Now is the time to begin tax planning for your 2021 return. Here are some ideas: Contribute to retirement accounts. Tally up all your 2021 contributions to retirement accounts so far, and estimate how much more you can save between now and December 31. If you are able, consider investing in an IRA or increasing
-> Continue reading Plan Now to Lower Your 2021 Tax Bill
The American Rescue plan signed in March, 2021 requires the IRS to pay out one half of enhanced Child Tax Credits (CTC) to eligible taxpayers beginning this month. If you or someone you know have children, here’s what you need to know: Current status IRS web-sites. The IRS has created two web sites to help
-> Continue reading Advance Child Credit Payments Update
The American Rescue Plan Act of 2021 (ARPA) retroactively excluded up to $10,200 in unemployment compensation per taxpayer paid in 2020. Since this new law was signed after some tax returns had already been filed, some people who received unemployment compensation in 2020 paid too much tax and were due a refund. After the law
-> Continue reading 2020 Unemployment Compensation Refunds Are On Their Way
Tax-advantaged accounts like 401(k)s and IRAs are convenient ways to save for your retirement. These types of accounts allow to you defer paying taxes on the amount you save until you start withdrawing your savings. The government does want to see that tax revenue eventually, though. To ensure that the government receives its share of
-> Continue reading Required Minimum Distributions in 2021
The American Rescue Plan signed by President Biden in March 2021 made significant changes to the Child Tax Credit (CTC). These changes expand the CTC to cover roughly 39 million households, covering 88% of children in the United States, and make the CTC directly payable to eligible recipients on a monthly basis. For tax year
-> Continue reading American Rescue Plan and the Child Tax Credit
In response to the pandemic that has affected us all, several temporary changes were made to the rules that govern our tax obligations. Many of these temporary changes are due to expire in 2021, so you may need to adjust your plans in the upcoming year. Here are some changes to be aware of. Required
-> Continue reading A Return to Pre-Pandemic Tax Rules
The U.S. Small Business Administration launched the registration portal for the $28.6 billion Restaurant Revitalization Fund (RRF) on April 23, and is now accepting applications for the program. Restaurants and other food providers hard-hit during the COVID-19 pandemic have been anxiously awaiting direct aid to help them recover after more than a year of government-imposed
-> Continue reading Registration Now Open for Restaurant Revitalization Fund
On March 17, the IRS announced that the federal income tax filing deadline for individuals will be automatically extended from April 15, 2021 to May 17, 2021. However, if you will be receiving a refund, you are encouraged to file before that date so that you can receive your tax refund as soon as possible.
-> Continue reading 2020 Tax Deadline Delayed for Individuals
On March 11, President Biden signed into law the American Rescue Plan, which aims to provide additional relief to Americans that are struggling due to the ongoing COVID-19 pandemic. As part of this relief, up to $10,200 in unemployment compensation that you received in 2020 may now be tax free. To qualify for this relief,
-> Continue reading Up to $10,200 of Unemployment Compensation Now Tax Free
The IRS has announced that they have finished making all first and second rounds of Economic Impact Payments. These Economic Impact Payments (commonly known as “stimulus payments”) were mandated by law to be paid to U.S. citizens and resident aliens, including children, and were generally paid via direct deposit to your bank account. If you
-> Continue reading Did You Get Your Stimulus Payments?