Looking Ahead: How the American Rescue Plan Affects 2021 Taxes, Part 1

This article was published by the IRS. This is the first of two tax tips providing an overview of how the American Rescue Plan may affect some individual's 2021 taxes. Child and dependent care credit increased for 2021 only The new law increases the amount of the credit and the percentage of employment-related expenses for qualifying [...]

IRS Provides Guidance on Premium Assistance and Tax Credit for Continuation Health Coverage

This article was published by the IRS. The Internal Revenue Service has provided guidance on tax breaks under the American Rescue Plan Act of 2021 for continuation health coverage under the Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA). Notice 2021-31 provides guidance for employers, plan administrators, and health insurers regarding the new credit available to [...]

New Law Provides Additional Flexibility for Health FSAs and Dependent Care Assistance Programs

This article was published by the IRS. The Internal Revenue Service is providing greater flexibility, due to the pandemic, to employee benefit plans offering health flexible spending arrangements (FSAs) or dependent care assistance programs. Under the COVID-related Taxpayer Certainty and Disaster Tax Relief Act of 2020, these plans now have additional discretion in 2021 and 2022 [...]

IRS Suspends Requirement to Repay Excess Advance Payments of the 2020 Premium Tax Credit

This article was published by the IRS. The premium tax credit helps pay for health insurance coverage bought from the Health Insurance Marketplace. Eligible people can choose to have all, some, or none of the estimated credit paid in advance directly to their insurance company on their behalf. These payments – which are called advance payments [...]

IRS Extends Additional Tax Deadlines to May 17

This article was published by the IRS.  Following the extension of the filing and payment deadline for individuals to May 17, 2021, the IRS announced other tax deadline extensions to the same date. Here's what's affected: Contributions to IRAs and health savings accounts People now automatically have until May 17, 2021, to make 2020 contributions to [...]

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