Page 5 - Supplement to Income Tax TY2021

Contents

Recent Tax Developments 3 Form 1040—Schedule C 34
Last Minute Tax Changes 3 Form 1040—Schedule D 36
IRS Mileage Rates for 2021 5 Form 1040—Schedule E 38
Gain on Opportunity Zone Assets 5 Form 1040—Schedule SE 40
Social Security & Medicare Taxes on 2021 Form 1040—Schedule EIC 42
Wages & Self-Employment Earnings 6 Form 1040—Schedule 8812 44
Medicare Part B and Part D Premiums for 2021 6 Recovery Rebate Credit Worksheet 45
2019 MAGI and Filing Status Determine 2021 2020 Child Tax Credit and Credit for
Medicare Premiums and Surcharges 8 Other Dependents Worksheet 46
New RMD Life Expectancy Tables Qualified Dividend and Capital
Will Take Effect in 2022 8 Gain Tax Worksheet 48
Estimating Your 2021 Taxes 11 Schedule D Tax Worksheet 49
Retirement Plan Cost-of-Living Deferral Worksheet for Schedule H or Schedule SE Filers 51
Adjustments for 2021 11 Form 4684 52
Non-Retirement Cost-of-Living Form 8915-E 56
Adjustments for 2021 12
2021 Tax Rate Tables 15 Form 8949 58
Updates, Additions, and Corrections to the Form 8959 60
Text of Your Income Tax 2021 16 Form 8960 61
Where do you file your 2020 Form 1040 or 1040-SR? 21 Form 8962 62
Forms, Tables, Worksheets for 2020 22 Form 8995 64
Form 1040 23 Form 8995-A 65
Form 1040-SR 25 2020 Tax Table 67
Form 1040—Schedule 1 29 2020 Tax Computation Worksheet 79
Form 1040—Schedule 2 30 2020 Earned Income Credit (EIC) Table 80
Form 1040—Schedule 3 31 2020 Optional State Sales Tax Tables 88
Form 1040—Schedule A 32 2020 Bond Tables—Series EE 93
Form 1040—Schedule B 33 2020 Bond Tables—Series I 101

Recent Tax Developments*

(Boldface page references in the headings of the following articles are to the text of J.K. Lasser’s Your Income Tax 2021.)
Last Minute Tax Changes

The Consolidated Appropriations Act (CAA), 2021, returns, while others go into effect in 2021, impacting
was signed into law on December 27, 2020. This tax planning for 2021 and beyond. In addition to the
massive spending measure included various financial following items, tax law changes are also discussed in
help to individuals (round 2 economic impact the “Updates, Additions and Corrections” section of
payments) and small businesses (more Paycheck this Supplement; see pages 16–21 below.
Protection Program loans and other government Changes effective for 2020 returns. Individuals eligible
programs). One part of the legislation, the “Taxpayer for the earned income tax credit and the additional
Certainty and Disaster Tax Relief Act of 2020,” child tax credit can elect to use 2019 income to figure
includes extensions of certain expiring provisions, relief their 2020 credits. This option is advisable if it produces
for victims of qualifying disasters, and miscellaneous a greater tax credit. However, do not make the election
provisions. Some changes impact 2020 income tax if it reduces the credit or eliminates it entirely.

*This Supplement to J.K. Lasser’s Your Income Tax reflects tax developments as of February 18, 2021. Please revisit us at jklasser.com for further updates.

Supplement to J.K. Lasser’s Your Income Tax 2021 | 3