Providing personalized tax, accounting and consulting services to Evergreen, Conifer and the greater metro area since 1992

What is in Biden's initial tax changes proposal?

  • The top individual federal income tax rate would rise from 37% to the pre-Trump rate of 39.6%.
  • The corporate rate would rise from 21% to 28%; a 15% alternative minimum tax would apply to corporate book income of $100 million and higher.
  • Individuals earning $400,000 or more would pay additional payroll taxes.
  • The maximum Child and Dependent Tax Credit would rise from $3,000 to $8,000 ($16,000 for more than one dependent).
  • Tax relief would be offered for student debt forgiveness and the first-time homebuyer’s credit would be restored.
  • The estate tax exemption would drop by about 50%.
  • Stepped-up basis provisions for inherited assets would be eliminated.
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Unemployment benefits are non-taxable up to $10,200.

  • American Rescue Plan excluded up to $10,200 unemployment income, $20,400 if filing jointly and both had at least that much in unemployment income. IRS will send a refund if you have already filed and included that in your taxable income. 
  • Only available if your modified adjusted gross income is less than $150,000.
  • IRS will adjust returns and issue refunds if you have already filed.
  • Colorado does not allow this income exclusion!
    • The excluded amount must be added back to your CO taxable income if you deducted it for federal taxable income.
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What deadlines have been moved to May 17?

May 17 is the new due date for your 1040.
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