MESSENGER
Haukkala & Co PC Certified Public Accountant updated their business hours.
COVID UPDATE:
To our clients,
The novel coronavirus (COVID-19) is a respiratory disease that can result in serious illness or death. It is caused by a new strain of coronavirus not previously identified in humans
and easily spread from person to person. There is currently no approved vaccine or antiviral treatment for this disease.
We take great care in protecting our clients, staff, and the communities in which we serve. Your well-being is of the utmost importance. As the COVID-19 (coronavirus) economic recovery continues to evolve, Governor Gretchen Whitmer signed Executive Order (EO 2020-110) on June 1, 2020, which moves all of Michigan to Stage 4 of the Michigan Safe Start Plan. “As a result, Michiganders are no longer required to stay home. Instead, certain businesses will remain closed and specific activities that present a heightened risk of infection will remain prohibited. Any work that is capable of being performed remotely must be performed remotely (Part 2 of EO 2020-110). We as an office with the capability to work remotely must do so and will remain closed. We will continue to transact all business via our secure web portal, email, telephone, ‘snail mail’, and other means. We also have a secured drop box on the outside of our building where you can drop your information. The drop box is checked daily to ensure your information is obtained in a timely manner.
Please have patience while we work remotely to ensure the safety of our clients, staff, and the communities in which we serve. Phone calls are taken 10:00 a.m.- 3:00 p.m. Monday-Thursday and emails are answered in the order received.
We appreciate your business and your patience while we continue to serve our clients and community safely.
Are Your Unemployment Benefits Taxable? Here’s what you need to know and how it affects you.
Who is eligible for unemployment?
More than 36 million people recently filed for unemployment benefits in the wake of the COVID-19 pandemic. Are you eligible for unemployment benefits? According to the U.S. Labor Department, you can file for unemployment benefits if you lose your job “through no fault of your own.” Each state has different requirements for unemployment benefits, but generally, you must have been employed for a certain time period before you lost your job. Unemployment benefits typically last for 26 weeks in most states. Seven states provides less than 26 weeks of unemployment compensation. For example, Florida and North Carolina each offer 12 weeks, while Missouri provides 13 weeks of unemployment benefits. In most states, you are paid weekly, and you receive unemployment benefits from the state in which you last worked (Forbes.com).
Do you have to pay taxes on unemployment?
According to the IRS, unemployment benefits are taxable income. This means that any unemployment compensation that you receive from a state or the federal government must be included in your income and will be taxed at your ordinary income tax rate. By January 31, you will receive a Form 1099-G (Certain Government Payments) from the state that paid you unemployment benefits. This tax form shows the amount of unemployment benefits you received and the amount of taxes withheld. If you live in a state with no state income tax (such as Alaska, Florida, Nevada, South Dakota, Texas, Washington and Wyoming), then you may not owe any state income tax on your unemployment benefits. However, you still may owe federal income tax (Forbes.com).
For further information visit: https://ironrivercpa.com/blog/f/are-your-unemployment-benefits-taxable
IRONRIVERCPA.COM
Are Your Unemployment Benefits Taxable?
Expanded Work Share Program Helps Employers Bring Back Workers from Unemployment and Restart Their Operations
:
As Michigan businesses begin to reopen, employers are urged to utilize the State’s Work Share program which helps employers experiencing economic pain due to COVID-19 retain their workforce and bring back employees from lay-off as they restart their businesses.
For further information visit our blog:
https://ironrivercpa.com/blog/f/expanded-work-share-program-helps-employers-bring-back-workers?fbclid=IwAR3413rr7hXGYfBHEDPDPZT6OXgmd_velxyjkwJAFSkW_JqsY3tPzyVphII
IRONRIVERCPA.COM
404 Not Found
Still waiting for your stimulus check? You have until 12 p.m. Wednesday, May 13 to give the IRS your bank information.
IRS sets noon May 13 deadline to submit direct deposit information to avoid waiting for a mailed stimulus check
The IRS says 130 million stimulus payments worth more than $200 billion have been sent out.
But for the millions of people who haven’t received their payments — up to $1,200 for individuals — not knowing when, or if, the money is coming has them on edge.
On Friday, the IRS said eligible taxpayers who are still waiting on their stimulus payments have until 12 p.m. Wednesday, May 13, to use the “Get My Payment” portal to input direct deposit information to avoid having to wait for a check in the mail.
