It is probably no surprise to you or anyone with a pulse that many companies experienced “workforce fluctuations” in 2020. If your business has turned independent contractors to address staffing needs, you must properly classify them for federal tax purposes. Tax Obligations The question of whether a worker is an independent contractor or an employee for …
Strengthening tax breaks to promote manufacturing in the US received strong bipartisan support at a Senate Finance Committee hearing on March 16. Creating new incentives, and making temporary ones permanent, are particularly critical for helping American competitiveness in semiconductors, batteries and other high-tech products, Senate Banking Chair Ron Wyden (D-Ore) and Ranking Minority Party Member …
Bipartisan Support for Tax Breaks to Promote Manufacturing Read More »
In brief, if you use rewards points to purchase other cash equivalents rather than products or services, the value of the rewards points is taxable. The Tax Court recently ruled that rewards dollars that a married couple earned by using their American Express credit cards to purchase debit cards and money orders—but not to purchase …
Credit Card Rewards Used for Money Order or Debit Card Purchases Are Income Read More »
There’s nothing like having a ton of changes come down right in the middle of tax season! As you’ve already seen, so many things have happened and changed in the last few weeks, that it is nearly impossible to stay on top of them all. As you may have heard (and as we were writing …
The IRS has released information on how corporations can qualify for the new 100% limit for disaster relief contributions, and has offered a temporary waiver of the record keeping requirement for corporations otherwise qualifying for the increased limit. The Taxpayer Certainty and Disaster Tax Relief Act of 2020 (P.L. 116-260) temporarily increased the limit, to …
Increased Deduction Limit for Disaster Relief Cash Contributions by Corporations Read More »
Remote work has convinced many of us that we can do our jobs regardless of where we are located. This new approach is making many think about moving to a new location to be closer to family, enjoy nicer weather or to save money. Additionally, many people facing retirement move to an area with a …
With some areas seeing mail delays, the IRS reminds taxpayers to double-check before filing a tax return to make sure they have all their tax documents, including Form W-2, Wage and Tax Statement, and Forms 1099 and 1099-INT. Many of these forms may be available online, however, when other options are not available, taxpayers who …
Double-Check for Missing, Incorrect Forms Before Filing Read More »
The IRS is providing a safe harbor for eligible educators to deduct certain unreimbursed COVID-19-related expenses. The safe harbor applies to expenses for personal protective equipment, disinfectant, and other supplies used for the prevention of the spread of COVID-19 in the classroom, paid or incurred after March 12, 2020. All amounts remain subject to the …
Teachers Receive Safe Harbor for Certain COVID-related Expenses Read More »
More people worked from home in 2020 than in any previous time due to the COVID-19 pandemic. If you’re one of them, you might be asking, “Can I claim the home office deduction on my 2020 tax return?” Don’t get too excited if you work for someone other than yourself, because the short answer is: …
The IRS has released new Form 7202, Credits for Sick Leave and Family Leave for Certain Self-Employed Individuals. The form allows eligible self-employed individuals to calculate the amount to claim for qualified sick and family leave tax credits under the Families First Coronavirus Response Act (FFCRA) ( P.L. 116-127). They can claim the credits on …
New Form for Self-Employed COVID-19 Leave Credits Read More »
If you’re a parent, or soon will be, you’re no doubt aware of how expensive it is to pay for your child’s food, clothes, activities and education. The federal child tax credit is available to help many taxpayers with children under the age of 17, as well as a dependent credit for those with older children …
You’ve probably heard or read about the Consolidated Appropriations Act (CAA) passed in early January 2021. At over 5,500 pages, the law presents taxpayers and their advisors with much to digest. Whether you’re an individual looking for some financial relief or a business owner striving to keep your company operational and competitive, the provisions in …