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Tax filing due dates:
Personal tax returns are due April 18th. If necessary, Form 4868 can be electronically filed requesting a 6 month extension. For businesses, the
S-Corporation and Partnerships taxes are due March 15th and Form 7004 may be filed for a 6 month extension. C-Corporations are due April 18th and Form 7004 may be filed for a 6 month extension.
Change in tax rates:
Starting in 2018, most tax rates have been reduced. This means most people will pay less tax starting in 2018. For 2020: 10%, 12%, 22%, 24%, 32%, 35%, 37%
Refunds: By law, the IRS cannot issue a refund on tax returns claiming the Earned Income Credit or the Additional Child Tax Credit before mid-February. This applies to the entire refund - even the portion not associated with EITC and ACTC.
The Standard deduction amounts are as follows:
Single $12,950 $14,700 if age 65 and older
Married Filing Jointly $25,900 plus $1,400 for each spouse age 65 or older
Married Filing Separately $12,950 $14,350 if over age 65 and older
Head of Household $19,400 plus $1,750 if age 65 and older
Earned Income Credit maximum amounts are:
With No Children $560
With One Child $3,733
With Two Children $6,164
With Three or More Children $6,935
Personal and Dependent Exemption amount: The amount is -0-
Child Tax Credit amounts: The deduction amount is $2,000 for children
under the age of 17.
Other Dependent Credit amount: The deduction amount is $500 and the
Refundable portion is -0-
The adoption credit can be up to $14,890 of costs, a $450 increase.
Deduction for state and local income, sales & property taxes modified:
On Schedule A the total deduction of $10,000 ($5,000 if Married Filing Separate)
Standard Mileage Rates:
Beginning on January 1, 2022, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be:
58.5 cents per mile for business miles driven between Jan 1-June 30, 2022 62.5 cents per mile from July 1-Dec 31, 2022
18 cents per mile driven for medical or moving purposes driven between Jan 1-June 30, 2022 & 22 cents between July 1-Dec 31, 2022
14 cents per mile driven in service of charitable organizations.
Penalties related to Obamacare:
No penalties imposed for tax year 2019-2022. Previously The Affordable Care Act imposed penalties for those not having health care coverage unless you have an exemption. For 2018: The basic fine is $695 per adult, $347.50 per child, with a family ceiling of $2,085. The income-based levy remains 2.5% of the excess of household income over the tax return filing threshold.