In an announcement, the IRS stated that lenders who make Paycheck Protection Program loans that are later forgiven under the CARES Act shouldn’t file Form 1099-C #ppploanforgiveness https://bit.ly/3l0Vuzk
Do your employees travel for business within the continental United States? If so, be advised that the IRS recently released new per diem rates that will apply beginning on October 1st. #perdiem https://bit.ly/34fk7Bg
Final guidance is available for decedent’s estates and non-grantor trusts on the treatment of certain deductions. https://bit.ly/3iZ0OT3
How does the tax code define “dependent” for tax purposes? The IRS has finalized the definition based on changes brought by the Tax Cuts and Jobs Act (TCJA) #TCJA https://bit.ly/33NxxEA
Taxpayers have the right to know what they need to do to comply with the tax laws. #IRS https://bit.ly/3hWE4Sq
Every business depends on strong sales to keep the dollars flowing and the company growing. Here’s a methodical approach to winning over prospects. #Sales https://bit.ly/3d9XMt6
Have some of your records been destroyed in a disaster? Records can help people prove their disaster-related losses. https://bit.ly/3cHSuVB
New vehicles are now available for a tax break. On its website, the IRS has added several 2021 model year Honda and Volvo vehicles to the list of vehicles eligible for the plug-in electric drive motor vehicle tax credit. https://bit.ly/3cHSuVB
The tax rules for treating computer software costs can be complex. Here’s a basic explanation. #deduction https://bit.ly/3nfo8yC
The COVID-19 crisis has put an increased emphasis on mobile business technology. Make sure yours is well-protected. #CyberSecurity. https://bit.ly/3l4ZBdp
You have the right to know the IRS’s timeline for, or finality of, certain interactions with you. You have the right to know: the maximum amount of time you have to challenge the IRS position if you’re under audit; the maximum amount of time the IRS has to audit a tax year or collect a tax debt; and when the IRS has completed an audit. https://bit.ly/3lNmwuh
The passive activity loss rules can be complex and trip up some taxpayers. Here are the rules. https://bit.ly/37jdjpN
One unfortunate fallout of the COVID-19 pandemic is that some businesses are closing permanently. If you’re considering a closure, be prepared to address several issues, along with your tax advisor. https://bit.ly/3dvspcO
The deadline for various tax-related actions is almost here. Oct. 15, 2020 is the deadline for filing several types of 2019 income tax returns that were extended. #taxes https://bit.ly/2H4GcLi
Getting a letter from the IRS that your tax return is being audited may strike fear into the hearts of business owners. But the more you know about IRS audits, the better you can fare. #IRS https://bit.ly/2IakBS5
Employees pay Social Security tax on their wages up to the current tax year’s “wage base.” The Social Security Administration just announced the base amount for 2021. https://bit.ly/34dOtFE
BUSINESS.RICHARDSONCHAMBER.COM
33rd Annual Golf Classic - Oct. 27
Richardson Chamber of Commerce
October 19 at 6:44 PM ·
Don't "fore-get" to register for the Richardson Chamber Golf Classic, next Tuesday, Oct. 27 at Canyon Creek Country Club.
Enjoy the great outdoors: food, drinks, contests, raffle prizes and an outdoor awards presentation and networking happy hour.
Registration closes this week: https://business.richardsonchamber.com/events/details/33rd-annual-golf-classic-oct-27-8579?calendarMonth=2020-10-01
Thanks to Golf Classic sponsors: Fobare Commercial Blue Cross and Blue Shield of Texas Digital Realty Methodist Richardson Medical Center US Freedom Capital KDC Real Estate Development & Investments Alliance Architects ProNail Roofing and Construction Frost City of Richardson The Wing'd Nut Bland Garvey Wealth Advisors, LLC Hill & Wilkinson General Contractors
Richardson Chamber of Commerce
October 19 at 6:44 PM ·
Don't "fore-get" to register for the Richardson Chamber Golf Classic, next Tuesday, Oct. 27 at Canyon Creek Country Club.
Enjoy the great outdoors: food, drinks, contests, raffle prizes and an outdoor awards presentation and networking happy hour.
