Your guide to newly enacted – and proposed – changes to the tax code

Between the economic recovery from the pandemic and the new federal government, there have been many recent changes to the tax code that may have an impact on your financial plans. This page lays out articles explaining the tax changes that have already been enacted as well as proposals from the Biden administration that have not yet become law. 

What’s In and Out of the Latest Tax Proposals

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Significant Changes That Have Already Been Enacted:

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Charitable Contributions

For 2020 and 2021 only, you can now deduct up to 100% of your adjusted gross income in qualified cash contributions (Consolidated Appropriations Act)

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Delays in RMDs from IRAs

You can now wait to take RMDs until age 72, up from 70½   (SECURE Act)

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529 Plan Changes

The plan assets can now be used for student debts and siblings (SECURE Act)

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Child and Dependent Care Credits

Child tax credits and dependent care credits have both been increased and made fully refundable for 2021 (American Rescue Plan Act)

For help in sorting out how these changes may affect your financial situation, talk to your Baird Financial Advisor team.


 

Baird does not provide tax or legal advice. Please consult your legal or tax professional for specific information.

The information reflected on this page are Baird expert opinions today and are subject to change. The information provided here has not taken into consideration the investment goals or needs of any specific investor, and investors should not make any investment decisions based solely on this information. Past performance is not a guarantee of future results. All investments have some level of risk, and investors have different time horizons, goals and risk tolerances, so speak to your Baird Financial Advisor before taking action.