Determine your filing status   

Visit the IRS website to use their Interactive Tax Assistant to determine your filing status and requirements.

Tax rates for 2021

 

 

    Taxable income 

  • Your salary 
  • Interest earned on savings and checking accounts
  • Interest on all bonds except municipal bonds and dividends on investments
  • Bonuses, severance pay, and sick pay from your employer
  • Unemployment compensation
  • Tips
  • Capital gains on mutual funds and other investments
  • Bartering, royalties, and gambling winnings, including lottery winnings
  • Most withdrawals from an IRA or annuity

    Nontaxable income

  • The money you contribute to certain types of retirement accounts
  • Gifts from your grandmother or any other gifts
  • Disability income on benefits you paid for with after-tax dollars 
  • Childcare paid for through a plan at work
  • Return of invested capital – that is, your money invested that is returned to you
  • 401K money that’s rolled over into another 401(K) or IRA when you change jobs 
  • Child support payments 
  • The money you’ve lent that is repaid

 

 

Types Of Tax Deductions

Standard Deductions – The standard deduction is a fixed, base-level amount you can get if you don’t qualify for a higher amount through itemized deductions. 

Itemized Deductions – Tax breaks you can only take if you take specific deductions you list on your tax return. 

 

 

Here are some of the more common itemized deductions include:

Mortgage expense – This can include mortgage interest and mortgage insurance premiums.

Other taxes – You may be able to deduct the amount you paid for state and local taxes, including personal property real estate taxes.

Gifts to charity – If you can itemize, you can deduct the fair market value of the spare TV you donated to the animal shelters thrift store, as well as donations to a church. 

Medical and dental expenses – A deduction is available for unreimbursed expenses above a certain percentage of your income.

 

 

BOOKS TO HELP YOU LEARN MORE ABOUT TAX PLANNING

 

YOUR INCOME TAX 2021

 

 

 

 

 

 

 

TAX-FREE WEALTH

 

 

 

 

 

 

 

 

 

JK LASSER’S NEW RULES FOR ESTATE, RETIREMENT, AND TAX PLANNING

 

 

 

 

 

 

 

 

 

 

 

 

BEST TAX SOFTWARE 

 

LIBERTY TAX SERVICES

 

 

 

 

 

TURBO TAX 

 

 

 

 

 

EFILE

 


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