Your Villa Magazine - Moreno Valley - Perris - February-March 2022

20 | TAX COMP • (951) 486-9862 • 23025 Atlantic Circle Suite D, Moreno Valley, CA 92553 C HILD AND D EPENDENT C ARE T AX C REDIT E XPANDED FOR 2021 The American Rescue Plan increased and expanded the credit making more people eligible and increasing the total credit to $4,000 for one qualifying individual and $8,000 for two or more. Previously in 2020, the maximum credit for one qualifying individual was $1,050 and $2,100 for two or more. You can claim this credit if you spend money for the care of children younger than 13 or for a dependent who is 13 or older and unable to care for themselves so that you can work, or look for work. You must have earned income from a job to qualify for the credit. If you are married, both you and your spouse must have a job or be a full-time student. The cost of daycare, preschool, before and after school care, day camp, or a nanny or other babysitter can count toward this credit. Mark Kamio RTRP, with wife Katrina, daughter, Grace & son, Nehemiah IRA SAVINGS It isn’t Rocket Science ...but it is genius! BENEFITS OF AN IRA • Defer taxes on your earnings so that you can potentially accumulate more for retirement. • Invest annually up to $6,000, or $7,000 for age 50 or older. • Supplement your 401(k) retirement plan savings • 56¢ per mile for business miles • 16¢ per mile for medical or moving purposes • 14¢ per mile in service of charitable organizations 2021 Mileage Deductions Social Security Benefits Ƃ portion of your -ocial -ecurity Benefits will be taxable if your other sources of income, combined with half of your -ocial -ecurity benefits exceed a base amount determined by your filing status. See the experienced staff at Tax Comp to help you plan for the taxable portion of your social security benefits. Filing Status Base Single $25,000 Head of Household $25,000 Married Filing Jointly $32,000 Married Filing Separately $ 0.00* Qualifying Widow(er) $25,000 Owe Money? Get a Fresh Start with the IRS Fresh Start Initiative ... Settling Your Tax Debt for Less The Fresh Start Initiative presents a great opportunity to get your finances back in order. The Fresh Start Initiative includes four components to help struggling taxpayers: 1. Tax Liens: The Notice of Federal Tax Lien filing threshold remains at $10,000. 2. Installment Agreements: Fresh Start Initiative provisions raised thresholds on balances due and the time given to pay tax liability. Are you behind on your taxes but still looking for a tax break? Sound too good to be true? Actually, you just might be the perfect candidate for the Internal Revenue Service Fresh Start Initiative. 2ffice 0anager -oe 9idrio, wife Chynna, daughters, Brinley and Lennox IRS IRS TAX COMP 3. Offers-in-Compromise: The Fresh Start initiative also provides for a streamlined offer-in-compromise process. 4. Penalty Abatement: You may be able to abate or reduce tax penalties incurred due to late filing or late payment if you have a reasonable cause.