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It’s a New Year, but Taxes remain an Old Concern!

By Christopher Kelly

There is always speculation over what a new administration will or will not do concerning the tax code.  While changes can be implemented retroactively, it is far more realistic major changes will not go into effect until 2022.  Still, every year there are minor alterations that can affect us and we need to be aware.

Filing Single Tax Bracket Income RangeMarried Filing Jointly Tax BracketIncome Range
10%$0 – $9,87510%$0 -$19,750
12%$9,875 – $40,12512%$19,750 – $80,250
22%$40,125 – $85,52522%$80,250 – $171,050
24%$85,525 – $163,30024%$171,050 – $326,600
32%$163,300 – $207,35032%$326,600 – $414,700
35%$207,350 – $518,40035%$414,700 – $622,050
37%Above $518,40037%Above $622,050

Source:  IRS

Filing StatusStandard Deduction for Tax Year 2021Change from 2020
Single$12,550+ $150
Married Filing Jointly$25,100+ $300
Head of Household$18,800+ $150
Married Filing Separately$12,550+ $150

 Source:  IRS

Along with the base standard deductions, there are additional “extra add-on” considerations that can be available for taxpayers 65 or older, as well as those with other specific issues.  *As always, it is in your best interest to discuss your personal situation with your own tax advisors before taking any action.

This is just a random sampling of our most “standard” and important concerns when tax-time comes around.  There are a number of other changes that might have an effect on your personal filing and once again, we strongly urge you to consult with your own professional advisors, and consider setting up that discussion sooner than later.   While the “two constants in life are “death and taxes”, at least with taxes we can be proactive!