Since everyone liked the comparison last week here is another one for this week.
Quick comparison of Tax Changes for 2016 Obama/Biden to 2019 Trump/Pence on a Single Parent making $24,000 on a W-2 with 2 children under the age of 17. Under the Trump/Pence Tax Plan that family gets $1,489 more. That is a 6.2% of their income they get back.
Quick comparison of Tax Changes for 2016 Obama/Biden to 2019 Trump/Pence on a Single Parent making $40,000 on a W-2 with 2 children under the age of 17. Under the Trump/Pence Tax Plan that family gets $2,232 more. That is a 5.5% of their income they get back.
If the 843-672-1040 is busy try the 980-269-8350 and choose option 1 to get the Pageland Office.
Our office will be closed today July 3, 2020 to observe the 4th of July Holiday. We will reopen on Monday. Thank you.
Looks like the goal post on the Forgiveness of your PPP Loan are going to be lowered, BUT the Senate still has to agree. Also some of the First Round Borrowers, their 8 weeks is going to be over this week.
The Paycheck Protection Program (PPP) Flexibility Act of 2020 (H.R. 7010)
The House has passed the Paycheck Protection Program (PPP) Flexibility Act of 2020 (H.R. 7010) which provides more flexibility for participants in the PPP program, including allowing those participants to defer the payment of certain payroll taxes that the CARES Act prevented them from deferring.
The vote was 417-1.
Deferral of tax payment. The CARES Act (P.L. 116-136, the Act) contains a provision, Act Sec. 2302, that defers the payment of 50% of certain payroll taxes until Dec. 31, 2021 and defers payment of the remaining 50% until Dec. 31, 2022. The Act provides an exception to the above rule; under that exception, these deferrals don't apply to any taxpayer which has had indebtedness forgiven under Act Sec. 1106 with respect to a loan under Small Business Act Sec. 7(a)(36), as added by Act Sec. 1102, or indebtedness forgiven under Act Sec. 1109.
H.R. 7010 would eliminate the above exception and thus would allow taxpayers with these forgiven loans to defer payment of the payroll taxes.
Summary of other provisions. H.R. 7010 also would:
Allow businesses 24 weeks instead of eight weeks to use the loan money;
Eliminate restrictions limiting non-payroll expenses to 25% of loan proceeds;
Require loan recipients to comply with COVID-19 safety standards;
Eliminate restrictions that limit loan terms to two years; and
Extend the rehiring deadline.
References: For CARES Act deferral of payroll taxes, see FTC 2d/FIN ¶S-5501.1; United States Tax Reporter ¶63,024.
The up to $10k Advance from the SBA is out of Money and a lot of Banks are not accepting anymore applications from their customers for the PPP (Paycheck Protection Program) Loan.
NC & SC have both extended the 2021 Tax Filing Deadline to May 17th.
The IRS has announced that the 2020 Tax Filing Deadline is now May 17th. This is just for the Federal return at this time. We are waiting to hear what the states will do.
New Tax Law Change. They added a deduction for some taxpayers that received Unemployment in 2020. This means all returns with Unemployment need to be delayed so the IRS can get this new deduction in the system and if you have already filed your return it appears you will need to amend that return to take advantage of this deduction. All thanks to Covid-19 the cold that want stop giving.
Anderson Certified Public Accountant, PC updated their business hours.
The IRS will start to electronically process Individual returns on February 12. We can prepare your return now, and file it when the IRS is ready to get started.
The IRS has announced they will start electronically processing individual tax returns on February 12. This is the latest start I have ever seen.