For further information and common questions or concerns visit our blog: https://ironrivercpa.com/blog/f/still-waiting-for-your-stimulus-check
IRONRIVERCPA.COM
Still waiting for your stimulus check?
New update regarding Social Security Benefits for 2021. Visit our blog for more information: https://ironrivercpa.com/blog/f/social-security-announces-13-percent-benefit-increase-for-2021
PPP loan borrowers are being steered toward forgiveness. Why they should slow down
KEY POINTS:
*The CARES Act established the Paycheck Protection Program for small businesses experiencing difficulties amid the coronavirus. Generally, the loans are forgivable if at least 60% of the proceeds go to payroll expenses.
*The Small Business Administration and Treasury Department recently released simplified forgiveness applications for firms that borrowed $50,000 or less.
*Some lenders are nudging applicants to apply, which might not be the best call for all businesses. Plenty of tax planning details remain up in the air for PPP loans.
Visit our blog for further information: https://ironrivercpa.com/blog/f/ppp-loan-borrowers-are-being-steered-toward-forgiveness
Social Security work credits are getting harder to earn in 2021
The Social Security Administration doesn't just give away benefits at random. Rather, the monthly benefit you're entitled to in retirement will be calculated by taking your average monthly wage, adjusted for inflation, over your 35 highest-paid years in the workforce, and then applying that number to a special formula. But you're only entitled to a retirement benefit if you earn enough work credits in your lifetime. And next year, those credits will be more difficult to earn.
Learn more by visiting our blog: https://ironrivercpa.com/blog/f/social-security-work-credits-are-getting-harder-to-earn-in-2021
IRS Reminds Taxpayers of Special $300 Charity Deduction without Itemizing.
The CARES Act includes several temporary tax changes helping charities, including the special $300 deduction designed especially for people who choose to take the standard deduction, rather than itemizing their deductions.
For more information visit our blog: https://ironrivercpa.com/blog/f/irs-reminds-taxpayers-of-special-charity-deduction
Michigan’s scheduled minimum wage increase not expected to go into effect next month
The Michigan Bureau of Employment Relations, Wage and Hour Division announced that the state’s scheduled minimum wage increase is not expected to go into effect on Jan. 1, 2021.
Michigan’s Improved Workforce Opportunity Wage Act of 2018 does not allow scheduled minimum wage increases when the state’s annual unemployment rate for the preceding calendar year is above 8.5 percent.
For further information visit our blog: https://ironrivercpa.com/blog/f/michigan%E2%80%99s-scheduled-minimum-wage-expected-to-not-increase
IRONRIVERCPA.COM
Michigan’s scheduled minimum wage expected to not increase
IRS Issuing Millions of Coronavirus Stimulus Payments by Debit Card:
Starting this week, the Treasury Department and the Internal Revenue Service are sending approximately 8 million second Economic Impact Payments (EIPs) by prepaid debit card.
To find out what to look for visit our blog: https://ironrivercpa.com/blog/f/irs-issuing-millions-of-covid-19-stimulus-payments-by-debit-card
IRONRIVERCPA.COM
IRS Issuing Millions of Covid-19 Stimulus Payments by Debit Card
The IRS has delayed the start date for filing federal income-tax returns; here's what you need to know
The filing season, when the IRS begins to accept and process returns, will start Feb. 12. The agency vows to be ready by then, with forms and instructions available on irs.gov. In 2020, the filing season began Jan. 27.
For further information on these changes visit our blog:
https://ironrivercpa.com/blog/f/the-irs-has-delayed-the-start-date-for-filing-federal-income-tax
IRONRIVERCPA.COM
The IRS has delayed the start date for filing federal income-tax
Many people may not get promised stimulus payments in hand if they owe back taxes.
The promise that the IRS won’t offset economic impact payments may run into a snag when tax season opens Feb. 12
To view the article with more information visit our blog: https://ironrivercpa.com/blog/f/many-people-may-not-get-promised-stimulus-payments-in-hand-if-the
IRONRIVERCPA.COM
Many people may not get promised stimulus payments in hand if the
Learn about a new tool to protect your tax return from would-be thieves. Plus find out how you are giving away the most valuable thing you own!
