New For Taxes For 2021 Filing
"Recovery Rebate Credit/Economic Impact of Payment"
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 they didn't receive an Economic Impact Payment, or their Economic Impact Payment was less than $1,200 ($2,400 if married filing jointly for 2019 or 2018), plus $500 for each qualifying child they had in 2020.
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 2022. Individuals need to complete information about the Recovery Rebate Credit on tax year 2021 Form 1040 or
1040-SR when filing in 2021, unless eligible to claim an additional credit amount.
"Interest on Refunds Taxable"
Taxpayers who received a federal tax refund in 2020 may have been paid interest. Refund interest payments are taxable and must be reported on federal income tax returns. In January 2021, the IRS will send Form 1099-INT to anyone who received interest totaling $10 or more.
"Charitable Deduction Changes"
New this year, taxpayers who don't itemize deductions may take a charitable deduction of up to $300 for cash contributions made in 2020 to qualifying organizations. For more information, read Publication 526, Charitable Contributions.
Additional Information: https://www.irs.gov/credits-deductions-for-individuals