Registration closes this week: https://business.richardsonchamber.com/events/details/33rd-annual-golf-classic-oct-27-8579?calendarMonth=2020-10-01
Thanks to Golf Classic sponsors: Fobare Commercial Blue Cross and Blue Shield of Texas Digital Realty Methodist Richardson Medical Center US Freedom Capital KDC Real Estate Development & Investments Alliance Architects ProNail Roofing and Construction Frost City of Richardson The Wing'd Nut Bland Garvey Wealth Advisors, LLC Hill & Wilkinson General Contractors
Don't "fore-get" to register for the Richardson Chamber Golf Classic, next Tuesday, Oct. 27 at Canyon Creek Country Club. Enjoy the great outdoors: food, drinks, contests, raffle prizes and an outdoor awards presentation and networking happy hour. Registration closes this week: https://bit.ly/2IBBVPZ Thanks to Golf Classic sponsors: Fobare Commercial Blue Cross and Blue Shield of Texas Digital Realty Methodist Richardson Medical Center US Freedom Capital KDC Real Estate Development & Investments Alliance Architects ProNail Roofing and Construction Frost City of Richardson The Wing'd Nut Bland Garvey Wealth Advisors, LLC Hill & Wilkinson General Contractors
Business owners: Have you paused to consider how well your company initially responded to the COVID-19 pandemic? Update your disaster plan before the details fade. https://bit.ly/2IwUIMr
Businesses have long been required to properly track payroll records. The urgency and complexity of this task has grown because of the pandemic. #payroll https://bit.ly/34BC1j8
Bland Garvey is a proud sponsor of the Richardson Edge Awards
Richardson Chamber of Commerce
22 hrs ·
The Richardson EDGE Awards go virtual: Thursday, Nov. 12
EDGE is the Economic Development, Growth & Expansion initiative of the Richardson Economic Development Partnership (REDP).
Each year, REDP, the Richardson Chamber and Richardson Rotary Clubs recognize the companies and organizations that have achieved extraordinary success or made a significant investment in Richardson, Texas.
Congratulations to 2020 award recipients Wynne/Jackson, State Farm, Network of Community Ministries (NETWORK), Theatro, Spring Creek Nature Area Team, Kirin Court Restaurant, Infinera, Spear Street Capital, and ETC (Electronic Transaction Consultants).
Join us in honoring them at this virtual event. Register at: https://business.richardsonchamber.com/events/details/richardson-edge-awards-nov-12-8032
Thank you to EDGE 2020 Community Sponsors: City of Richardson, Methodist Richardson Medical Center, GEICO, Logotology, Alliance, Bland Garvey Wealth Advisors, LLC, Texas Bank and Trust and Susan Kassen, Ebby Halliday.
Entrepreneurs: Don’t ignore saving for retirement. Here are the basics of tax-favored plans to help build your nest egg. #retirement https://bit.ly/2HIyiHC
The IRS has announced the 2021 annual inflation-adjusted amounts for retirement plans. The limit on contributions by employees who participate in 401(k), 403(b), most 457 plans and the federal Thrift Savings Plan will remain unchanged at $19,500. The catch-up contribution limit for employees aged 50 and over who participate in these plans will remain $6,500. The limit on annual IRA contributions will remain $6,000. The additional catch-up contribution limit for individuals aged 50 and over will remain $1,000. However, the income ranges for determining eligibility to make deductible contributions to traditional IRAs, to contribute to Roth IRAs and to claim the Saver’s Credit will increase for 2021. #retirement
Business owners, as you grapple with the economic impact of COVID-19, don’t overlook the importance of sound inventory management. #inventory https://bit.ly/35FHXae
The IRS has issued the 2021 marginal income tax rates. The top tax rate remains 37% for single taxpayers with incomes greater than $523,600 ($628,300 for married couples filing jointly). The other rates are: 35%, for incomes over $209,425 ($418,850 for married couples filing jointly); 32% for incomes over $164,925 ($329,850 for married couples filing jointly); 24% for incomes over $86,375 ($172,750 for married couples filing jointly); 22% for incomes over $40,525 ($81,050 for married couples filing jointly); 12% for incomes over $9,950 ($19,900 for married couples filing jointly); and 10% for incomes of $9,950 or less ($19,900 for married couples filing jointly). #taxes
Business owners, have you thought about sending employees a fake email just to see if they’d fall for a phishing scam? It’s a growing, though controversial, practice. #phishing https://bit.ly/32wK9jB
Honoring Veterans and the Sacrifices They Make
Are you the owner of a closely held corporation and want to take cash out? For tax purposes, you probably want to avoid a dividend distribution. Here are some alternatives. #tax https://bit.ly/3n9dzMz
How should employers treat “vacation buy back” for tax withholding purposes? Some companies are offering employees the option of “cashing in” accrued vacation time because many are working remotely due to COVID-19. For payroll purposes, employers should treat the payments as regular wages. Whether the vacation leave is taken or not, the wages are subject to federal income tax withholding, FICA and federal unemployment tax. Employers that offer employees the option of “cashing in” accrued leave must report the value of the leave as income when it’s earned and made available, not when the checks are issued to employees. Contact us if you need assistance.
