The American Rescue Plan makes these nine tax law changes for 2021:
- Additional stimulus payments
- Expanded Child Tax Credit
- Expanded Child and Dependent Care Credit
- Expanded Earned Income Tax Credit
- Increased Premium Tax Credits
- Extension and expansion of Paid Sick Leave and Family Leave
- Extension of Employee Retention Credit
- Pension plan relief
- Repeal of worldwide interest allocation
At the time of this post publication the American Rescue Plan is not yet law however we do recommend adjusting 2021 your tax planning forecasts immediately. Use the “Let’s Talk” button to schedule a call to have an initial discussion or schedule an update to your tax planning forecast calculation.