The IRS has announced the procedure for taxpayers to optionally opt-out of receiving the advance child credit payments. Depending on a client’s circumstances, practitioners should consider warning clients to opt-out of receiving the advance payments. As discussed in our May 18, 2021 post, the IRS will begin making monthly advance payments of the newly-increased child tax credit on July 15, 2...
For the 2021 tax year, the requirement to take minimum distributions from retirement accounts once again applies. The requirement was suspended for the 2020 tax year, due to the pandemic. Practitioners should consider reminding affected clients about this requirement. In general, the requirement now applies to individuals who are 72 years or older. (Special rules and considerations continue ...
The New York State 2021 to 2022 budget creates an optional pass-through entity tax (PTET) which can be used as a possible workaround for owners of passthrough entities that are affected by the $10,000 federal limitation on the itemized deduction for state and local taxes (often referred to as the SALT cap). The optional tax is effective for tax years beginning on or after January 1, 2021. Whil...
The New York State 2021 to 2022 budget increased certain personal income tax rates for the 2021 tax year. Practitioners should consider warning affected clients about the effects of these new rates. The budget increases the 8.82% bracket to 9.65%. In addition, for taxable income over $5 million and up to $25 million, the new tax rate is 10.3%. For taxable income over $25 million, the new t...
