021-justeringer er resultatet af nye regler eller årlige inflationsjusteringer. Men uanset hvordan, hvornår eller hvorfor ændringerne blev foretaget, kan de skade eller hjælpe din bundlinje - så du skal være klar til dem. For at hjælpe dig har vi samlet en liste over de vigtigste skattelovændringer og -justeringer for 2021 (nogle relaterede elementer er grupperet sammen). Brug disse oplysninger nu, så du kan holde på flere af dine hårdt tjente kontanter i april, når det er tid til at indsende din 2021-angivelse.
Der er store ændringer for 2021 børneskattefradraget - men i det mindste for nu er de kun midlertidige. For 2020 selvangivelser var kreditten værd $2.000 pr. barn på 16 år eller yngre. Det begyndte også at forsvinde, efterhånden som indkomsten steg over $400.000 på fælles afkast og over $200.000 på enkelt- og husstandsoverhoveder. For nogle skatteydere med lavere indkomst var kreditten delvist "refunderbar" (op til $1.400 pr. kvalificeret barn), hvis de havde en indkomst på mindst $2.500. (Det betyder, at IRS har udstedt dig en tilbagebetalingscheck på det refunderbare beløb, hvis kreditten var mere værd end din indkomstskattepligt.)
Den amerikanske redningsplan, som blev vedtaget i marts 2021, giver en dramatisk etårig udvidelse af børneskattefradraget for skatteåret 2021. En af de største ændringer er størrelsen af kreditten. For 2021 springer det fra $2.000 til $3.000 for de fleste børn - men til $3.600 for børn på 5 år og derunder. Det ekstra beløb ($1.000 eller $1.600) reduceres dog – potentielt til nul – for familier med højere indkomster. For personer, der indgiver deres selvangivelse som enlig, begynder det ekstra beløb at udfase, hvis deres justerede bruttoindkomst er over $75.000. Udfasningen begynder ved $112.500 for husstandsoverhoveder og $150.000 for ægtepar, der indgiver en fælles tilbagevenden. Kreditbeløbet er yderligere reduceret under de allerede eksisterende udfasningsregler på $200.000/$400.000.
En anden vigtig ændring er, at 2021-kreditten kan refunderes fuldt ud. Den krævede indkomst på 2.500 USD falder også for 2021. Børn, der er 17 år, kvalificerer sig også til 2021-kreditten.
Sidst, men ikke mindst, bliver halvdelen af kreditbeløbet for 2021 betalt på forhånd via månedlige betalinger, der startede den 15. juli og slutter den 15. december. Du vil gøre krav på den anden halvdel af kreditten på din selvangivelse for 2021. Du bliver også nødt til at afstemme de månedlige betalinger, som du modtager fra IRS i 2021, med den børneskattefradrag, som du faktisk er berettiget til at kræve, når du indsender din 2021-angivelse. Hvis kreditbeløbet overstiger de samlede månedlige betalinger, kan du kræve den overskydende kredit på din returnering. Men hvis kreditbeløbet er mindre end betalingerne, skal du muligvis betale det overskydende beløb tilbage. Du kan også fravælge de månedlige betalinger for børneskattefradrag, hvis du hellere bare vil kræve den fulde kredit på din selvangivelse (f.eks. for at få en større refusion), eller du ikke er kvalificeret til 2021-kreditten (f.eks. en tidligere ægtefælle vil kræve dette års kredit for dit barn). (Brug vores 2021 Børneskattekreditberegner for at se, hvor meget din kredit vil være for 2021 – inklusive hvor meget dine månedlige betalinger vil være . )
Selvom disse forbedringer kun gælder for skatteåret 2021, ønsker præsident Biden at forlænge de fleste af dem til 2025 og gøre kreditten fuldt refunderbar på permanent basis. Om den indsats i sidste ende lykkes, skal dog vise sig.
