Upcoming Tax Deadlines
Upcoming Tax Deadlines February DAY 01 Businesses – Give annual information statements to recipients of certain payments you made during 2020. You can use the appropriate version of Form 1099 or other information return. Form 1099 can be issued electronically with the consent of the recipient. 01 Certain Small Employers – File Form 944 to report […]
Tax Tip: Tracking Income and Expenses for “Gig” Work
Tax Tip: Tracking Income and Expenses for “Gig” Work With working from home becoming more common in 2020 & 2021, many people are taking on freelance or “gig” work to supplement their incomes. Whether you rely on gig work as your primary income source or just log a few hours a week, it is important […]
2021 Adjustments to Tax Brackets and Deductions
2021 Adjustments to Tax Brackets and Deductions The IRS recently released a list of federal income tax adjustments for 2021. The most important changes include higher standard deductions and higher income limits for common tax rates. Standard Deduction Increases The standard deduction for individual taxpayers will increase by $150 in 2021, up to $12,550 for […]
Tax Tip: 2020 Charitable Contributions Deduction
Tax Tip: 2020 Charitable Contributions Deduction Ordinarily, only taxpayers who itemize deductions may deduct charitable contributions on their federal tax returns. However, the CARES Act allows many people who do not itemize to claim a deduction for 2020 cash contributions to IRS-approved charities. Tax deductions lower a person’s tax bill by reducing taxable income. In […]
Setting Yourself Up for a Hassle-Free Tax Season in the New Year
Setting Yourself Up for a Hassle-Free Tax Season in the New Year By taking a few simple steps now, you can greatly reduce uncertainty and stress during the upcoming 2020 tax filing season. These four actions will help complete your return efficiently, without unpleasant surprises: Gather Documents Showing Wage, Business and Other Income If you […]
Tax Tip: Perform a Year-End Tax Records Check Up to Stay on Track
Tax Tip: Perform a Year-End Tax Records Check Up to Stay on Track Consistent record keeping throughout the year is the key to a stress-free tax season. A quick checkup now, to make sure you are properly assembling and storing all the documents you need, can prevent hours of frustration during tax season. First, make […]
Unemployment Benefits Are Taxable and May Affect ACA Tax Credit
Unemployment Benefits Are Taxable and May Affect ACA Tax Credit Due to the economic impacts of the COVID-19 (coronavirus) pandemic, many individuals may have had to file for Unemployment Insurance (UI) benefits for the first time. For many, these benefits included federal Pandemic Unemployment Assistance (PUA), which provided an extra $600 per week to UI […]
Tax Tip: IRS Sending Interest Payments to Some 2019 Refund Recipients
Tax Tip: IRS Sending Interest Payments to Some 2019 Refund Recipients Over 13 million taxpayers who have received or will receive federal income tax refunds for 2019 will also receive an interest payment from the IRS. The 2019 filing and payment deadline change from April 15 to July 15, 2020 due to COVID-19 (coronavirus) was […]
Charitable Contribution Deduction Limits Increased for 2020
Charitable Contribution Deduction Limits Increased for 2020 As part of the U.S. Treasury’s COVID-19 (coronavirus) relief programs for taxpayers, the IRS has made temporary changes to the rules for deducting charitable contributions on federal tax returns. These changes may allow you to claim a larger deduction on your 2020 tax return, and may even carry […]