Health Savings Accounts offer a way to set aside money on a pre-tax basis to pay for qualified medical expenses. Here’s a review at what an HSA could mean for your business, as well as the relevant inflation-adjusted amounts for 2020 and 2021. #HSA Read More
YOUTUBE.COM
EDGE 2020 Theatro with sponsor Bland Garvey
Do you operate your business as an S corporation? Be aware that several elections are available to an S corp. or its shareholders that can affect the basis adjustments caused by distributions and other events. #Corporate https://bit.ly/39jzRr4
There is always a degree of uncertainty at the end of the year that affects tax planning. Laura Zerger reviews planning opportunities should be considered. #taxes https://bit.ly/360UgiT
A new report says “urgent actions” are needed by the IRS for COVID-related tax relief. #Relief https://bit.ly/3n0APwr
Before Dec. 31, your business should buy any needed business assets and place them in service. That way, you can take advantage of the Section 179 deduction and bonus depreciation. https://bit.ly/2I198Ve
Has the COVID-19 pandemic wrought difficult changes on your business? If so, be sure to make the most of what you’ve learned by engaging in change management. https://bit.ly/2VqTGEN
By now, some businesses have completed their 2021 budgets while others are still crunching the numbers. As you put the finishing touches on your company’s spending plan for next year, be sure you’ve covered the finer points of the process. #Budget2021 Read More
In a Revenue Ruling, the IRS clarified when a taxpayer that received a Paycheck Protection Program (PPP) loan may deduct otherwise deductible expenses if, at the end of the tax year, the taxpayer expects to receive forgiveness of the covered loan based on the otherwise deductible expenses. https://bit.ly/361DNuB
Family-owned businesses face distinctive challenges in today’s uncertain economy. One example is how to best integrate your succession plan with your estate plan. #estateplanning https://bit.ly/36TKob4
With federal income tax fraud continuing to be an issue, the IRS has expanded its Identity Protection (IP) PIN Opt-In program to taxpayers nationwide. #IDENTITY https://bit.ly/3oAlhQB
National Tax Security Awareness Week ends Dec. 4, but the IRS and its security partners urge taxpayers to remain vigilant. #scams https://bit.ly/3gqVc3y
IRS.GOV
Form W2 SSN Data Theft Information for Businesses and Payroll Service Providers | Internal Revenue Service
Some taxpayers may be able to achieve significant savings with the QBI deduction by taking certain steps at year end. #taxes https://bit.ly/3m2xTy1
With 2020 wrapping up the focus shifts to the PPP loan forgiveness process and related tax planning issues. Here’s a quick look at what you need to know about PPP before year-end. #ppp2020 #taxes https://bit.ly/33S3WKQ
Here’s good news for some people when they file their 2020 tax returns in 2021. A Recovery Rebate Credit is available to taxpayers who didn’t receive an Economic Impact Payment (EIP) in 2020. #Credit https://bit.ly/3p0ARoZ
Taxpayers with student loan debt get more relief. Collection actions and wage garnishments were first suspended as of March 13, 2020 when President Trump declared a national emergency due to COVID-19. The suspension was to expire Dec. 31. #studentloans https://bit.ly/3nnccdL
There are substantial tax breaks when you buy a heavy SUV for business. Here are the details if you’re purchasing new wheels before year end. #tax https://bit.ly/3qVXo82
Beware of a new text message scam, warns the IRS and its security partners. The COVID-19-related scam tells unwary taxpayers that they qualify for a $1,200 Economic Impact Payment. #SCAM https://bit.ly/2IRYlgz
The IRS is reminding employers that they must file Form W-2 and other wage statements by Feb. 1, 2021, to avoid penalties and help the IRS prevent fraud.https://bit.ly/2K5pfl4
If you haven’t yet thought about your 2020 taxes, or considered your 2021 tax situation, don’t delay having a conversation with us. https://bit.ly/38q3qW4
12/21/2020 the U.S. Senate and House of Representatives passed a $900 billion COVID Relief Bill. The measure now goes to President Trump, who is expected to sign it into law. How will it affect PPP Loans and taxes? https://bit.ly/2KlwDJX
The SECURE Act increased the maximum amount of an employee’s compensation, from a 10% cap to a 15% cap, which can be automatically deferred to an employer’s 401(k) plan after the employee’s first plan year. #retirement https://bit.ly/37jlMZl
Few businesses can survive in today’s uncertain, competitive environment without using technology effectively. Now may be the right time to explore adding an IT executive. #hiring https://bit.ly/3oSrMyj
Here’s good news for some people when they file their 2020 tax returns in 2021. A Recovery Rebate Credit is available to taxpayers who didn’t receive an Economic Impact Payment (EIP) in 2020. #Credit https://bit.ly/3p0ARoZ
Businesses face a variety of tax-related deadlines in the first quarter of 2021. Here are some of them. https://bit.ly/3rqjekr
The IRS announced that the U.S. Centers for Medicare & Medicaid Services (CMS), which verifies if an individual is eligible for payment of the advance premium tax credit (APTC), is deferring the verification process until early 2021. https://bit.ly/2Jeaix6
Are you in the market for a new plug-in electric vehicle? If so, the IRS has recently added several new vehicles eligible for the plug-in electric drive motor vehicle credit. https://bit.ly/37JBJsf
Is your company’s sales staff too big, too small or just right? Answering this question is a matter of careful calculations and considerations. https://bit.ly/3nLiLqJ
Could your small business use another cash infusion from the Paycheck Protection Program? The new COVID-19 relief law makes this a distinct possibility if you qualify. #PPP https://bit.ly/3osjWeX
Tax errors can be costly for small businesses. Accidentally failing to comply with tax laws, violating tax codes, or filling out forms incorrectly can leave taxpayers and their businesses open to possible penalties. https://bit.ly/3poazgx
Every business needs a solid strategic plan for the challenging and perhaps promising year ahead. The Balanced Scorecard approach could help strengthen yours. https://bit.ly/3aJ1x9T
