New tax changes for 2021 tax year.

Here are some of the changes for the 2021 tax year.

For those who received unemployment in 2021, the first $10,200 will be exempt from federal income tax. If you do not receive a statement in the mail, go to your Indiana Unemployment account to print a copy for tax purposes.

For business owners, mileage is set at $.56 per mile. Make sure your mileage is as accurate as possible. Record your mileage on December 31 each year so we can put that information on your tax return.

For tax years 2021 and 2022, business owners may deduct 100% of meals instead of 50%. This is a temporary change, not scheduled to continue beyond 2022.

For taxpayers who do not itemize, charitable deductions has changed. MFJ will be allowed to deduct $600 on the front page of the return, 2020 was $300. Single filers may deduct up to $300, an increase from $150. The state of Indiana does not like this deduction and does add it back to the state return.

Taxpayers can put an extra $1,000 into their 401(k) plans. The 2022 contribution limit will increase to $20,500. Limits on contributions to traditional and Roth IRAs remains unchanged at $6,000. There are income limits for earners about $200,000 concerning how much can be contributed to these plans.