PPP forgiveness may be opening at your bank soon...
FORBES.COM
PPP Forgiveness Applications Are Opening Up. Should You Apply?
If you are getting unemployment benefits, be sure to have withholding.
https://www.irs.gov/pub/irs-pdf/p5444.pdf
IRS.GOV
www.irs.gov
Does every Illinois resident know that Illinois has only a $4M exemption for its estate tax?
WEALTHMANAGEMENT.COM
The Surprising Power of the Humble Annual Exclusion Gift
Upcoming deadlines, fyi.
USATODAY.COM
Some important deadlines for your finances have changed in 2020. Here's what you need to know.
You may get a direct deposit from the IRS for interest - which of course is taxable.
TAXPRACTICEADVISOR.COM
Millions of Americans to Get IRS Interest Refund Payment
We're really not encouraging any payroll tax deferral.... you will still need to pay it down the road.
ACCOUNTINGTODAY.COM
Business groups warn of ‘substantial tax liability’ from payroll tax deferral
Higher wage earners will pay a little more in FICA tax:
The Social Security Administration (SSA) announced the wage base for computing the Social Security tax (OASDI) in 2021 increases to $142,800 from $137,700. The quarter cost-of-living adjustment (COLA) coverage figure will rise from $1,410 for 2020 to $1,470 for 2021. The increase in the quarter of coverage figure also serves to increase the lower and upper limits under optional methods for computing self-employment tax.
The SSA has released the 2021 Social Security Changes Fact Sheet.
Due to the CARES Act, individuals who claim the standard deduction may also claim a new above-the-line deduction up to $300 for cash contributions made in 2020 to certain charities. Individuals who itemize deductions and make cash contributions in 2020 to certain charities may claim an itemized deduction up to 100% of AGI (increased from 60%). Eligible charities are those described in Section 170(b)(1)(A) of the Internal Revenue Code (for instance churches, educational organizations, and organizations providing medical or hospital care or research) and do not include donor advised funds or Section 509(a)(3) supporting organizations.
We love S corps... if you have a single-member LLC not currently an S corp, it could be worth looking at electing S corp status. Contact us.
ACCOUNTINGTODAY.COM
The tax pros and cons of S corp status for small businesses
I guess the year-end is getting closer.... let me know if you want to discuss any strategies.
TAXCONNECTIONS.COM
Year-End Tax Planning Strategies For Business Owners
Not sure how much of these planned changes will actually get passed - but good to be aware.
TAXCONNECTIONS.COM
Freeman Law Tax Update: What A Biden Presidency Means For Your Federal Income Taxes
So, if you received a PPP loan, and expect forgiveness, then the expenses are not deductible. This could possibly affect your 2020 profit loss statement.
HOME.TREASURY.GOV
Treasury and IRS Issue Guidance Clarifying the Deductibility of Expenses Where a Business Received a PPP Loan | U.S. Department of the Treasury
More IRA RMD time as lifetime calculation is longer. Interesting.
ACCOUNTINGTODAY.COM
RMD tables updated to reflect longer lives
Low mortgage rates - refi time?
HARTFORDFUNDS.COM
Mortgage Refinance 101
The IRS is working with taxpayers who owe for this and the upcoming filing season.
IRS.GOV
IRS makes it easier to set up payment agreements; offers other relief to taxpayers struggling with tax debts | Internal Revenue Service
If you prefer an identity protection pin to keep your tax return safe - 2021 will be the year you can request one.
JOURNALOFACCOUNTANCY.COM
IP PINs to be available to all individuals in 2021
Year end tax planning moves to consider.
FA-MAG.COM
www.fa-mag.com
Various payroll credits are available -
CPAPRACTICEADVISOR.COM
Four Important Employer Tax Credits for 2020
Ecommerce sales? Be aware.
TAXCONNECTIONS.COM
Frequently Asked Questions On Sales And Use Taxes Economic Nexus And Wayfair
Remember, if you don't itemize, you can take $300 (single) or $600 (joint filing) for cash donations on the 2020 return. Get that done tomorrow.
Other notes from the new stimulus bill just signed:
Extended Unemployment Benefits. Individuals would receive an additional $300 per week on top of their “regular” state-determined unemployment compensation benefit for 11 weeks. This includes individuals not normally eligible to receive such benefits, including self-employed individuals.
Personal Income Tax changes:
Medical expenses will be deductible to the extent they exceed 7.5% of AGI
Revision and expansion of the Lifetime Learning Credit
Charitable contributions of $300 person ($600 for couple) deductible in 2021 in addition to the standard deduction
Certain business meals in restaurants are deductible 100% (not sure that’s a big one this year) in year 2021.