Businesses face a variety of tax-related deadlines in the first quarter of 2021. Here are some of them. https://bit.ly/3rqjekr
The IRS announced that the U.S. Centers for Medicare & Medicaid Services (CMS), which verifies if an individual is eligible for payment of the advance premium tax credit (APTC), is deferring the verification process until early 2021. https://bit.ly/2Jeaix6
A valuable employer tax credit is extended, but modified, for 2021. Under the Families First Act, certain employers were obligated to provide paid sick and family leave to employees affected by COVID-19 https://bit.ly/38lJbK9
Businesses received several favorable tax breaks in the COVID-19 relief bill that was recently signed into law. Here are just two of them. #deductions #ppp https://bit.ly/2Xmm3VP
Are you reconsidering the choice of entity for your business? These are several factors to consider when converting from a C corporation to an S corporation. Here are four of them. https://bit.ly/2Xjst83
Most of us are ready to turn the page on 2020. If you’re a business owner, after the confetti clears in 2021, make sure everyone at your company is thinking about ways to build the bottom line. #ideas https://bit.ly/35lDhHb
The IRS has updated its “Get My Payment” tool, which answers questions about eligibility and allows you to provide the IRS with information it needs to issue an Economic Impact Payment. #EIP
Could your small business use another cash infusion from the Paycheck Protection Program? The new COVID-19 relief law makes this a distinct possibility if you qualify. #PPP https://bit.ly/3osjWeX
The IRS has issued the 2021 standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes. https://bit.ly/2LuInde
For 2020, individuals who don’t itemize deductions could take up to a $300 above-the-line deduction for cash contributions to qualified charitable organizations. The Consolidated Appropriations Act (CAA) extends this deduction through 2021. #tax https://bit.ly/3i3oxlD
A valuable employer tax credit is extended, but modified, for 2021. Under the Families First Act, certain employers were obligated to provide paid sick and family leave to employees affected by COVID-19 https://bit.ly/38lJbK9
Businesses received several favorable tax breaks in the COVID-19 relief bill that was recently signed into law. Here are just two of them. #deductions #ppp https://bit.ly/2Xmm3VP
Are you reconsidering the choice of entity for your business? These are several factors to consider when converting from a C corporation to an S corporation. Here are four of them. https://bit.ly/2Xjst83
Most of us are ready to turn the page on 2020. If you’re a business owner, after the confetti clears in 2021, make sure everyone at your company is thinking about ways to build the bottom line. #ideas https://bit.ly/35lDhHb
Businesses that generally report payments to workers on Forms 1099-MISC will need to adapt. Beginning with the 2020 tax year, payments of at least $600 made for services performed by a non-employee must be reported on the new Form 1099-NEC (Nonemployee Compensation). https://bit.ly/2NjMn14
About 8 million second Economic Impact Payments (EIPs) are being sent to taxpayers via prepaid debit card this week, according to the IRS. #EIP https://bit.ly/35VmNG3
The CAA includes a provision that removes the 50% limit on deducting eligible business meals in 2021 and 2022. In general, the ordinary and necessary food and beverage expenses of operating a business are deductible. The new law allows https://bit.ly/3o2K5zY
Businesses that have been hit hard by the COVID-19 may be able to obtain help with PPP loans. Here are the basic rules, as well as the tax implications. #PPP #tax https://bit.ly/2NlPtld
The Employee Retention Credit has been extended. To encourage businesses to maintain their workforces, the CARES Act created the Employee Retention Credit, a refundable credit against payroll tax for employers meeting certain requirements. #tax https://bit.ly/39LasFp
The IRS has issued the 2021 standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes. https://bit.ly/2LuInde
Did you know that eight out of 10 taxpayers receive their income tax refunds using direct deposit? The reason, according to the IRS, is that filing electronically and choosing direct deposit is the fastest way to receive a refund. In fact, the IRS uses the same electronic transfer system to deposit tax refunds that’s used by other federal agencies to deposit nearly 98% of all Social Security and Veterans Affairs benefits into millions of accounts. Also, direct deposit avoids the possibility that a refund check could be lost or stolen. For more information, contact us or visit: https://bit.ly/3a42Az3
How do you perform financial statement audits during a pandemic? Lessons learned on adaptability and flexibility. #Audit https://bit.ly/2YulHNz
Do you have questions regarding your eligibility for the second round of economic impact payments (EIPs)? These payments are being sent to help mitigate the financial effects of COVID-19. The IRS recently issued a series of FAQs on this topic. #EIP https://bit.ly/3isNB5r
A filing requirement is coming up if your business pays independent contractors or makes other payments. #1099 https://bit.ly/2MadECG
Eligible K-12 teachers and instructors are entitled to up to $250 annually in an “above-the-line deduction” for certain school-related expenses paid out of their own pockets. Thanks to the new CAA, the list of qualified deductible items has expanded. https://bit.ly/39O9Q20
Your business might not need to use blockchain just yet. However, this technology may soon play a greater role in many industries. #blockchain https://bit.ly/3bV0Pa8
The Employee Retention Credit (ERC) is extended for employers who keep workers on payroll. The recently enacted Consolidated Appropriations Act made several changes to the tax credit, which was created under the CARES Act. This includes modifying and extending it through June 30, 2021. For the first 2 quarters of 2021, eligible employers can claim a refundable tax credit against the employer share of Social Security tax equal to 70% of qualified wages they pay to employees after Dec. 31, 2020, through June 30, 2021 (limited to $10,000 of qualified wages per employee per calendar quarter). So the maximum ERC amount available is $7,000 per employee per quarter, for a total of $14,000 in 2021.
