Video Tip: Solutions To Consider When You Owe Tax Debt
Watch the video for some possible solutions when you can't pay back the debt to the IRS in time
Tax Central
Great News, Child Care Tax Credit Extended For 2021
If you haven’t heard, the Child Care Tax Credit was extended through 2021. Great news if you are paying childcare expenses that enable you to work. As part of President Biden’s American Rescue Plan Act (ARPA) signed into law on March 11, 2021, the child and dependent care tax credit has been substantially increased. Details …
Big Increase in Child Tax Credit for 2021
An increase in child tax credit is part of President Biden’s stimulus package to help tackle the coronavirus pandemic and stimulate the economy. This stimulus package will provide lower-income parents with substantial financial assistance and supports various other efforts to stimulate the economy. It’s known as the American Rescue Plan Act, and was passed by …
Are Your Unemployment Benefits Taxable?
Are unemployment benefits taxable? As with many tax questions, the answer is “It depends”. With the passage of the CARES Act stimulus package early in 2020, the federal government began supplementing the state’s weekly unemployment benefits. They added $600 per week to unemployment benefits through the end of July 2020. When this provision ran out, …
It’s Official! Another Round Of Stimulus Payments Approved By Congress
Another round of stimulus payments approved by congress? It’s true. The American Rescue Plan Act has passed and includes a third much-anticipated economic impact payment (EIP). This is one of several government measures intended to help financially stressed citizens. This will be the third round of EIPs since the pandemic began disrupting the economy at …
Is There a Tax Deduction Working From Home?
“Do I get a tax deduction working from home”? It’s the biggest question we hear from almost everyone these days. Especially as many individuals have been forced to work from home due to the COVID pandemic. So do you qualify for a special tax deduction for using your home as a workplace? Let’s break it …
Collection of Easy-to-Use Tax Calculators for Personal Finance and more
Looking for tax calculators to help estimate your taxes, or determine your capital gains or losses? Or how about a calculator to help determine if your spouse should enter the work force? This section includes a library of over one hundred financial calculators. The calculators are easy-to-use and provide in-depth analysis for virtually any financial …
Video: Can I Get a Tax Deduction for a Home Office?
With so many people working at home this year, we’ve received lots of questions about the possibility of receiving a tax deduction for a home office. Because of the pandemic, many have been forced to work from home for the past year. People want to know if they qualify for a tax deduction because they …
Beginners Guide to Figuring Out Your Tax Filing Status
Understanding tax filing status can be confusing. This article can help clear up any questions you may have about your tax filing status. Filing status is determined on the last day of the year and most often is based on marital status. The two most common tax filing status: Single Unmarried individuals without dependents. Married …
Analyzing Overtime Costs: A Strategic Step for HR
Analyzing overtime costs can be an important strategic step in determining when to hire new workers and improve efficiency in operations, labor costs and productivity. Overtime vs. More Hires An important strategy for making hiring decisions is looking closely at the costs of overtime compared with the costs of hiring additional employees. Those costs will …
Special Rules Apply to 2020 EITC and Child Credit
2020 EITC and Child Credit must now follow special rules. Because of the pandemic, many individuals have seen their employment (earned) income plummet. In that situation, two very important tax credits, the Earned Income Tax Credit (EITC) and the Child Tax Credit (CTC) will be adversely affected. Since the credits, are based in part on …
Tax Consequences of Crowdfunding
If you’ve ever had concerns about the tax consequences of crowdfunding – you are not alone. Raising money through Internet crowdfunding sites like GoFundMe, Kickstarter, Patreon or Indiegogo often prompts questions about the taxability of the money raised. A number of sites host money-raising projects for fees generally ranging from 5 to 9%. Each site …
Video: Required Minimum Distribution Resumes In 2021
Congress put a halt on the Required Minimum Distribution (RMD) for the traditional IRA in 2020 in response to the pandemic. However, the RMD will be resumed in 2021 and subsequent years. Please give us a call at 360-778-2901 if you have questions about your Required Minimum Distribution. Or if you’d like to learn more …
Itemizing NOT Necessary. Claim These Tax Deductions Without Itemizing
Claiming tax deductions without itemizing on your tax return? It’s now a reality. Most taxpayers think they have to itemize their deductions to claim them on their tax return. However, that is not entirely true. You can claim certain deductions while still using the standard deduction. Here is a list of tax deductions you can …
Solar Tax Credit Extended for Two Years
The solar tax credit extension is great news for homeowners looking to use green power. Now, the federal tax credit for the purchase and installation costs of a residential solar system has been extended through 2023. The credit for 2021 and 2022 is 26% of the cost of the solar installation. This credit drops to …
Business Relief: The Employee Retention Credit Extended
Employers are seeing some much needed relief now that the the Employee Retention Credit has been extended. The Coronavirus Aid, Relief, and Economic Security (CARES) Act created the Employee Retention Credit for 2020 to help businesses. The credit helps employers retain their workers by keeping them employed during the COVID-19 crisis. As part of the …
Tax Relief for Victims of 2020 Natural Disasters
Tax relief for victims of natural disasters? Yes! Most of us will always remember the year 2020 as the year of the mask. But on top of the worldwide pandemic, street protests, and hotly contested election races, the U.S. had numerous natural disasters in 2020; hurricanes, an unprecedented number of wildfires, flooding and severe windstorms …
Obscure and overlooked tax deductions, credits, and benefits
As tax time approaches, we’ve listed out some frequently overlooked tax deductions, credits and benefits that cover a range of taxpayers. Of course, not everything can be included. Since the tax law has grown significantly in complexity over the years – it would take a huge book to list everything! But here are over 20 …
Tax time is around the corner! Are you ready for 2020 taxes?
It’s time to get ready for 2020 taxes now that tax season is just around the corner. If you are like most taxpayers, you are probably facing the ominous chore of compiling records in preparation for your tax appointment—whether in person, by video or telephone. The difficulty of this task depends upon how well you …
IRS Offers New Identity Protection for Taxpayers
Have you heard about the new identity protection for taxpayers that the IRS is now offering? In the past, the IRS has assigned verification numbers to victims of identity theft to file their tax returns. That is, if it requested by the victimized individual. The numbers are referred to as identity protection (IP) PINs. What …
How Biden’s American Rescue Plan Might Impact Your Taxes
President Biden released his “American Rescue Plan” on January 14. It is a wish list of proposals he wants Congress to enact to address the COVID-19 pandemic and associated economic crisis. While some of the proposals are intended to be in effect for just one year, they could be extended or made permanent later on. …
Charitable Contributions Deduction Liberalized For 2021
We now have a charitable contributions deduction in 2021! As a means to stimulate charitable contributions during the COVID crisis, Congress made two notable changes for 2020. One that allows taxpayers that don’t itemize their deductions an above-the-line deduction for cash contributions of up to $300. And another for those itemizing their deductions to increase …
Meet our Friendly Office Greeters!
We’re extremely dog-friendly here at Nissen & Associates, and our friendly office greeters would like to prove it. Our furry friends often keep us company while we work, so you may encounter one of our three resident “office greeters’ on your next visit. If you prefer not to be greeted at the door by one …
What Are the Tax Advantages of Home Ownership?
Housing is a big expense, but there are a few tax advantages of home ownership that tip the scale towards owning over renting. However, home ownership often means financing in order to make that major purchase a reality. Despite the cost, as of November 2020, the nationwide average for a 30-year fixed-rate mortgage was just …