New Legislation and Its Affect On Your Taxes
The President is expected to sign the American Rescue Plan Act of 2021, which extends unemployment benefits, provides funding for state and local governments, supports vaccine rollouts, expands the child tax credit, makes a portion of unemployment compensation non-taxable for certain filers, and gives many Americans an additional Economic Impact Payment.
There are a couple of items in the bill that will impact 2020 tax returns - even returns that have already been filed. One is that some unemployment compensation went from taxable to non-taxable, another is that repayment of the Advance Premium Tax Credit has been eliminated. If either applies to you for 2020, it’s likely that your taxes will be reduced under the new law.
We realize that you may have questions about how these changes affect your return, and I want to assure you that BBTA is working hard to determine who needs to be contacted. If these new changes affect your return, we’ll be in contact with you shortly to determine how your tax return should be changed or amended.
Because these changes were passed into law in the middle of an already busy tax filing season, please give us a few weeks to respond. If you have any questions in the meantime, please send us an email - this will give us time to pull your file and determine how the new law affects your tax return.
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25 Years of solving tax problems for people like you.
Courtney Kosnik, EA, NTPI Fellow
President, BBTA Tax Advisors
BBTA helps families, small businesses, trusts, and estates across the USA meet their financial goals. Whether you need to stay compliant with the tax code, grow your business, or resolve disputes with the IRS, our team of tax and accounting professionals at BBTA are on your side.
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Only Enrolled Agents are required to demonstrate to the IRS their competence in all areas of taxation, representation and ethics before they are awarded unlimited right to represent taxpayers before the IRS. Unlike CPAs which are licensed by the state and might not specialize in tax law, BBTA’s Enrolled Agents are federally licensed to represent our clients to the IRS in all fifty states.