For mere information om 2021-kreditten, se Child Tax Credit 2021:Who Gets $3.600? Får jeg månedlige betalinger? Og andre ofte stillede spørgsmål.
Den amerikanske redningsplan medførte også betydelige forbedringer af kreditten for børne- og omsorgssygeplejerske. Men igen, ændringerne gælder kun for skatteåret 2021 (selvom præsident Biden ønsker at gøre forbedringerne permanente).
Til sammenligning dækkede 2020-kreditten børne- og omsorgsudgifter for enten (1) et forsørget barn under 13 år, da plejen blev ydet, eller (2) en kvalificeret handicappet forsørger eller ægtefælle i enhver alder, der boede hos dig. Den ikke-refunderbare kredit var 20 % til 35 % værd af op til 3.000 USD i støtteberettigede udgifter for et barn/handicappet person eller 6.000 USD for to eller flere. Procentdelen faldt, da indkomsten oversteg $15.000.
For 2021 refunderes børne- og omsorgskreditten fuldt ud. Den maksimale kreditprocent hopper også til 35% til 50%. Flere af dine plejeudgifter er også tilgængelige for kreditten. For 2021 er kreditten tilladt for op til $8.000 i udgifter for ét barn/handicappet person og $16.000 for mere end én. Når den maksimale kreditprocent på 50 % anvendes, sætter det topkreditten for skatteåret 2021 til 4.000 USD, hvis du kun har ét barn/handicappet i din familie, og 8.000 USD, hvis du har flere.
Derudover vil den fulde børne- og omsorgskredit være tilladt for familier, der tjener mindre end $125.000 om året (i stedet for $15.000 om året). Herefter begynder kreditten at udfase. Alle familier, der tjener mellem $125.000 og $438.000, vil dog modtage mindst en delvis kredit.
Se Child Care Credit Expanded for 2021 for mere information.
Selvom skattesatserne ikke ændrede sig, er indkomstskatteklassen for 2021 lidt bredere end for 2020. Forskellen skyldes inflation i 12-månedersperioden fra september 2019 til august 2020, som bruges til at beregne justeringerne.
Skattesats
Skattepligtig indkomst (enkelt)
Skattepligtig indkomst (gift indgiver i fællesskab)
Skattepligtig indkomst (husstandsforstander)
10 %
Op til $9.950
Op til $19.900
Op til $14.200
12 %
$9.951 til $40.525
$19.901 til $81.050
$14.201 til $54.200
22 %
$40.526 til $86.375
$81.051 til $172.750
$54.201 til $86.350
24 %
$86.376 til $164.925
$172.751 til $329.850
$86.351 til $164.900
32 %
$164.926 til $209.425
$329.851 til $418.850
$164.901 til $209.400
35 %
$209.426 til $523.600
$418.851 til $628.300
$209.401 til $523.600
37 %
Over $523.600
Over $628.300
Over $523.600
Bemærk, at præsident Biden ønsker at øge topskattesatsen til 39,6% fra og med 2022. Denne sats vil gælde for skattepligtig indkomst over $452.700 for enlige skatteydere, $481.000 for husstandsoverhoveder og $509.300 for ægtepar, der indgiver et fælles afkast. Efter 2022 ville tærsklerne blive justeret for inflation som normalt.
Amerikanerne var begejstrede for at erfare, at den amerikanske redningsplanlov godkendte en tredje runde af stimulustjek. Disse checks var på $1.400, plus yderligere $1.400 for hver forsørger i din familie. Nogle mennesker modtog dog ikke så meget (eller noget), fordi betalingerne blev udfaset for fælles ansøgere med justerede bruttoindkomster over $150.000, husstandsoverhoveder med en justeret bruttoindkomst (AGI) over $112.500, og enlige filer. med en AGI over $75.000. Faktisk blev stimuluschecks i tredje runde reduceret til nul, hvis din AGI var over $160.000 (joint fils), $120.000 (overhoved for husstanden) eller $80.000 (single). (Brug vores Tredje stimuluskontrolberegner for at se dig, hvor mange penge du skulle have fået .)
