Increased child tax credit & monthly payments
- The monthly payments from the IRS per child will stop this year unless Congress extends them.
- The credit is also being reduced from up to $3,600 per child and fully refundable, back to its former self of a max of $2,000 per child and only $1,400 is refundable
Meals Fully Deductible
- As of now qualified business meals are 100% deductible. This is set to expire at the end of 2022.
- We will then revert back to a 50% deductible rate
Child Care Cost & Credit
- Currently, this credit is 50% of the cost and maxed out at $4,000 for one child or $8,000 for two or more children
- This will revert back to its former self of $1,050 for one child and $2,100 for two or more children
Charitable Contributions Ending
- In 2020 & 2021 if you contributed cash to a charity you were able to take a deduction up to $300 or $600 respectively regardless of whether you itemized or not.
Mortgage Insurance Deduction (PMI)
- For individuals that are able to itemize congress allows the write-off of your mortgage insurance payments also known as PMI. As of 12/31/2021, this has ended and not been renewed.
As always our tax plan for business owners or investors bundles this knowledge and MUCH more into account to create your individualized tax plan to be used for YEARS. Feel free to text, email, or call us to see how a tax plan could benefit you.
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