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. […]
Unemployment Tax Refunds on the Way Read More »
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
PPP Loan Updates and Latest News Read More »
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
Remember: Social Security is Taxable Read More »
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
How Workers are Classified is Important Read More »
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 »