What You Need to Know About the 2021 Child Tax Credit
You may have noticed that the buzz around the new 2021 Child Tax Credit intensified these past two weeks as many parents saw $300 payments hit their checking accounts. As your tax advisors, it is our job to lay out the positives and the potential concerns these payments may present regarding your future tax liability. […]
Change to the Business Meals Expense Deduction
In March of 2021, Congress enacted the American Rescue Plan that included many modifications to the preparation of 2021 business tax returns. The most significant aspect for businesses under IRS code section 274(n) is the change to the business meals expense deduction from 50% to 100%. There are conditions of course, which we outline below. […]
CARES Act Tax Planning
While many are facing difficult times, our lives and business do not stand still. Tax and financial planning are critical, and we urge our friends to be proactive. The following are some of the more notable provisions that will affect your CARES Act Tax Planning. Tax treatment of Stimulus Check – $1200 Technically, the rebate […]
2020 End of Year Tax Updates
As all of us are dealing with the challenges of a global pandemic, income taxes may be the last thought on your mind. As finances are tight, taking advantage of every deduction is more critical than ever. The following are some 2020 end of year tax updates and some planning advice. Please call us with […]
Tax Ramifications of the CARES Act
The CARES Act enacted in March of this year provided considerable resources both to businesses and individuals to keep the economy on life support during the COVID-19 crisis. The bill enacted short-term measures such as delaying the date for filing tax returns and payments, Economic Impact Payments, Payroll Protection Program loans and other measures. Listed […]
2019 Tax Preparation: IRS Substantiation of Personal Deductions and Business Expenses
Substantiation is defined as “to prove the truth of, or to support with truth or evidence”. The IRS requires taxpayers to substantiate tax-deductible personal and business expenses with written documentation. The IRS further requires the maintenance of supporting records for specified periods of time for inspection in the event of an audit. With 2019 tax […]
State and Local Tax Deductions: Limitations and Avoidance
State and local tax deductions (SALT) have been a part of the federal income tax code since its inception. Over the years, Congress has added or eliminated related taxes such as motor fuel taxes, sales taxes, and real and personal property taxes. Now they have placed a limit on the deductibility of state and local […]
2019 IRS Mid-Year Tax Update
In preparation for the upcoming tax season, the Internal Revenue Service (“Service”) is working to create new forms, update and resurrect others and scrap the “POST CARD” 1040 from. The Service continues to work to simplify the various filing processes for taxpayers. Below is our 2019 IRS mid-year tax update: 1099 Non-Employee Compensation (NEC): Taxpayers […]
10 Important Tax Changes for Individual Taxpayers Under the New Tax Law
[vc_row][vc_column][vc_column_text] 1. The Standard Deduction: The standard deduction has been nearly doubled for every filing status. The standard deductions are now: $24,000 for those filing married filing jointly and surviving spouses; $18,000 for those filing head of household; $12,000 for those filing single and married filing separately $1,050 for those filing who are a dependent […]
10 Important Tax Changes for Businesses Under the New Tax Law
The 2017 Tax Cuts and Jobs Act significantly reduced corporate tax rates, created a new business deduction for small businesses with the Qualified Business Income Deduction and modified a myriad of other deductions. The following is a high-level view of some of the more important changes currently placed into law. 1. Statutory Tax Rates The […]