Carryforward relief to 2021 for Flexible Spending Accounts not used at end of year
For independent contractors, the 1099-Misc will be replaced for 2020 with the 1099-NEC. Just to be aware.
TAXCONNECTIONS.COM
Move Over 1099-MISC: The New Form 1099-NEC Is Here!
Updated rates for 2021.
TAXPRACTICEADVISOR.COM
2021 IRS Mileage Rates for Business, Medical, Charity Travel
Stimulus payments will start going out to those meeting the threshold.
TAXCONNECTIONS.COM
Treasury And IRS Begin Delivering Second Round Of Economic Impact Payments To Millions Of Americans
For the teachers out there.... there's a federal and state credit.
Section 275 of the Act allows teachers to include the cost of Personal Protective Equipment (PPE) in the $250 front of the return educator expense deduction retroactive for expenses paid after 03/11/2020.
If you are on payroll and have a student loan, you/the employer can make a student loan payment of $5250 per year.
THEBALANCE.COM
Employers Can Offer New Student Loan Perk Through 2025
Let us know if you want to discuss. You may qualify for additional funds.
FORBES.COM
5 Ways The New Stimulus Bill May Help Your Small Business
IRA REMINDER:
There’s still time to make your 2020 Traditional or Roth IRA contribution. Deadline is April 15.
2020 IRA Contribution Limit: $6,000 + $1,000 catch-up for those age 50 and over.
And it’s never too early to get going on this year!
2021 IRA Limit: $6,000 + $1,000 catch-up for those age 50 and over.
401K INFO:
2021 Maximum 401K Contribution: $19,500 + $6,500 catch-up for those age 50 and over.
The Treasury Department and the IRS are issuing millions of second Economic Impact Payments by prepaid debit card to speed delivery of the payments to as many people as possible.
If the Get My Payment tool on IRS.gov shows a date that a recipient’s payment was mailed, they should watch their mail for either a paper check or debit card. The debit cards arrive in a white envelope that prominently displays the U.S. Department of the Treasury seal.
The prepaid debit card, called the Economic Impact Payment card, is issued by Treasury's financial agent, MetaBank®, N.A. The IRS does not determine who receives a card.
The form of payment for the second mailed EIP may be different than the first mailed EIP. Some people who received a paper check last time might receive a prepaid debit card this time, and some people who received a prepaid debit card last time may receive a paper check.
We'll see what the days ahead bring.
WEALTHMANAGEMENT.COM
A Guide to Potential Tax Law Changes Under Biden
Meal expenses
Starting in 2021! 100% deductible.
A 100% business deduction (rather than the current 50%) is allowed for business meals as long as the expense is for food or beverages provided by a restaurant. This is effective for expenses incurred after Dec. 31, 2020, and expires at the end of 2022.
2021 will see how this plays out - for next few years at least....
THEWEALTHADVISOR.COM
2021 Biden Plan Estate Planning Advisory
Short term gains are ordinary income - not capital gains rates.
FA-MAG.COM
Robinhood Traders Face The Taxman After Falling In Love With Stocks
Let me know if you want to discuss further.
FORBES.COM
Understanding The Research & Development Tax Credit - What Small Businesses Need To Know
Stay tuned.
CNBC.COM
Self-employed and gig workers could get bigger loans under new PPP rules. They may want to wait to apply
You should consider solar panels for your house - there are some good tax credits.
ACCOUNTINGTODAY.COM
4 things to know about the federal solar power tax credit
Individual filing is pushed back to May 17th. Late start and lots of changes.
CPAPRACTICEADVISOR.COM
IRS Delays 2021 Income Tax Filing Deadline to May 17
This is good information if you are an e-commerce seller, and are selling in California - one of the more challenging states in terms of their processes.
:
https://www.accountingtoday.com/opinion/are-your-clients-doing-business-in-california-theyd-better-know-the-tax-ramifications?MessageRunDetailID=4605719529&PostID=26846107&utm_medium=email&utm_source=rasa_io
ACCOUNTINGTODAY.COM
Are your clients doing business in California? They’d better know the tax ramifications
Details on the American Rescue Plan:
https://www.accountingtoday.com/news/biden-signs-american-rescue-plan-into-law-expanding-tax-credits?MessageRunDetailID=4605719527&PostID=26853598&utm_medium=email&utm_source=rasa_io
ACCOUNTINGTODAY.COM
Biden signs American Rescue Plan into law, expanding tax credits