NEWS.RESOURCESFORCLIENTS.COM
Client Update Newsletter: February 2021
If your stimulus check is missing, here's how you can claim or report it to the IRS:
You have plenty of company if you're still waiting for your second stimulus check to arrive. At least 8 million other people who qualified for the second payment haven't received their $600 payments yet either, according to Brian Deese, the new director of the White House National Economic Council. Though many in this group are nonfilers, others are seeing delays because of errors and others issues with the checks, too.
If you haven't received the amount you expected -- including a payment for your child dependents, through direct deposit, paper check or EIP card -- and you've double-checked that you meet the eligibility requirements, it may be time to report your missing money. Depending on what's holding up your payment, such as a mistake by the IRS or a closed bank account, you may need to take different actions, including filing for a Recovery Rebate Credit on your 2020 tax return, or requesting something called a Payment Trace from the IRS.
Here's everything we know about how to hunt down and file for a missing stimulus payment, no matter your situation.
Visit our blog for more information: https://ironrivercpa.com/blog/f/if-your-stimulus-check-is-missing-heres-how-you-can-claim-or-re
IRONRIVERCPA.COM
Here's how you can claim or report missing stimulus to the IRS
MESSENGER
Haukkala & Co PC Certified Public Accountant updated their business hours.
Read about three time-tested steps you can take to start implementing your 2021 tax planning strategy. Here's what you need to know.
NEWS.RESOURCESFORCLIENTS.COM
Tax Planning Insights: February 2021
Why do you need a tax professional?
After a long pilot program, the IRS is making its identity theft PIN program available to all taxpayers. Here is what you need to know.
TIPS.RESOURCESFORCLIENTS.COM
IRS Identity Theft Program NOW OPEN! - New one-time use PIN option available for all
What do all great businesses have in common?
There are a few areas within the tax code that can cause an unpleasant surprise when encountered. Thankfully they do not happen too often. Here are six you should know about.
TIPS.RESOURCESFORCLIENTS.COM
Oops! I Wish I Knew That.
Is your retirement tax efficient?
The IRS often sees the transfer of funds as a loan, whether there is a loan agreement or not. This also means there is an implied term and interest payment. When the IRS says a transaction is a loan, what interest rate do they use? Enter AFRs. Here is what you need to know.
TIPS.RESOURCESFORCLIENTS.COM
Understanding Tax Terms: AFRs
As tax season gets underway, here are several new business-related tax provisions that could help cut your tax bill in 2020. Also read about the pros and cons about starting a business with a friend.
NEWS.RESOURCESFORCLIENTS.COM
Tax & Business Newsletter: February 2021
Now is the time for taxes AND reviewing your Social Security earnings report.
TIPS.RESOURCESFORCLIENTS.COM
Review Your Social Security Earnings Report
Plan for college and navigate the different savings options.
Major life changes can be stressful, not least because they often affect your taxes. Here are several ways that your tax situation can change due to major life events.
NEWS.RESOURCESFORCLIENTS.COM
Tax Planning Insights: March 2021
Plan ahead so your loved ones don't get stuck with a big tax bill.
Fair market value is often one of the IRS's go-to items when auditing you. Here is what you need to know.
TIPS.RESOURCESFORCLIENTS.COM
Defending Fair Market Value
Get answers to common tax questions and read about the new world of bank reconciliations. And why not have some fun with a resurgence of these classic or newly popular board games.
NEWS.RESOURCESFORCLIENTS.COM
Client Update Newsletter: March 2021
Should you hire a contractor or an employee? Read about getting your worker classification right to avoid trouble with the IRS. Also find out how to engage with your customers on social media.
NEWS.RESOURCESFORCLIENTS.COM
Tax & Business Newsletter: March 2021
Thinking of buying or selling your home?
Prior to filing your tax return, take a moment to review it for accuracy. Here are some hints.
TIPS.RESOURCESFORCLIENTS.COM
Tax Return Review Hints
Wedding bells? Be prepared for the gift of married filed jointly.
A surprise tax break for the unemployed is creating havoc on filing tax returns this year. Here is what you need to know.
TIPS.RESOURCESFORCLIENTS.COM
ALERT! 2020 Tax Date Delay AND Unemployment Income Now Tax Free - What you need to know
Big life events change your tax situation greatly.
Looking for tax-free income? Here is a list of the more common types.
TIPS.RESOURCESFORCLIENTS.COM
Income the IRS Can't Touch