Business owners, do you get a little bleary-eyed looking at your financial statements? The right KPIs can help you see things more clearly. #kpi #Financial https://bit.ly/3apUBwy
The IRS announced that tax season will start on Feb. 12, 2021. That’s when the tax agency will begin accepting and processing 2020 individual income tax year returns. It is later than in past years. The IRS stated that the start date will allow time to do additional programming and testing of systems following the Dec. 27 tax law changes that provided a second round of Economic Impact Payments and other benefits. Overall, the IRS anticipates most taxpayers will receive their refunds within 21 days of if they file electronically with direct deposit. We can begin preparing your return as soon as you receive all the necessary information.
What should you do if you think you’ve been the victim of tax-related identity theft? The IRS has a form to file for that. The “Identity Theft Affidavit” (https://bit.ly/3o6BgVN ) is for taxpayers who suspect identity theft. For example, taxpayers file the form if their tax preparers couldn’t e-file their tax returns because returns using their Social Security Numbers had already been filed. Or, let’s say that you’ve been the victim of nontax identity theft and you want the IRS to flag your tax account because you fear it could be compromised. Contact us; we can help.
As your business forges ahead into 2021, make sure your marketing dollars will go as far as possible in today’s challenging environment. https://bit.ly/3sSABee
Did you know that eight out of 10 taxpayers receive their income tax refunds using direct deposit? The reason, according to the IRS, is that filing electronically and choosing direct deposit is the fastest way to receive a refund. In fact, the IRS uses the same electronic transfer system to deposit tax refunds that’s used by other federal agencies to deposit nearly 98% of all Social Security and Veterans Affairs benefits into millions of accounts. Also, direct deposit avoids the possibility that a refund check could be lost or stolen. For more information, contact us or visit: https://bit.ly/3a42Az3
The U.S. Department of Justice (DOJ) and the IRS’s Criminal Investigation division are warning taxpayers about a new wave of COVID-19-related scams. Officials with the DOJ and IRS spotlighted a number of scams, including: text messages asking taxpayers to disclose bank account information under the guise of receiving Economic Impact Payments; phishing schemes using email and social media messages with key words such as “COVID-19,” and “stimulus” in varying ways, with the aim of gaining access to personal identifying information and financial account information; and bogus opportunities to invest in companies developing COVID-19 vaccines. For more information: http://bit.ly/39Wbgsp
Richardson Chamber of Commerce
February 4 at 5:33 PM ·
Returning to the office with confidence
Wednesday, Feb 17, 10:00 CT
Join us for a Growth & Mobility virtual discussion on making the office safe for a return to work, featuring Dr. Michael Gao, Co-founder and CEO of Haven Diagnostics.
Register at:
https://business.richardsonchamber.com/events/details/growth-and-mobility-feb-17-8625?calendarMonth=2021-02-01
Event sponsor: Texas Bank and Trust
A number of tax-related limits affecting businesses are annually indexed for inflation, and many have increased for 2021. For example, the Section 179 expensing limit has gone up to $1.05 million from $1.04 million for 2020. Health Savings Account (HSA) contributions for individual coverage have increased to $3,600 (from $3,550). HSA family coverage contributions increased $100 to $7,200. Some 2021 amounts have stayed the same due to low inflation. This includes employee contributions to 401(k) plans, which remain $19,500. And the deduction for business-related meals and beverages doubled from 50% to 100% due to a new law. We can answer any questions you have about taxes and your business. https://bit.ly/36VrJeI
The Consolidated Appropriations Act (CAA), enacted on Dec. 27, 2020, allows corporations to deduct up to 100% of taxable income for charitable contributions for disaster relief. The IRS recently offered more details on requirements for the temporary deduction: 1) Qualified contributions must be paid by a corporation from Jan. 1, 2020, through Feb. 25, 2021; 2) cash contributions to most charitable organizations qualify for the increased limit; 3) “qualified disaster areas” don’t include declarations related to COVID-19; and 4) contributions made to a supporting organization or to establish or maintain a donor-advised fund don’t qualify. Contact us for more information. (IR 2021-27)
The price of gas is down from a year ago. How does this affect the amount your business can deduct for business driving in 2021? #deduction https://bit.ly/3avIHRC
A new year can bring a fresh start, including for your tax situation. That’s why the IRS is reminding people to check their 2021 withholding by using the IRS Tax Withholding Estimator online tool. Employees can avoid penalties by ensuring they’re having enough tax withheld, but also keep more cash in their pockets by not over withholding. To adjust withholding, employees should submit a new Form W-4 (Withholding Allowance Certificate) to their employers. Self-employed persons can also avoid underpayment penalties by using the tool to check the accuracy of their estimated tax payments and adjust if necessary. Here’s more information, including a link to the Estimator: https://bit.ly/3a8IJ1M
02/17/2021 The Bland Garvey office continues to be closed due to inclement weather. Contact your accountant or wealth advisor by email. Power outages may delay their response.
