Eastern Iowa Farmer Fall 2021

Tax changes
they must report the amount of the advance recovery rebate credit
payment they received. If they did not receive the full amount
to which they were entitled, they can receive the difference as a
refund on their return. If they received more than they were entitled
to receive, they are not required to repay the difference. These
differences may arise because the IRS based the advance payment
upon 2020 information, but the actual credit is calculated based
upon 2021 information. For example, if a single farmer had $60,000
of income in 2020, the IRS would have sent that farmer a $1,400
payment in early 2021. If that farmer turns out to have income of
$80,000 on his 2021 return, he is not eligible for the recovery rebate
credit because his income is too high. Even so, the law does not
require the farmer to repay the difference.
Increased Premium Tax Credits for Insurance
Purchased on the Marketplace
The Rescue Plan also significantly enhanced the availability of
the Affordable Care Act’s premium tax credit (PTC) for 2021 and
2022. This credit was designed to make healthcare acquired on the
ACA’s Health Insurance Marketplace more affordable. Because
many farmers and ranchers are self-employed or owners of small
partnerships or corporations for which insurance plans may be costly,
they may benefit from purchasing insurance on the marketplace.
The ACA created the refundable PTC for those taxpayers purchasing
insurance on the ACA Marketplace with household income
generally between 100% and 400% of the federal poverty level. To
qualify for the benefit, the taxpayer may not be eligible for affordable
For your farm appraisal needs,
call Ken Kruger!
Independent Licensed
MeMber of
Certified General Appraiser
—— Appraising farms in Eastern Iowa since 2004 ——
563-349-3150 • DeWitt, Iowa
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