It is sad, but when there is a chance to prey on people, there is always someone that takes that opportunity. This time it is a number of scams where fraudsters are using the advance Child Tax Credits to try to steal your personal information and money. (For our latest post on the advance Child …
With so many tax changes taking place over the last few years, it is hard to keep up with everything that is going on. However, this one is worth a reminder since it is only available (for now) during 2021 and 2022. In the Consolidated Appropriations Act of 2021, business meal deductions were increased from …
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 …
There are a lot of questions swirling around about the advance Child Tax Credit, so we wanted to answer a few of them here. If you have further questions, or need help deciding what to do, feel free to reach out to us for input and assistance too. What are advance Child Tax Credit payments? …
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. …
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. …
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. …
Other Rescue Benefits Outside of Stimulus Checks Read More »
Regardless of when your return is filed, and that date keeps moving from year to year it seems, here are three things to keep in mind. You can check on your refund. The IRS has an online tool that can tell you the status of your refund on the IRS website. You’ll need your Social …
Keep These 3 Things in Mind After Filing Your Tax Return Read More »
The IRS recently issued guidance clarifying that amounts paid for personal protective equipment (PPE)—such as masks, hand sanitizer and sanitizing wipes—for the primary purpose of preventing the spread of the COVID-19 are treated as amounts paid for medical care under Code Sec. 213(d). This means that anything you as an individual taxpayer spent for COVID-19 …
Amounts Paid for COVID-19 PPE Are Deductible Medical Expenses Read More »
We’ve written a lot about the PPP loans and tried to keep you abreast of what you need to know about them as new information was available. With the second round of loans running out, and forgiveness issues with the first round, we figured it was time to create another update. First Round PPP Loans …
Many businesses have had to shut down or reduce operations during the COVID-19 pandemic, causing widespread furloughs and layoffs. Fortunately, employers that have managed to keep workers on payroll may be eligible for a refundable employee retention credit. Three laws have created, extended and enhanced the credit. The Original The CARES Act created the employee retention …
Can you Benefit from the Enhanced Employee Retention Credit? Read More »
Whether you’ve filed your 2020 tax return or soon will, you don’t want any surprises. One thing that often takes many older people by surprise is getting taxed on their Social Security benefits. Will You Be Taxed & How Much Will You Have to Pay? The amount of tax depends on your other income. If …