Edward R Williams CPA

New Exclusion of Unemployment Compensation
If your modified adjusted gross income is less than $150,000, the American Rescue Plan enacted on March 11, 2021 excludes up to $10,200 of unemployment compensation paid in 2020 from taxable income. Amounts over $10,200 are still taxable.
If you already...

How are Stimulus Checks and My Taxes Related?

The stimulus money is not considered taxable income. The checks will not increase the amount you owe or decrease your refund when you file your 2020 return. Your stimulus check is not an advance tax refund and you will not have to repay the stimulus...

The IRS issued the 2021 optional standard mileage rates for operating a vehicle for business, charitable , medical or moving purposes. They are as follows: 56 cents for business use (down 1.5 cents from 2020) 16 cents for medical or moving purposes for qualified active duty members of the Arm...

The SECURE Act (a comprehensive retirement and savings bill) became effective on Jan. 1, 2020. Provisions include increasing the required minimum distribution (RMD) age from 70 1/2 to 72 . Also, the "stretch IRA" option for non-spouse beneficiaries who inherit an IRA will need to distribute the...

There is a special deduction for cash donations of up to $300 to a qualified charity in 2020. This deduction is beneficial to taxpayers who take the standard deduction and aren't normally able to deduct their donations. The $300 maximum applies to both single and joint filers.