Good news, that is sometimes not so good. Getting a tax refund is not all it's cracked up to be. Here are some things to consider. For some reason, some believe it is better to receive than give when it comes to filing taxes. While that may help your savings account, it is not always …
Author: Velisa Bookkeeping Services LLC
Amounts paid for personal protective equipment qualify for medical deduction
The IRS said on Friday that amounts paid for personal protective equipment (PPE), including masks, hand sanitizer, and sanitizing wipes, for the primary purpose of preventing the spread of COVID-19 can be treated as amounts paid for medical care under Sec. 213(d) (Announcement 2021-7). As a result, amounts paid by an individual taxpayer for COVID-19 …
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Income the IRS Can’t Touch
Looking for tax-free income? Here is a list of the more common types. Wouldn't it be nice to have a source of nontaxable income? You may be more fortunate than you realize. Here are several types of income that the IRS does not tax. 1. Tax-free interest. The federal government does not tax municipal bond interest. …
Federal Tax Deadline Extension
The Treasury Department and Internal Revenue Service announced today that the federal income tax filing due date for individuals for the 2020 tax year will be automatically extended from April 15, 2021, to May 17, 2021. The IRS will be providing formal guidance in the coming days. "This continues to be a tough time for …
ALERT! 2020 Tax Date Delay AND Unemployment Income Now Tax Free
A surprise tax break for the unemployed is creating havoc on filing tax returns this year. Here is what you need to know. Individual tax filing due date: May 17, 2021 (was April 15, 2021) Unemployment income: $10,200 per person not subject to federal tax (was taxable) A surprise tax break for 2020 was passed into law in March of …
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Tax Planning Insights: March 2021
In this issue: Major Life Events May Mean Major Tax Changes Major life changes can be stressful, not least because they often affect your taxes. The following are just some of the many life events that you’ll encounter, along with some tips on how to cut your tax bill or save money. Getting married. Your marital …
Tax Return Review Hints
Prior to e-filing your tax return, you will need to review it. Here are some suggestions to ensure everything looks right. The Basics Confirm the basics for you, your spouse and your dependents: Double check the name, address, Social Security Numbers and proper identification of dependents that are under age 17Double check filing status.Confirm your income …
IRS issues employee retention credit guidance
The Employee Retention Credit is 50% of up to $10,000 in wages paid by an eligible employer whose business has been impacted by COVID-19. In Notice 2021-20, the IRS issued detailed guidance for employers claiming the employee retention credit for calendar quarters in 2020. The credit was created by the Coronavirus Aid, Relief, and Economic Security …
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Defending Fair Market Value
Fair market value is often one of the IRS's go-to items when auditing you. Here is what you need to know. Fair market value (FMV) is the price that property would sell for on the open market. It is the price that would be agreed on between a willing buyer and a willing seller, with …
Review Your Social Security Earnings Report
Now is the time for taxes AND reviewing your Social Security earnings report. Most of us go through life without being concerned with, or ever checking on, our Social Security records. We assume the money deducted each payday and an equal amount paid in by our employer is applied properly to this valuable retirement benefit. …
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