Key Changes for Tax Year 2021

Updated: 2 days ago



IRS has announced its annual inflation adjustments for the 2021 tax year. More than 60 tax provisions - including the tax rate schedules and other tax changes are included in Revenue Procedure 2020-45 (click to see the full list). The following are just the key changes.


2021纳税年度的重点变化

​Tax Year 2021

​​Tax Year 2020

Recovery Rebate Credit

纾困金:没有收到,可以在税表上讨回

$1,400 EIP3


Ø If you did not receive EIP3 $1,400 or less, you can claim it on 2021 tax return.

​$1,200 EIP1 & $600 EIP2


Ø If you did not receive EIP1 $1,200 and/or EIP2 $600 or less, you can claim it on 2020 tax return.

Child Tax Credit

儿童税收抵免:今年大幅增加

​$3,600 per child under 6

$3,000 per child for ages 6 to 17


Ø Fully refundable

Ø If you received some in advance, the credit will be reduced.

$2,000 per child under 17


Ø Partly refundable

Other Dependent Credit

其他抚养者抵免:金额不变,年龄变了

​$500 for ages over 17


Ø Non-refundable


​$500 for ages over 16


Ø Non-refundable


Child and Dependent Care Tax Credit

托儿费用抵免:今年大幅增加

​35% to 50% of up to $8,000 in eligible expenses for one child/disabled person or $16,000 for two or more


Ø Fully refundable

​20% to 35% of up to $3,000 in eligible expenses for one child/disabled person or $6,000 for two or more


Ø Non-refundable


Earned Income Tax Credit

低收入税收抵免:今年特别是没有小孩的金额增加了不少,在限制方面也宽松了很多

​$1,502 to $6,728


Ø Fully refundable

Ø Depending on your income and how many children you have

Ø Investment income must less than $10,000

Ø Ages from 19 to no limit


​$538 to $6,660


Ø Fully refundable

Ø Depending on your income and how many children you have

Ø Investment income must less than $3,650

Ø Ages from 19 to 64

Unemployment Compensation

失业金:今年就不免税了

​Suspended

​Up to $10,200 ($20,400 for MFJ) exempt from federal income tax for AGI less than $150,000

Charitable Cash Contributions

现金慈善捐款:夫妻可以600

​$300 per person ($600 for MFJ) for “above-the-line” deduction


​$300 per return for “above-the-line” deduction

Premium Tax Credit

奥巴马保费补贴:今年要还多给的垫底费了

​Shown on 1095-A


Ø Fully refundable

Ø Repayment required


​Shown on 1095-A


Ø Fully refundable

Ø Repayment not required

Forgiven Student Loan

取消学生贷款:今年不会被视为收入

​Excluded as taxable income for 2021 to 2025. It will be taxed again in 2026

​Included as taxable income

Tuition and Fees Deduction

高等学费扣除:今年取消,不给减了

​Suspended


Ø However, the phase-out thresholds for the lifetime learning credit were permanently increased


​Up to $4,000 for “above-the-line” deduction

Self-Employed Taxes

自雇税:不能延迟支付了

​Cannot be deferred

​Can be deferred

Business Meals Deduction

商业餐费扣除:允许100%

​100% deductible


​50% deductible