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Contribution Limits for 401k:

401K contributions limits have not changed from $19,500 and an additional $6,500 for taxpayers over the age of 50 making catch-up contributions.

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Contribution Limits for IRA:

IRA contribution limits have not changed from $6,000 with a $1,000 catch-up amount for taxpayers over age 50.

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Contribution Limits for HSA:

HSA account contribution limits have increased to $3,600 self-coverage only and $7,200 for family coverage.

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Standard Deduction Increased:

For the 2021 tax season, the standard deduction amounts will be increased slightly as in previous years. The new amounts for 2021 tax returns are below:

Single:                                  $12,550

Married Filing Separate:    $12,550
Head of Household:            $18,800

Married Filing Joint:           $25,100

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Foreign Earned Income Exclusion:

For 2022, the foreign earned income exclusion amount is $112,000 up from $108,700 in 2021.

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Child Tax Credit (CTC):

The Child Tax Credit (CTC) helps offset the costs of raising kids. Nearly every family is eligible to receive the 2021 CTC this year, including families that haven’t filed a tax return and families that don’t have recent income. Each qualifying household is eligible to receive up to $3,600 for each child under 6, and $3,000 for each child between 6 and 17. The credit is not a loan. Families can receive half of their new credit between July and December 2021 and the remaining half in 2022 when they file a tax return.

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Unemployment benefits:

Many Americans who collected unemployment payments last year received a huge tax break after Congress passed the American Rescue Plan on March 11, 2021.  However, all Unemployment benefits will be taxable in 2021.

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