By: M.Alequin
New tax law on meals and entertainment deduction
|
Type of Expense |
2021 |
|
Entertaining clients (concert tickets, golf games, etc.) |
0% deductible |
|
Business meals with clients Note: Receipts, customer name and purpose must be recorded |
50% deductible |
|
Office snacks and meals |
100% deductible |
|
100% deductible |
|
Travel Meals |
50% deductible |
State taxes and real estate taxes deduction change (SALT)
Starting in 2018, taxpayer's limitation on the Taxes deduction is only $10,000. This includes state and property taxes.
. Taxes limitation= $10,000
Note: This tax law provision is scheduled to expire after 2025.
Top tax rate for 2021 is 37% on any taxable income $628,300 for MFJ; for Single & HH is $523,600 and for MFS is $314,150 or more.
Standard Deduction for most taxpayers
|
Tax Year |
2019 |
2020 |
2021 |
|
Filing Status |
Standard deduction |
Standard Deduction |
Standard Deduction |
|
Single or Married Filing Separately |
$12,200 |
$12,400 |
$12,550 |
|
Married Filing Jointly |
$24,400 |
$24,800 |
$25,100 |
|
Head of Household |
$18,350 |
$18,650 |
$18,800 |
