Bailey Scarano Blog

sick leave tax credits

Business Owners Can Claim Tax Credits for Employee Sick Leave

Under the American Rescue Plan Act of 2021 (ARP) ( P.L. 117-2), small and midsize employers and certain government employers are entitled to claim refundable tax credits that reimburse them for the cost of providing paid sick and family leave to their employees due to COVID-19. Keep in mind this also includes leave taken by …

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Advance Child Tax Credit Payments

Advance Child Tax Credit Update & Why You May Want to Opt Out

The IRS has started sending letters to over 36 million families who, based on tax returns filed, became eligible to receive monthly child tax credit payments starting July 15. Eligibility is evaluated based the information you provided in your 2019 or 2020 tax returns, or through the Non-Filers tool while registering for an Economic Impact …

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IRS Answers ARP Questions

The IRS Answers American Rescue Plan Tax Credit Questions

The IRS recently answered some of the most frequently-asked-questions from families and small and mid-sized employers about claiming credits under the American Rescue Plan (ARP). These FAQs provide information on eligibility, computing the credit amounts and how to claim these important tax benefits. Enacted in March to assist families and small businesses with the fallout …

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Starting a New Business? Know Your Tax Rules!

With the economy improving now and in the months or quarters ahead, many business owners and entrepreneurs may decide to launch new enterprises. If you’re among them, be aware that the way you handle some of your initial expenses can make a large difference in your tax bill. General rules Start-up costs include those incurred or …

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IRS Investment

Treasury Encourages More IRS Investment

The Treasury Department recently released a statement discussing investment in the IRS and improving tax compliance. While roughly 99 percent of the taxes due on wages are remitted to the IRS, compliance on other forms of income is substantially less, because the IRS has had difficulty verifying whether income from unverified sources is properly reported. …

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Refund for unemployment tax

Unemployment Tax Refunds on the Way

The IRS announced that it had started issuing refunds to eligible taxpayers who paid taxes on 2020 unemployment compensation that was excluded from taxable income by the recently enacted American Rescue Plan. Keep in mind that unemployment compensation is taxable, but the ARP excludes $10,200 in unemployment compensation when calculating the amount of taxes owed. …

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Other Rescue Benefits Outside of Stimulus Checks

When you think back on this spring, you may recall a deposit to your bank account by the federal government (if you were eligible). Economic Impact Payments were a focal point of the American Rescue Plan Act (ARPA), but it contains many other provisions also worth remembering. Here are five highlights: The child tax credit. …

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