What's New in 2021 For Individuals

Here are some of the changes coming into effect for tax year 2021:

1. Tuition and Fees Deduction eliminated. This tax break is now permanently closed.
2. Mortgage insurance premium deductibility. You may still deduct mortgage insurance premiums as an itemized deduction. 
3. Exclude discharge of mortgage indebtedness. With the extension of this law, qualified debt forgiveness on qualified mortgages is still not considered income.

 

1. Above the line charitable deductions. If you do not itemize, you can deduct up to $300 in qualified charitable deductions ($600 for married couples).

Given the ongoing pandemic, expect other tax changes throughout the year.