Desværre modtog nogle mennesker, der var berettiget til en stimuluscheck i tredje runde, ikke en betaling eller fik mindre, end hvad de burde have modtaget. For disse mennesker kan lettelse være tilgængelig i form af en 2021 skattefradrag kendt som inddrivelsesrabatkredit. Teknisk set var din tredje stimuluscheck en forudbetaling af kreditten. Så når du indsender dit 2021-afkast, bliver du nødt til at afstemme den tredje stimuluscheck, du modtog (hvis nogen) med den inddrivelsesrabatkredit, som du er berettiget til at kræve. For de fleste mennesker vil din tredje betaling af stimuluscheck svare til den tilladte skattefradrag. I så fald vil din kredit blive reduceret til nul. Men hvis din tredje stimuluscheck var mindre end dit kreditbeløb, vil den skat, du skylder, blive reduceret med forskellen (og du kan endda modtage en refusion). Og hvis din stimuluscheck i tredje runde var mere end dit kreditbeløb, behøver du ikke tilbagebetale forskellen til IRS. (Bemærk også, at stimuluscheckbetalinger ikke er skattepligtig!)
For flere oplysninger om kreditten, se Hvad er en inddrivelsesrabatkredit?
Påkrævede minimumsfordelinger (RMD'er) er tilbage i 2021. Seniorer fik lov til at springe deres RMD'er over i 2020 uden at skulle betale en bøde. Men RMD-suspensionen gjaldt kun i et år. Så enhver, der er mindst 72 år gammel ved udgangen af året, skal tage en RMD for 2021.
Mange vigtige dollargrænser for pensionsordninger og IRA'er forbliver de samme i 2021. For eksempel forbliver de maksimale bidragsgrænser for 401(k), 403(b) og 457-ordninger på $19.500, mens personer født før 1972 igen kan lægge $6.500 ind. mere som et "indhentningsbidrag". 2021-loftet for bidrag til SIMPLE IRA'er forbliver også det samme på $13.500, plus en ekstra $3.000 for personer på 50 år og opefter.
Bidragsgrænsen for 2021 for traditionelle IRA'er og Roth IRA'er forbliver også stabil på $6.000 plus $1.000 som et ekstra indhentningsbidrag for personer på 50 år og opefter. Indkomstlofterne for Roth IRA-bidrag steg dog. Bidragene udfases i 2021 ved justerede bruttoindkomster (AGI'er) på $198.000 til $208.000 for par og $125.000 til $140.000 for singler (op fra $196.000 til $206.000 og $124.000 til $0,20 for henholdsvis $124.09,2 og $0).
Fradragsudfasning for traditionelle IRA'er starter også på højere niveauer i 2021, fra AGI'er på $105.000 til $125.000 for par og $66.000 til $76.000 for enlige filer (op fra $104.000 til $124.000 og $65.000 til $65.000 for $65.000 for $). Hvis kun den ene ægtefælle er omfattet af en plan, starter udfasningszonen for fradrag af et bidrag for den udækkede ægtefælle ved $198.000 af AGI og slutter ved $208.000 (de var $196.000 og $206.000 i 2020).
Flere arbejdere uden kvalificerede børn vil være i stand til at gøre krav på indkomstskattefradraget (EITC) på deres selvangivelse for 2021, herunder både yngre og ældre amerikanere. Beløbene for "barnløse EITC" vil også være højere. Derudover er der andre ændringer, der også vil hjælpe på bundlinjen for amerikanere med lavere indkomst.
For 2020 selvangivelser var den maksimale EITC $538 til $6.660, afhængigt af din indkomst og hvor mange børn du har. Der er dog indtægtsgrænser for kreditten. For eksempel, hvis du ikke har nogen børn, skulle både din 2020-indkomst og AGI være mindre end $15.820 for singler og $21.710 for fælles filer. Hvis du har tre eller flere børn og er gift, kan din 2020-indkomst og AGI dog være så høj som $56.844. Hvis du ikke har et kvalificeret barn, skulle du være mellem 25 og 64 år ved udgangen af skatteåret for at gøre krav på EITC.
