2021 is here, which means it’s time to be out with the old and in with the new. The same goes for your taxes! While you will still be paying taxes in 2021, there are some new tax laws in place that might change your tax return.
Tax changes don’t need to be stressful or confusing. AA Tax & Accounting Services, LLC is here to walk you through the tax changes that will be impacting Utah residents in 2021 so you can feel confident as we head into tax season.
2021 Tax Changes for Utah
Although there are a few changes for Utah residents, there aren’t as many tax law adjustments as there have been in previous years. This is because the legislative session was shorter than usual because of the COVID-19 pandemic. Since sessions were shorter, fewer tax changes were put in place on January 1, 2021. While there aren’t many tax changes to be aware of, it’s still important that you have a full understanding of the changes and what they mean for you.
To help you feel more confident in these adjustments, here are two tax changes that will impact Utah residents and how they will impact your tax return.
Utah Excise Tax Changes
An excise tax refers to the taxes placed on manufactured goods that businesses often pay and pass along to the consumer. The taxes are levied when the product is manufactured instead of at the sale of the good because the tax costs are passed along to the consumer, the products’ price increases or decreases according to the current tax rate.
As of January 1, 2021, the state of Utah imposes an excise tax rate of 1.2% on the sale of prepaid wireless telecommunications services.
Other Utah Tax Changes
The excise tax rate isn’t the only change that Utah residents need to be aware of. As of January 1, 2021, individuals can use the revenue from the state’s income and personal property taxes for more than just public or higher education (like they were able to in the past). The allowable use has been expanded to be used for services supporting children and individuals with disabilities.
Tax Consulting Services in Cedar City, Utah
While there were fewer tax changes than usual in 2021 due to the COVID-19 pandemic, the adjustments to tax rules can still be challenging to navigate — especially if you’re dealing with a unique situation. Suppose you’d like to feel confident in how these tax changes affect your taxes. In that case, we recommend consulting certified public accountants like AA Tax & Accounting Services when making any decisions or changes to your tax return.
From one-time tax consulting services to ongoing consulting services, our tax consultants work with many clients as their tax advisor and tax preparer — ensuring that your tax team understands your taxes backward and forwards. You can have peace of mind knowing that our team has the experience to provide you with the most effective strategies for maximizing deductions and tax credits with our tax consulting services.
The AA Tax & Accounting Services team can help you execute the right tax strategies to save you money come tax season. Contact us to schedule an appointment.