Tax news

Here are some recent tax news updates:

Individual Taxpayers

  1. Tax Filing Deadline Extended: The IRS has extended the tax filing deadline for individual taxpayers from April 15 to May 17, 2021, due to the COVID-19 pandemic.
  2. Child Tax Credit: The American Rescue Plan Act of 2021 has increased the child tax credit from $2,000 to $3,000 for children under 18 and from $4,000 to $6,000 for children under 17 with modified adjusted gross income (MAGI) below $400,000 for joint filers and $200,000 for single filers.
  3. Earned Income Tax Credit (EITC): The EITC has been expanded for the 2021 tax year, with a maximum credit of $6,728 for taxpayers with three or more qualifying children.

Business Taxpayers

  1. Business Meal Deduction: The Tax Cuts and Jobs Act (TCJA) has suspended the business meal deduction for 2021, but the IRS has announced that it will allow a limited deduction for business meals purchased at restaurants.
  2. Section 179 Expensing: The TCJA has increased the Section 179 expensing limit to $1.08 million for 2021, allowing businesses to deduct the full cost of qualified property in the first year.
  3. Pass-Through Deduction: The TCJA has introduced a 20% pass-through deduction for qualified business income (QBI) from partnerships, S corporations, and sole proprietorships.

International Tax

  1. Global Intangible Low-Taxed Income (GILTI): The TCJA has introduced GILTI, a new tax on foreign-sourced income, which is designed to prevent companies from shifting profits to low-tax jurisdictions.
  2. Foreign-Derived Intangible Income (FDII): The TCJA has introduced FDII, a new tax credit for companies that derive income from foreign-sourced intangible property, such as patents, copyrights, and trademarks.

Tax Reform

  1. Tax Reform 2.0: The Trump administration has proposed a new tax reform package, known as Tax Reform 2.0, which aims to simplify the tax code, reduce tax rates, and increase the standard deduction.
  2. Tax Harmonization: The Organization for Economic Cooperation and Development (OECD) has launched a project to harmonize international tax rules, with the goal of preventing tax evasion and ensuring that multinational corporations pay their fair share of taxes.

These are just a few of the recent tax news updates. If you have any specific questions or concerns, feel free to ask!