Den amerikanske redningsplan udvidede 2021 EITC for barnløse arbejdere på nogle få måder. For det første sænker det generelt minimumsalderen fra 25 til 19 (undtagen for visse fuldtidsstuderende). Det eliminerer også den maksimale aldersgrænse (65), så ældre mennesker uden kvalificerede børn kan også gøre krav på 2021-kreditten. Den maksimale kredit, der er tilgængelig for barnløse arbejdere, øges også fra $543 til $1.502 for skatteåret 2021. Udvidede berettigelsesregler for tidligere plejeunge og hjemløse unge gælder også.
Som med EITC 2020 kan du også bruge din 2019-indkomst i stedet for din 2021-indkomst, hvis det vil øge dit kreditbeløb.
Forbedringerne beskrevet ovenfor er kun for skatteåret 2021. Der er dog også et par permanente EITC-ændringer, der træder i kraft i 2021. For eksempel kan arbejdere, der ellers ikke ville være i stand til at kræve kreditten, fordi deres børn ikke kan opfylde identifikationskravene, nu gøre krav på den barnløse EITC. Visse gifte, men adskilte par kan nu også gøre krav på EITC på separate selvangivelser. Grænsen for en arbejders investeringsindkomst øges også fra $3.650 (for 2020) til $10.000 (justeret for inflation efter 2021).
Bemærk også, at præsident Biden ønsker at gøre stigningen i EITC-parametrene for arbejdere uden børn og udvidelsen af aldersberettigelse permanent. Igen gælder de kun for skatteåret 2021 lige nu.
Skattesatserne på langsigtede kapitalgevinster (dvs. gevinster ved salg af kapitalaktiver, der besiddes i mindst et år) og kvalificeret udbytte ændrede sig ikke for 2021. Indkomstgrænserne for at kvalificere sig til de forskellige satser blev dog justeret for inflation.
I 2021 gælder satsen på 0 % for individuelle skatteydere med skattepligtig indkomst på op til $40.400 på enkeltafkast ($40.000 for 2020), $54.100 for husstandsoverhoveder ($53.600 for 2020) og $80.800 for 0,00008 for 0,0008 for fælles afkast.
Satsen på 20 % for 2021 starter ved $445.851 for singler ($441.451 for 2020), $473.751 for husstandsoverhoveder ($469.051 for 2020) og $501.601 for par, der ansøger i fællesskab ($496.020 for).
Satsen på 15 % er for indgivere med skattepligtige indkomster mellem 0 % og 20 % pausepunkter.
Tillægsskatten på 3,8 % på nettoinvesteringsindkomst forbliver den samme i 2021. Den træder i kraft for enlige med modificeret AGI på over 200.000 USD og for fællesregistrerede med modificeret AGI over 250.000 USD.
Bemærk, at præsident Biden ønsker, at langsigtede kapitalgevinster for alle med en AGI på mere end 1 million USD skal beskattes med de almindelige indkomstskattesatser i det omfang personens indkomst overstiger 1 million USD (500.000 USD for en gift person, der indgiver en separat selvangivelse) .
For mere om de langsigtede kapitalgevinstskattesatser, se Hvad er kapitalgevinstskattesatserne for 2021 vs. 2020?
Standardfradragsbeløbene blev forhøjet for 2021 for at tage højde for inflationen. Ægtepar får $25.100 ($24.800 for 2020), plus $1.350 for hver ægtefælle på 65 år eller ældre ($1.300 for 2020). Singler kan kræve et standardfradrag på $12.550 ($12.400 for 2020) - $14.250, hvis de er mindst 65 år gamle ($14.050 for 2020). Husstandsoverhoveder får $18.800 for deres standardfradrag ($18.650 for 2020), plus yderligere $1.700, når de når 65 år. Blinde kan betale ekstra $1.350 til deres standardfradrag ($1.700, hvis de er ugifte og ikke en efterlevende ægtefælle).
