New Stimulus Law Grants Eight Tax Breaks for 1040 Filers

If you’re a regular reader of the Tax Reduction letter, you know our goal is to help small businesses.

But in this issue, we’ve got some good news for non-business taxpayers who file Form 1040s.

Thanks to the huge stimulus bill enacted on December 27, 2020, there’s a way for everyone to come out a winner.

I’m talking about a host of tax breaks that can save money for wealthy, average, and low-income taxpayers.

Okay. Individual changes in the tax law, that we’ll outline below, won’t save you a fortune. But taken together, they add up to a nice gift from Uncle Sam to pandemic-weary taxpayers.

You’ll get the whole story when you…

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“New Stimulus Law Grants Eight Tax Breaks for 1040 Filers”

How to take advantage of
eight money-saving tax breaks

1. Deduct cash contributions to charities if you don’t itemize
2. Deduct up to 100% of your adjusted gross income (AGI) as a charitable deduction
3. Lengthen to one year, the time you have to repay your employee 2020 Social Security taxes (if you had them deferred)
4. Deduct medical expenses that exceed 7.5% of your AGI in 2021
5. Carry over unused flexible savings account funds to next year
6. Use your 2019 income to qualify for the Earned Income Tax Credit (EITC) and/or the Child Tax Credit (CTC) if you’re a low income taxpayer
7. Deduct out-of-pocket expenses for Personal Protective Equipment (PPE) if you’re a teacher
8. Take advantage of the lifetime learning credit (LLC) if you’re a high income taxpayer in 2021

You’ll get full details when you…

Read the full article
“New Stimulus Law Grants Eight Tax Breaks for 1040 Filers”