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New this tax season

There’s a new rule to help people impacted by a job loss or change in income in 2020. taxpayers can use their2019 earned income to figure your EITC, if their 2019 earned income was more than their 2020 earned income. The same is true for the additional child tax credit.

2020 Maximum credit amounts allowed

The maximum credit amounts are based on whether the taxpayer can claim a child for the credit and the number of children claimed:

Zero children: $538
One child: $3,584
Two children: $5,920
Three or more children: $6,660
2020 income limits

Those who are working and earn less than these amounts may qualify for the EITC:

Married filing jointly:

Zero children: $21,710
One child: $47,646
Two children: $53,330
Three or more children: $56,844
Head of household and single:

Zero children: $15,820
One child: $41,756
Two children: $47,440
Three or more children: $50,954
Taxpayers who are married filing separately can’t claim EITC.

https://tinyurl.com/y5bybyx7

Eligible Paycheck Protection Program expenses now deductible | Internal Revenue Service IR-2021-04, January 6, 2021 — The Treasury Department and the Internal Revenue Service issued guidance today allowing deductions for the payments of eligible expenses when such payments would result (or be expected to result) in the forgiveness of a loan (covered loan) under the Paycheck Protectio...