Tax laws are constantly changing, and it is essential for businesses and individuals to stay up-to-date with the latest changes to ensure compliance and maximize tax benefits. Here are some recent tax law changes our non-profit accounting services would like to share:

• Tax Cuts and Jobs Act (TCJA)
  Some key changes include lower tax rates for individuals, an increase in the standard deduction, and changes to business deductions and credits.
• COVID-19 relief measures
  In response to the COVID-19 pandemic, several tax relief measures were enacted to help businesses and individuals. These include the Paycheck Protection Program (PPP) for small businesses, stimulus payments to individuals, and changes to unemployment benefits.
• State and local tax (SALT) deduction
  The SALT deduction was limited to $10,000 for individuals, which impacted high-tax states like New York and California. However, recent proposals have sought to repeal this limitation.
• Estate tax exemption
  The estate tax exemption has increased significantly in recent years. For 2021, the exemption is $11.7 million for individuals and $23.4 million for married couples.
• Retirement plan contributions
  The contribution limits for retirement plans, such as 401(k)s and IRAs, have increased in recent years, which provide significant tax benefits for individuals saving for retirement.

Other additions our tax services would like to share are changes to the expanded tax credits for businesses, including the research and development credit, the employee retention credit, and the work opportunity tax credit.

It is important to work with a tax professional or stay informed through reliable sources to ensure compliance and take advantage of available tax benefits. TAKEOVER Accounting & Consulting LLC provides consultation services in New Jersey that can help you with this.

Contact your friendly accounting services in Cherry Hill, New Jersey, at 856-777-6140.