Are you self-employed and a survivor of COVID-19? If so, you may be able to claim a sick and family leave tax credit under the Families First Coronavirus Response Act. The law allows certain self-employed individuals, who due to COVID-19 were unable to work or telework for reasons related to their health, to claim the refundable credit to offset their federal income tax. The credit also applies to those unable to work or telework due to caring for a child with COVID-19. To claim the credit (up to $5,110) for 2020, the leave must have been taken between April 1, 2020, and Dec. 31, 2020. We’ll help determine your eligibility and file a form to claim the credit when we prepare your return.
Buying or selling a business may be the largest transaction you’ll ever make. Pay attention to taxes. After a deal is done, it may be too late to get the best tax results. #Buying #tax https://bit.ly/3u7DZmm
As tax season kicks off on Feb. 12, 2021, the IRS wants to remind taxpayers of some points they might miss. For example, taxpayers who received interest income (of at least $10) from the IRS will be sent a Form 1099-INT, which must be reported on the 2020 tax return. Many received this income related to last year’s delayed filing deadline (to July 15, 2020, related to COVID-19). Generally, taxpayers who claim the standard deductions on their federal tax returns can’t deduct charitable donations. But thanks to the CARES Act, taxpayers can deduct up to $300 in donations to qualified charities on their 2020 federal returns, even if they claim the standard deduction.
The COVID-19 pandemic has emphasized the importance of business leadership at every level, including supervisors. Today’s supervisors need to develop flexible styles when dealing with multiple generations. Younger employees (Millennials and Generation Z) tend to have different needs and expectations than older ones (Baby Boomers and Generation X). Although financial security is highly valued by every generation, Millennials and Gen Z may more highly prioritize a well-rounded benefits package, especially mental health benefits. Supervisors should encourage and guide employees to optimally use their benefits. We can help you develop cost-effective strategies for upskilling your supervisors. https://bit.ly/2LBoku3
IRS extends April 15 and other upcoming deadlines, provides other tax relief for victims of Texas winter storms https://bit.ly/37IgMxc
IRS.GOV
Victims of Texas winter storms get deadline extensions and other tax relief | Internal Revenue Service
Whether your business is striving to hold steady or gain ground this year, a SWOT analysis can provide valuable insights. #SWOT https://bit.ly/3bfPHCN
Do you have a child age 17 or older or other dependent? You can’t claim the Child Tax Credit for these individuals but you may qualify for the Credit for Other Dependents. The maximum credit is $500 for each dependent who meets certain conditions. For example, the person can be: 1) a dependent age 17 or older (such as a college student), 2) a parent or other qualifying relative supported by you, or 3) a dependent who lives with you but isn’t related. The credit begins to phase out when modified adjusted gross income is more than $200,000. For married couples filing jointly, the phaseout begins at $400,000. We can discuss your eligibility for the credit when we prepare your taxes.
Bland Garvey, P.C. updated their business hours.
New Ford and Porsche models join the ranks of plug-in vehicles available for a lucrative tax break. Buyers of certain electric passenger vehicles and light trucks can claim a credit for up to $7,500. The models added by the IRS to the list of qualifying vehicles are the 2021 Ford Escape Plug-in Hybrid ($6,843 credit) and these 2021 Porsche models: Taycan 4S EV, Taycan Turbo EV and Taycan Turbo S EV ($7,500 credit for any of these Porsche models). The credit is nonrefundable (meaning you can only get a refund up to the tax you owe). The credit availability begins phasing out after a manufacturer has sold at least 200,000 qualifying vehicles in the United States. Contact us with questions.
The Bland Garvey office is open.
Business owners may be able to save tax with home office deductions. If you’re working from home (like lots of people these days), you may qualify. Here’s a rundown of the rules. #homeoffice #taxes https://bit.ly/3dFym8Q
SBA Prioritizes Smallest of Small Businesses in the Paycheck Protection Program #PPP https://bit.ly/2ZKtG9y
SBA.GOV
SBA Prioritizes Smallest of Small Businesses in the Paycheck Protection Program
Flexible Spending Accounts (FSAs) for dependent care are a tax-favored way to pay certain expenses, but rules apply. Employees may redeem these FSA funds only as reimbursements for qualified dependent care. The costs must be incurred within time limits, and unused funds must be forfeited. In light of COVID-19, some FSA rules have been eased, but not all. When one taxpayer was unable to use up his dependent care funds due to COVID-19, he asked to have the funds paid to him. However, IRS Information Letter 2020-0027 notes that employers are restricted from returning FSA dependent care funds except as reimbursement of employment-related dependent care expenses. Contact us with questions.
