News

For the 2021 tax year only, the American Rescue Plan Act of 2021 (ARPA) makes big, taxpayer-friendly changes to the federal income tax child tax credit (CTC).  Here’s what you need to know, starting with some necessary background information. CTC Basics For 2018-2020 and 2022-2025, the maximum annual CTC...

With the passage of the American Rescue Plan Act of 2021 (ARPA), Congress has temporarily abolished the health insurance premium tax credit “subsidy cliff.”  For 2020 and 2021, self-employed and small-business owners and other individuals who must purchase individual health insurance may qualify for premium tax credit health insurance...

With the Consolidated Appropriations Act, 2021, millions of small-business owners like you now qualify for the employee retention credit (ERC), thanks to three big changes: You can now obtain the ERC and the Paycheck Protection Program loan, but not on the same wages. This new rule applies retroactively to...

You likely already know that the employee retention credit (ERC) is a good deal—if you qualify. Now, thanks to the recently enacted American Rescue Plan Act of 2021 (ARPA), you can qualify for up to $100,000 of ERC in the third and fourth quarters of 2021 if you begin...

First, say thanks to the Consolidated Appropriations Act, 2021 (CAA), enacted December 27, 2020. It opened the door (retroactively and going forward) for Paycheck Protection Program (PPP) participants to also claim the employee retention credit (ERC). Reminder. Tax credits are the best. They usually reduce taxes dollar-for-dollar.  (The ERC...

If you are married, most likely you’ve always filed a joint tax return with your spouse. Most of the time, a joint return shows less overall tax than two separate tax returns do, because the married-filing-separately status has many tax disadvantages. Fast-forward to the 2020 tax filing season, however—and...

Members of the tax community struggle with the “solo corporate owner” qualification for the employee retention credit (ERC). The IRS in one of its answers to frequently asked questions explains the rule as follows: 59. Are wages paid by an employer to employees who are related individuals considered qualified...

This is likely it—your last chance to obtain first- and second-draw Paycheck Protection Program (PPP) monies.  A new law, the PPP Extension Act of 2021, extends the expiration date to the later of May 31 or when the money runs out. Note the phrase “when the money runs out,”...

The Taxpayer Certainty and Disaster Tax Relief Act of 2020, enacted on December 27, 2020, deals with the annual tax extenders. Congress made some of them permanent, while others got short- or long-term extensions.  These are the big five Form 1040 tax breaks that were scheduled to expire on...

Previously, we sent you emails discussing the tax issues that arise when a financially comfortable loved one has passed away. In this email, we dive into some of the non-tax issues you will have to deal with as the executor of the estate. Getting Extra Death Certificates For various...

The IRS can waive penalties it assessed against you or your business if there was “reasonable cause” for your actions. The IRS permits reasonable cause penalty relief for penalties arising in three broad categories: Filing of returns Payment of tax Accuracy of information Contrary to what you might think,...

How do you multiply your net worth? Let the government help. Here’s how: with both the SEP IRA and the solo 401(k) retirement plans, your investment in your tax-favored retirement creates tax deductions for the money you invest in the plan,  grows tax-deferred inside the plan, and  suffers taxes...