The American Rescue Plan Act made up to $10,200 of unemployment compensation ($20,400 for married couples filing jointly) exempt from federal income tax for households with an adjusted gross income less than $150,000 (the IRS sent refunds to people who filed their return before the exemption was enacted).
Unfortunately, the exemption only applied to unemployment compensation received in 2020. So, for 2021, Uncle Sam will once again fully tax unemployment compensation as if it were wages.
For the 2020 tax year, a new "above-the-line" deduction was allowed for up to $300 of charitable cash contributions. Only people who claimed the standard deduction on their tax return (rather than claiming itemized deductions on Schedule A) could take this deduction.
The write-off was originally scheduled to expire after 2020, but it was later extended to 2021 – with one important enhancement. For 2020, one deduction was allowed per return, meaning married couples who filed jointly could only deduct $300, not $600. However, for 2021, one deduction is allowed per person, which means married couples can deduct up to $600 on a joint 2021 tax return.
The 2020 suspension of the 60%-of-AGI limit on deductions for cash donations by people who itemize was also extended through the 2021 tax year.
Normally, if a student loan is canceled, forgiven, or otherwise discharged for less than the amount you owe, the amount of canceled debt is considered taxable income. However, starting in 2021, this rule is suspended for most canceled student loan debt that was incurred for a post-secondary education. The change is only temporary, though. In 2026, forgiven student loan debt will once again be taxed.
The rule allowing workers to exclude up to $5,250 of college loans paid by their employer in 2020 from taxable wages was also extended through 2025. The $5,250 cap applies to both student loan repayment benefits and other educational assistance offered by an employer.
For 2021, the adoption credit can be taken on up to $14,440 of qualified expenses ($14,300 for 2020). The full credit is available for a special-needs adoption, even if it costs less. The credit begins to phase out for filers with modified AGIs over $214,520 and disappears at $254,520 ($214,520 and $254,520, respectively, for 2020).
The exclusion for company-paid adoption aid was also increased from $14,300 to $14,440 for 2021.
The lifetime estate and gift tax exemption for 2021 jumped from $11.58 million to $11.7 million — $23.4 million for couples if portability is elected by timely filing IRS Form 706 after the death of the first-to-die spouse. The estate tax rate remains steady at 40%.
The gift tax exclusion remains $15,000 per recipient. So, you can give up to $15,000 ($30,000 if your spouse agrees) to each child, grandchild or any other person in 2021 without having to file a gift tax return or tap your lifetime estate and gift tax exemption.
Unfortunately, the tuition and fees deduction was repealed beginning with the 2021 tax year. That "above-the-line" write-off was worth up to $4,000.
However, to balance out the loss of the tuition and fees deduction, the phase-out thresholds for the lifetime learning credit were permanently increased. For the 2020 tax year, the credit was gradually reduced to zero for joint filers with a modified AGI from $118,000 to $138,000 and single filers with a modified AGI between $59,000 and $69,000. Beginning in 2021, the phase-out range for married couples filing a joint return is $160,000 to $180,000, and it's $80,000 to $90,000 for single filers. (The same phase-out ranges apply to the American Opportunity tax credit.)
The income caps are also higher in 2021 for tax-free EE bonds used for education. The exclusion starts phasing out above $124,800 of modified AGI for couples and $83,200 for others ($123,550 and $82,350 for 2020). It ends at modified AGI of $154,800 and $98,200, respectively ($153,550 and $97,350 for 2020). The savings bonds must be redeemed to help pay for tuition and fees for college, graduate school or vocational school for the taxpayer, spouse or a dependent.
U.S. taxpayers working abroad have a larger income exclusion in 2021. It jumped from $107,600 for 2020 to $108,700 for 2021. (Taxpayers claim the foreign earned income exclusion on Form 2555.)