In Notice 2021-20, the IRS provides guidance on claiming the employee retention tax credit for calendar quarters in 2020. The guidance clarifies details about the credit and describes retroactive changes made under a law enacted recently. Among other things, the guidance explains whether an employer that received a Paycheck Protection Program loan can also claim the employee retention credit for 2020. The notice also explains what constitutes an “eligible employer” for the credit and how that employer can claim it. Contact us with questions about your situation. You can read Notice 2021-20 here: https://bit.ly/3babw7G
Is your new worker an employee or an independent contractor for federal income and employment tax purposes? Correct classification can be tricky, but the potential penalties for misclassification are high. If a worker is an employee, you must withhold federal income and payroll taxes, pay the employer’s share of FICA taxes on the wages plus FUTA tax. There may also be state tax and other obligations. These requirements don’t apply to a worker who’s an independent contractor. You just send the independent contractor a 1099 form for the year, showing the amount paid to that person (if the sum is $600 or more). Visit https://bit.ly/2NH3ev5 or contact us for more information.
The Work Opportunity Tax credit was set to expire on Dec. 31, 2020. But a law passed late last year extends it through Dec. 31, 2025. Here’s how employers can benefit if they’re hiring. #taxes https://bit.ly/3b9G5dV
A $1.9 trillion COVID-19 relief package was passed by the House on Feb. 27 and is now with the Senate. It includes direct payments of $1,400 to eligible individuals and each qualified dependent. Payments start to phase out at $75,000 in income for individuals and go to zero for individuals making $100,000. Also included: an expanded child tax credit, which would give eligible families up to $3,600 per child over a year; rent payment relief; enhanced unemployment benefits; K-12 school and higher education reopening assistance; money for COVID-19 vaccines and testing; $350 billion in state, local and tribal government relief; and much more. We’ll keep you updated about the bill’s status.
The COVID-19 pandemic has driven demand for secure online transactions. Do your company’s customers really trust your website? #Website #trust https://bit.ly/2ZHVAmJ
On March 6, the $1.9 trillion American Rescue Plan was passed by the U.S. Senate by a 50-49 party-line vote. The bill now heads back to the U.S. House of Representatives for a final vote and if it passes, it goes to President Biden to sign into law. Among the many provisions of the bill are: $1,400 direct COVID-19 aid payments to qualifying individuals; a $300 weekly boost to unemployment benefits through Sept. 6 and an increase of the child tax credit for one year to $3,000 per child (up from the current $2,000) for eligible taxpayers. We’ll keep you updated on the bill’s status.
The Paycheck Protection Program has undergone some notable changes recently as the Small Business Administration and Biden administration seek to give very small businesses easier access to loan funds. #PPP https://bit.ly/3qpqSK4 #SBA
When filing your tax return, is it better to take the standard deduction or claim itemized deductions? It depends. The standard deduction changes yearly and is based on filing status and age. Itemizing requires more calculations but can save taxes if the total deductions exceed the standard deduction. Those most likely to benefit from itemizing are those who pay state and local income tax, mortgage interest, mortgage insurance, real estate or personal property tax; suffered a large eligible casualty loss; make significant charitable donations; and/or have high medical deductions. We can help choose your best path. #deduction
Some businesses eventually opt to take their 401(k) plans to the next level by offering designated Roth contributions. However, this isn’t a decision to take lightly. #401k #Roth https://bit.ly/3bTFcFx
Flexible Spending Accounts (FSAs) for dependent care are a tax-favored way to pay certain expenses, but rules apply. Employees may redeem these FSA funds only as reimbursements for qualified dependent care. The costs must be incurred within time limits, and unused funds must be forfeited. In light of COVID-19, some FSA rules have been eased, but not all. When one taxpayer was unable to use up his dependent care funds due to COVID-19, he asked to have the funds paid to him. However, IRS Information Letter 2020-0027 notes that employers are restricted from returning FSA dependent care funds except as reimbursement of employment-related dependent care expenses. Contact us with questions.
In Notice 2021-20, the IRS provides guidance on claiming the employee retention tax credit for calendar quarters in 2020. The guidance clarifies details about the credit and describes retroactive changes made under a law enacted recently. Among other things, the guidance explains whether an employer that received a Paycheck Protection Program loan can also claim the employee retention credit for 2020. The notice also explains what constitutes an “eligible employer” for the credit and how that employer can claim it. Contact us with questions about your situation. You can read Notice 2021-20 here: https://bit.ly/3babw7G
The American Rescue Plan Act (ARPA), which was signed into law on March 11, extends the Employee Retention Credit from June 30 until Dec. 31, 2021. The law continues the rate of the credit at 70% for this extended time period. It also continues to allow for up to $10,000 in qualified wages for any calendar quarter. Taking into account an earlier law extension and the ARPA extension, this means an employer could potentially have up to $40,000 in qualified wages per employee through 2021. The new law also makes some modifications to the credit, including limiting it to $50,000 per calendar quarter for an eligible employer that is a “recovery startup business.” Contact us for more information.
