* While this checklist outlines important tax changes for 2021, additional changes in tax law are more than likely to come up during the year ahead.
The Internal Revenue Service (IRS) has announced the annual inflation adjustments for the tax year 2021, including tax rate schedules, tax tables and cost-of-living adjustments.
These are the numbers for the tax year 2021 beginning January 1, 2021. They are not the numbers and tables that you’ll use to prepare your 202o tax returns in 2021 (you’ll find them here). These are the numbers that you’ll use to prepare your 2021 tax returns in 2022.
If you aren’t expecting any significant changes in 2021, you can use the updated numbers to estimate your liability. If you plan to make more money or change your circumstances (for example, you’re getting married or starting a business), consider adjusting your withholding or tweaking your estimated tax payments.