Today is Tax Day. Under President Joe Biden's COVID-19 relief bill, there are new deductions and perks for filers, according to Yahoo Finance.
Four things to know:
- Under the bill, any medical expenses above 7.5 percent of a person's adjusted gross income can be claimed on tax forms. Prior to the bill, what could be claimed was capped at 10 percent.
- Those accessing health coverage through COBRA due to recent job loss will have their premiums paid by the government from April through September. This does not apply to those with Medicare coverage, those who voluntarily left their jobs or those who have new employer-based coverage.
- People who do not have coverage through an employer or CMS and choose to purchase coverage from an Affordable Care Act marketplace can now cap their premiums at 8.5 percent of their income.
- Those who have the ability to invest pre-tax funds in a flexible spending account through their employers will now have access to higher spending limits. Those with self-only coverage can save up to $3,650 in a health savings account, while those with family coverage can save $7,300; a $50 and $100 increase, according to Yahoo Finance.