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5 Tax Breaks Extended for 2021 If Not Longer
Recent legislation means you might be able to claim these federal income tax breaks into next year.
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Federal budget legislation enacted in late December did a lot more than fund the government for another year.
It also includes the Taxpayer Certainty and Disaster Relief Act of 2020, a law that extended numerous tax breaks that otherwise would have expired. That means these breaks are available for not just your 2020 federal tax return that’s due in April but also the one after that if not longer.
So, with the tax filing season set to officially get underway on Feb. 12, let’s take a look at some of the breaks for individuals that the recent tax law has revived.
5 States Lowering Taxes This Year and 2 Raising Them
State personal income tax rates, brackets and deductions just changed in these places.
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Taxes are a hot topic in 2021. The new president has promised to raise taxes on the wealthy, and the Tax Foundation reports 26 states and the District of Columbia have made noteworthy changes to their tax codes.
In some states such as Arkansas and Iowa corporate tax rates are falling. In Connecticut, Vermont and the District of Columbia, estate tax rules are changing.
However, most people focus on personal income taxes. In two states, income taxes will rise in 2021. But in five others, rates will fall.