Now that President Joe Biden has signed the American Rescue Plan Act into law, there are several tax-related items in the law that advisors should let their clients know about.
The law includes a variety of personal income tax planning provisions, Jeffrey Levine, a CPA who is Buckingham Wealth Partners chief planning officer and Kitces.com director of advisor education, said Tuesday during the Kitces webinar “The American Rescue Plan: What Advisors Should Know About the Latest Stimulus Legislation,” as well as in an executive summary posted on Kitces’ Nerd’s Eye View blog.
An advisor’s first step should be to take a look at their clients’ incomes to see if they qualify to take advantage of the legislation and whether clients can reduce their income to earn the maximum $1,400 recovery rebate check per person, he told viewers.
There are also elements of the legislation pertaining to health insurance and student loans, among other things, that advisors should make sure their clients are aware of.
See the gallery above for 12 top tax takeaways from the new legislation that all advisors and their clients should know about.