From Joey Romano, Edward Jones
This year, you have until April 18 to file your taxes. So, you may want to meet with your tax professional soon to discuss changes that could affect you.
For starters, if you took a coronavirus-related withdrawal from your 401(k) or IRA in 2020, you may be able to recontribute the money back to these accounts now and earn a tax break.
Also, the required withdrawals from retirement plans were suspended for 2020, but were back for 2021, and may have tax implications for you.
You might also look at your charitable contributions. Even if you don’t itemize, you could take a $300 deduction, or $600 for joint filers, for cash contributions to qualified charities.
Changes have also been made for 2021 to expand the child tax credit and the child and dependent care credit.
Finally, keep in mind that you can contribute to your IRA for 2021 until this year’s filing deadline.
See your tax professional soon to ensure you’ve got everything in order. The IRS is stretched especially thin this year, so you’ll want to consider filing as soon as possible, especially if you’re anticipating a refund.
This content was provided by Edward Jones for use by Joey Romano, your Edward Jones financial advisor at 126 W. Lafayette St. Jefferson, TX,
903-665-9965.
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