On March 11, President Biden signed the American Rescue Plan Act into law. It provides an income tax credit that will be paid in advance (in direct deposit or paper checks) to eligible individuals. Individuals will receive $1,400 ($2,800 for eligible joint return filers) plus $1,400 for each eligible dependent. The credit amount is reduced for taxpayers with an adjusted gross income (AGI) of over $150,000 for married joint filers ($112,500 for heads of household and $75,000 for other taxpayers). The credit is completely phased out (reduced to $0) for taxpayers with an AGI of over $160,000 for married joint filers ($120,000 for heads of household and $80,000 for other taxpayers).
There’s still time to reduce your 2020 tax bill if you’re eligible for a deductible traditional IRA. Taxpayers of all ages may be able to claim deductions on their 2020 tax returns for contributions to their IRAs made through April 15, 2021. This is true even if you file your tax return before making the contribution, as long as the contribution is made by April 15, 2021. For 2020, the maximum IRA contribution is $6,000, or $7,000 for those age 50 or older by the end of 2020. Previously, taxpayers could only contribute to an IRA until age 70 1/2. That limit was removed in 2020. Contact us with questions or learn more about eligibility here: http://bit.ly/38yJfWQ
You’ve probably heard about the new law that provides direct payments to eligible individuals. But what does the law provide to businesses? #Arpa #business https://bit.ly/38I6o99
For tax purposes, there are many ways to conduct a business. For example, you may operate as an S corporation or a partnership. But many new ventures start out as sole proprietorships. Here are some tax considerations involved in operating with that entity. #taxes https://bit.ly/38nPCw5
The IRS has issued a Tax Tip that provides instructions to employers on how to pay any employee payroll taxes that the employer deferred in 2020 as a result of a 2020 executive action from then-President Trump. The optional deferral applied to employees with less than $4,000 in wages every two weeks, or an equivalent amount for other pay periods, and applied to wages paid beginning on Sept. 1, 2020, and ending on Dec. 31, 2020. Here’s information from the IRS about how employers can make employee deferral payments through the Electronic Federal Tax Payment System: https://bit.ly/3qAlOT3
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What employers need to know about repayment of deferred payroll taxes | Internal Revenue Service
An employee benefit has been greatly expanded by the American Rescue Plan Act (ARPA), which was signed into law on March 11. Many employers maintain flexible spending cafeteria plans to help employees pay for dependent care while they work. Under a qualified dependent care assistance program (DCAP), certain amounts paid or incurred by an employer generally aren’t included in an eligible employee’s gross income. Under prior law, the exclusion amount was limited to $5,000 per year ($2,500 for married persons filing separate returns). For 2021 only, the exclusion has increased to $10,500 for most taxpayers ($5,250 for married filing separately), not to exceed the employee’s earned income.
Even though the provisions of the newly passed American Rescue Plan Act (ARPA) lean heavily toward individuals, there are several key provisions for businesses. For example, the ARPA introduces targeted Economic Injury Disaster Loan (EIDL) grants from the Small Business Administration (SBA). The loan grants are available for eligible small businesses, and the amounts received as targeted EIDL advances aren’t included in the gross income of the individuals who receive the amounts. Along the same lines, under ARPA, eligible restaurants, food trucks and similar businesses can receive restaurant revitalization loan grants from the SBA. Contact us for additional information.
The economic forecast for 2021 looks relatively bright. Is your sales staff up to the challenge of making the most of the revenue opportunities ahead? #salestips https://bit.ly/2OZJvXO
Under the newly passed American Rescue Plan Act (ARPA), the Child Tax Credit (CTC) has expanded for 2021 for eligible taxpayers. Before the ARPA, the CTC was $2,000 per “qualifying child.” A qualifying child was defined as a child under age 17, whom the taxpayer could claim as a dependent. For 2021, the ARPA increases the CTC to $3,000 per year for each child age six to 17 and $3,600 for children under age six. To be eligible for the full payment, you must have a modified AGI of under $75,000 for singles, $112,500 for heads-of-households and $150,000 for joint filers and surviving spouses. The credit begins to phase out at higher incomes.
The American Rescue Plan Act (ARPA), which was signed into law on March 11, extends the Employee Retention Credit from June 30 until Dec. 31, 2021. The law continues the rate of the credit at 70% for this extended time period. It also continues to allow for up to $10,000 in qualified wages for any calendar quarter. Taking into account an earlier law extension and the ARPA extension, this means an employer could potentially have up to $40,000 in qualified wages per employee through 2021. The new law also makes some modifications to the credit, including limiting it to $50,000 per calendar quarter for an eligible employer that is a “recovery startup business.” Contact us for more information.
