New Tax Season Begins... No images? Click here January 2021 Tax NewsletterHappy New Tax Year !!Tax Season 2021 is here NOW!CONGRESS Approves New Stimulus PaymentsThe U.S. Congress has approved a new stimulus package before the year ended. Many Americans have already received the new economic impact payments of $600 for each person, including dependent children. Check your status on the IRS website of the payment. Click on the blue box "Get My Payment" to check your status. In searching, reminders:
If the payments are increased to $2,000, what will happen? Read here. This is a strong possibility with the U.S. Senate obtaining a Democrat majority. However, there is a slim chance of the repeal of the CBT happening now. How will a taxpayer know if they are eligible to receive a second stimulus payment?If someone has an adjusted gross income (AGI) of up to $75,000 ($150,000 married filing jointly), they should be eligible for the full amount of the recovery rebate. As the AGI increases over $75,000 ($150,000 married filing jointly), the stimulus amount will go down. The stimulus check rebate completely phases out at $99,000 for single taxpayers, $136,500 for those filing as Head of Household, and $198,000 for joint filers with no kids. The bill also expands stimulus payments to mixed-status households (households with different immigration and citizenship statuses), meaning more households will be immediately eligible for this stimulus than were for the first round. This also may be retroactive, so some individuals that were ineligible for the first stimulus, provided under the CARES Act, may then be eligible to receive that payment as well. Those people receiving Social Security retirement, disability, Railroad Retirement, VA, or SSI income, and are not typically required to file a tax return, will again receive a stimulus payment. As in the first round, the IRS will use the information from Form SSA-1099, Form RRB-1099, or the Veterans Administration, to generate a stimulus payment. U.S. Citizens with Foreign Bank Accounts WarningFATCA, passed in 2010, has caused many U.S. expats headaches leading to renunciation of their American Citizenship. However, a recent article of how bankers will start acting on American citizens and their bank accounts. Expats should also be aware that this issue may not only be a Belgian bank issue but throughout the E.U. and possibly globally. Accidental Americans should be very aware of these requirements on how their banks may treat them as "foreigners" and not as a local citizen. This article published by PWC, "Update – American Belgians risk losing their Belgian bank account", is essential reading for most expat Americans. Donations for 2021 - $2,000The CARES Act provided adjustment to income for 2020 of $300 for cash charitable donations. However, for your 2021 tax return, the new Covid relief bill you will be able to obtain a charitable contribution credit of up to $2,000 straight against your income. You still have a few more months to make that contribution to your favorite charities. Read more information here concerning the new bill. Recovery Rebate Credit/Economic Impact Payment.Statement published by IRS: Taxpayers who received an Economic Impact Payment, should keep Notice 1444, Your Economic Impact Payment, with their 2020 tax records. They may be eligible to claim the Recovery Rebate Credit on their tax year 2020 federal income tax return if: If a taxpayer didn't receive the full amount of the Economic Impact Payment for which they were eligible, they may be able to claim the Recovery Rebate Credit when they file in 2021. Individuals do not need to complete information about the Recovery Rebate Credit on tax year 2020 Form 1040 or 1040-SR when filing in 2021, unless eligible to claim an additional credit
amount. Early Bird Discount OfferTake advantage of this offer in order to qualify for an early bird discount on your tax preparation filing fees for the 2020 tax return. Contact us concerning the details of the offer. Offer expires February 14, 2021. Tax-Prep Checklist available to make the gathering documents easier. Contact us for your copy of the Checklist. Tax consultationPlease contact us if you wish to arrange for a time to speak concerning your tax situation. We can conduct telephone, video, or in-person (Brussels) consultations. Appointments can be made here. Or you can contact us by email with any questions or concerns for this tax season. Check website for more information ... www.mirtaxes.com Convert currency & save money!Convert your currency wisely, efficiently, and economically by opening an account with MoneyCorp for free today! MoneyCorp can help both private and corporate clients, with a few payments that includes:
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