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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Tax & Business Newsletter: February 2021
Cut Your Business's Tax Bill With These Provisions As tax filing season officially gets underway, here are several new business-related tax provisions that could help cut your tax bill. The three provisions outlined in this article can also be applied retroactively. Net Operating Losses (NOL). When your company’s tax deductions exceed taxable income, the result is …
Understanding Tax Terms: AFRs
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. Your …
SBA announces PPP process changes
The U.S. Small Business Administration (SBA) announced changes Wednesday designed to reduce delays in the Paycheck Protection Program (PPP) approval process. Millions of small businesses have applied for PPP forgivable loans since it reopened Jan. 11 with $284 billion in fresh funding. A significant percentage of those applications has been held up by process and system issues …
Eligible educators may deduct personal protective equipment expenses
The IRS provided a safe harbor under which “eligible educators” can deduct unreimbursed expenses for COVID-19 protective items as educator expenses under Sec. 62(a)(2)(D) (Rev. Proc. 2021-15). COVID-19 protective items include, but are not limited to: Face masks;Disinfectant for use against COVID-19;Hand soap;Hand sanitizer;Disposable gloves;Tape, paint, or chalk to guide social distancing;Physical barriers (e.g., clear …
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Oops! I Wish I Knew That.
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. Here are six tax topics that seem innocent but can cause problems if not handled correctly. 1. Gambling winnings. If you receive a tax form …
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