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The new tax filing deadline is right around the corner. For those who have not yet filed their 2020 federal tax return, time is running out. The new deadline of May 17, 2021 means you must file your return and pay any taxes owed. Or you must file an extension and pay any estimated balance …
One thing many people do on the their taxes is overlook foreign account reporting requirements. However you DON’T want to forget this very important report. In fact, some of the largest penalties with the Government are associated with not reporting dealings with foreign financial institutions. U.S. citizens and residents with a financial interest in any …
The IRS announced they are extending the tax return filing date for 2020 individual tax returns from April 15, 2021, to May 17, 2021. This was meant to be a one-month extension, but since May 15 fell on Saturday it was extended to the next business day which is May 17, 2021. This extension only applies to individual 1040 and …
Helpful reminders for April 2021 business due dates. April 2021 Business Due Dates April 15 – Household Employer Return Due If you paid cash wages of $2,200 or more in 2020 to a household employee, you must file Schedule H. If you are required to file a federal income tax return (Form 1040 or 1040-SR), …
A friendly reminder for April 2021 Individual Due Dates. April 2021 Individual Due Dates April 12 – Report Tips to Employer Are you any employee who works for tips? If you received more than $20 in tips during March, you must report them to your employer. Do so on IRS Form 4070 no later than …
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, …
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 …
Being a Day Trader is neither illegal nor unethical, but it can be highly risky. Most individual investors do not have the wealth, time, or temperament to make money. Nor can many investors sustain the losses that day trading can bring. Day trading in securities is governed by the Securities and Exchange Commission (SEC) Regulation …
This video is an abbreviated summary of President Biden’s COVID Relief & Tax Plan. Of course, these won’t become law until the plan has been passed by Congress. Once passed, the purpose of the plan is to assist people to fight financial hardships from the pandemic. The plan contains various ways to help, including stimulus …
When starting a new business, tax issues – along with everything else – can feel overwhelming and unsurmountable. But in spite of COVID-19 restrictions, many entrepreneurs are still considering new or additional business opportunities. If you are planning a new business start-up and are incurring expenses, here are some specific tax issues to be aware …
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 …
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 …
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 …
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. …
Recently, the IRS announced the standard mileage rates for 2021 which outlines the use of a vehicle for business, medical and moving purposes. This baseline is based on a number of factors in order to determine the standard mileage rates for the following year. Recently, the IRS announced the 2021 optional standard mileage rates. Thus, …
The saver’s credit helps eligible taxpayers offset the cost of saving for retirement. Now, low and moderate income workers can take steps to save for retirement and earn a special tax credit. What is the saver’s credit? The saver’s credit is a tax credit worth up to $1000 ($2,000 if married filing jointly). The saver’s …
It seems hard to believe, but the end of the tax year will soon be here and with that, comes tax issues to be aware of. Now is a great time to review year-end tax issues that might reduce your tax bite for 2020. Other options may provide long-term tax benefits, especially in light of …
This is our annual reminder that if you use workers other than employees to perform services for your business (and those services equal more than $600 for the year) be sure to file worker 1099-NEC for them. You are required to issue each worker a Form 1099-NEC. This is for you to avoid facing the …
The holiday season is customarily a time of giving gifts. Whether to your favorite charity, family members or others – there are lots of opportunities for gift giving with tax benefits. Use caution. During the holiday season, you may receive unsolicited phone calls, emails, or other social media requests for donations for various causes. Sadly, …
It is common practice this time of year for employers to give their employee gifts to staff. The question is then – what makes a gift taxable? Some gifts are a de minimis fringe benefit. There are two main factors that determine the taxable status of a gift: the gift is infrequently offered or that …
Year-end tax planning opportunities could be exactly what could help perk up a challenging year. Mentioning that COVID-19 has made 2020 a disastrous year for just about everyone is an understatement. But these tax planning options may give you some relief ahead. In response to the economic slowdown and losses of income, Congress passed several …
If you need help planning your business tax filing deadlines for October 2020, this article is for you. We explain the most important deadlines for this month so you can stay on top of the due dates that matter. October 15 – Corporations File a 2019 calendar year income tax return (Form 1120 or 1120-A) …
The Internal Revenue Service resurrected a form unused since the early 1980s. Form 1099-NEC (the NEC stands for non-employee compensation) is now back in use. This form is used to report non-employee compensation instead of the 1099-MISC. The 1099-MISC has been used since 1983 to report payments to contract workers and freelancers to the IRS. …
Did you know? Unemployment benefits are taxable! With the passage of the CARES Act stimulus package earlier this year, the federal government added $600 to the normal state weekly unemployment benefits. Also, the number of benefit weeks were increased to a total of 39. In many cases, workers are receiving unemployment benefits for the first …
