Patricia A. McBean, EA, CAA is and Enrolled Agent, Certifying Acceptance Agent, Notary Public, and the Owner of AM-PM Business Solutions, LLC. Before starting her own practice, Patricia worked at a national tax preparation chain store in Palm Coast for 7 1/2 years. She started as a Tax Associate and worked her way up to Assistant Manager, income tax course Instructor, and ultimately became the Office Manager for the last 3 1/2 years of employment there. After becoming an Enrolled Agent and with the blessing of her family, Patricia decided to venture out on her own.
It is important to Patricia that her clients understand their tax situation and plan financially throughout the year to minimize their tax liability. She stays abreast of current tax laws and the latest technology so that she can provide the best service to achieve this goal.
Patricia McBean, EA, CAA
2021 Tax Law Changes for Individuals
· The Standard deduction is as follows:
o Single - $12,550 (Add $1,700 for Blind and Over 65)
o Married filing joint - $25,100 (Add $1,300 for Blind and Over 65)
o Head of Household - $18,800 (Add $1,700 for Blind and Over 65)
o Married filing separate - $12,550 (Add $1,350 for Blind and Over 65)
o Widow(er) with Dependent Child - $25,100 (Add $1,350 for Blind and Over 65)
· Child Tax Credit – Under Age 6 - $3,600
· Child Tax Credit – Age 6 to 17 - $3,000
· For 2021, there is an above the line deduction for charitable cash contribution of $300 ($600 for Married Filing Joint)
· The annual IRA contribution limit for 2021 is $6,000, or $7,000 if you are age 50 or older. You have until April 15, 2022 to make a 2021 contribution.
· Standard mileage rates are as follows:
o Business – .56 cents per mile
o Medical/Moving – .16 cents per mile
o Charity – .14 cents per mile
· If you did not receive your stimulus payments, you can claim it as the Recovery Rebate Credit on your 2021 Tax Return. Stimulus payments are not taxable.
· The IRS will be sending out the following letters to applicable taxpayers:
o Letter 6419 showing the total Advance Child Tax Credit payments received in 2021 to reconcile the Child Tax Credit
o Letter 6475 showing the EIP payment received in 2021 to claim Recovery Rebate Credit
o Form 1095-A from the Health Insurance Marketplace to reconcile the Advance Premium Tax Credit for 2021
We strive to provide accurate, courteous, professional, and prompt service to our clients. We are certain that you will be satisfied. We will work with you to resolve any issues that may arise or refund any fees paid if you are not completely satisfied.