The standard ceiling on the foreign housing exclusion is also increased from $15,064 to $15,218 for 2021 (although overseas workers in many high-cost locations around the world qualify for a significantly higher exclusion).
The Social Security annual wage base is $142,800 for 2021 (that's a $5,100 hike from 2020). The Social Security tax rate on employers and employees stays at 6.2%. Both workers and employers continue to pay the 1.45% Medicare tax on all compensation in 2021, with no cap. Workers also pay the 0.9% Medicare surtax on 2021 wages and self-employment income over $200,000 for singles and $250,000 for couples. The surtax doesn't hit employers, though.
In August 2020, President Trump issued an executive memorandum allowing employers to suspend the collection and payment of Social Security payroll taxes from September 1 until the end of 2020 for workers making less than $4,000 for any bi-weekly pay period (i.e., $2,000 per week, or $104,000 per year). The president's action didn't eliminate the tax debt — it just delayed withholding and payment of the tax — and it was optional. If your employer suspended payroll taxes in 2020, it must collect the deferred taxes from your paycheck by December 31, 2021. So, during 2021, some workers will have more withheld from their paychecks for the 6.2% Social Security tax.
The nanny tax threshold went up to $2,300 for 2021, which was a $100 increase from 2020.
The 2021 standard mileage rate for business driving fell from 57.5¢ to 56¢ a mile. The mileage allowance for medical travel and military moves also declined from 17¢ to 16¢ a mile in 2021. However, the charitable driving rate stayed put at 14¢ a mile — it's fixed by law.
The limits on deducting long-term care insurance premiums are higher in 2021. Taxpayers who are age 71 or older can write off as much as $5,640 per person ($5,430 for 2020). Filers age 61 to 70 can deduct up to $4,520 ($4,350 for 2020). Anyone who is 51 to 60 can deduct up to $1,690 ($1,630 for 2020). For people age 41 to 50, the max is $850 ($810 for 2020). Finally, for whippersnappers age 40 and younger, it's $450 ($430 for 2020). For most, long-term care premiums are medical expenses deductible only by itemizers on Schedule A. However, self-employed people can deduct them on Schedule 1 of the 1040.
The annual cap on deductible contributions to health savings accounts (HSAs) rose in 2021 from $3,550 to $3,600 for self-only coverage and from $7,100 to $7,200 for family coverage. People born before 1967 can put in $1,000 more (same as for 2020).
Qualifying insurance policies must limit out-of-pocket costs in 2021 to $14,000 for family health plans ($13,800 in 2020) and $7,000 for people with individual coverage ($6,900 in 2019). Minimum policy deductibles remain at $2,800 for families and $1,400 for individuals.
Health and dependent care flexible spending accounts (FSAs) generally run on an annual use-it-or-lose-it basis. There are limits to the amount you can contribute each year, too. However, because of difficulties some families faced when trying to use and manage their FSAs during the pandemic, some temporary rules were put in place to add even more flexibility to FSAs. For example, instead of losing unused FSA funds at the end of the year, employers can modify their FSA plans to allow a worker's unused funds from 2020 to be used in 2021 and unused funds from 2021 to be used in 2022.
As an alternative, employers are permitted to extend the grace period for using FSA funds after the end of the year. Normally, FSA plans can offer a grace period of up to 2½ months (i.e., to March 15). However, a grace period of up to 12 months is allowed for using 2020 and 2021 FSA funds.
Unused amounts carried over from a prior year or available during an extended grace period won't be taken into account in determining the annual contribution limit for the following year. That means the funds that continue to be available are still excluded from the employee's taxable income if used for dependent care expenses.
Workers can also contribute more to a dependent care FSA in 2021. Instead of the normal $5,000-per-year limit on tax-free contributions, a family can sock away up to $10,500 in a dependent care FSA in 2021 without paying tax on the contributions.
Employers are also allowed to extend the maximum age of eligible dependents from 12 to 13 for dependent care FSAs for unused amounts from the 2020 plan year carried over into 2021.
The premium tax credit helps eligible Americans cover the premiums for health insurance purchased through an Obamacare exchange (e.g., HealthCare.gov). The American Rescue Plan enhanced the credit for 2021 and 2022 to lower premiums for people who buy coverage on their own. First, it increases the credit amount for eligible taxpayers by reducing the percentage of annual income that households are required to contribute toward the premium. It also allows the credit to be claimed by people with an income above 400% of the federal poverty line.
In addition, when insurance is purchased through an exchange, eligible people can choose to have an estimated credit amount paid in advance to their insurance company so that less money comes out of their own pocket to pay monthly premiums. Then, when they complete their tax return, the calculated credit is compared it to the advance payments. If the advance payments are greater than the actual allowable credit, the difference (subject to certain repayment caps) must be paid back either by subtracting the difference from a tax refund or adding it to the tax owed. The American Rescue Plan suspended the repayment of excess advanced payments of the premium tax credit…but only for the 2020 tax year. So, advance payments in 2021 that exceed the credit amount on your 2021 tax return will have to be repaid.
There's good news for anyone worried about getting hit with the alternative minimum tax:AMT exemptions ticked upward for 2021. They increased from $113,400 to $114,600 for couples and from $72,900 to $73,600 for single filers and heads of household. The phaseout zones for the exemptions start at higher income levels as well — $1,047,200 for couples and $523,600 for singles and household heads ($1,036,800 and $518,400, respectively, for 2020).
In addition, the 28% AMT tax rate kicked in a bit higher in 2021 — above $199,900 of alternative minimum taxable income. The rate applied to AMTI over $197,900 for 2020.
There's a group of tax breaks that are constantly scheduled to expire, but that keep getting extended by Congress for another year or two. These tax breaks are collectively referred to as "tax extenders."
Several of the "tax extender" deductions and credits were set to expire after 2020…but guess what happened. Yep, Congress kicked the can down the road once again and renewed many of them on a temporary basis. Most of the extended tax breaks are for businesses, but several of them impact individual taxpayers.
Tax breaks for individuals that were extended until the end of 2021 include the:
The exclusion for forgiven mortgage debt was also renewed through 2025 (although the maximum amount that can be excluded is reduced from $2 million to $750,000).
In addition, the 26% rate for the residential energy efficient property credit was extended through 2022 (the credit applies to the cost of solar electric property, solar water heaters, geothermal heat pumps, small wind turbines, fuel cell property, and qualified biomass fuel property). The rate was previously scheduled to drop to 22% in 2021, but now it won't be reduced until 2023. The credit is then set to expire after 2023.
Two tax breaks for individuals were made permanent, too. First, the 7.5%-of-AGI threshold for deducting medical expenses won't be raised. It was scheduled to jump to 10% after 2020. The exclusion for state or local tax benefits and reimbursement payments provided to volunteer firefighters and emergency medical responders is now a permanent tax break as well.
If you're self-employed, there are some additional 2021 tax law changes that could impact your bottom line. For example, a key dollar threshold on the 20% deduction for pass-through income was increased for 2021. Self-employed people and owners of LLCs, S corporations and other pass-through entities can deduct 20% of their qualified business income, subject to limitations for individuals with taxable incomes in excess of $329,800 for joint filers and $164,900 for others ($326,600 and $163,300, respectively, for 2020).
In addition, tax credits that were allowed in 2020 for self-employed people who couldn't work for a reason that would have entitled them to pandemic-related sick or family leave if they were an employee have been extended to cover leave through September 30, 2021. The number of days for which self-employed people can claim the credit for family leave was also increased from 50 to 60, and the 10-day limit on the maximum number of days for which a self-employed person can claim the sick leave credit was reset to begin again on January 1, 2021.
Other changes that self-employed Americans need to know about include: