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Do you have questions about the Advance Payments of the Child Tax Credit?

Like many Americans who have child dependents on your tax return, you may have recently received a letter from the IRS regarding advance payments of the Child Tax Credit.  If you are wondering how this will affect you, we have compiled some FAQs below that will hopefully answer the questions you may have. What has [...]

By |2021-06-21T16:41:43+00:00June 21st, 2021|Individual Tax, News & Events, Press Releases|0 Comments

Alabama Pass Through Entities Can Now Pay State Tax at Entity Level

By: Kim Smith, CPA, Tax Shareholder Kim is a shareholder, a member of the JMF Tax Department and in charge of the JMF State and Local Tax (SALT) group. With over 20 years of experience, she assists clients with corporate, partnership, and individual income tax reporting as well as complex multi-state income and sales tax issues. On [...]

Four Major Changes in Flex Spending Rules

New legislation has enhanced the rules for flexible spending accounts (FSAs). Generally, participants in FSSAs will have more flexibility in managing their accounts, albeit temporarily. Key point: Employers may choose to implement the new law changes, but are not required to do so. Background: There are two types of FSAs that employers may offer to [...]

How Traditional and Roth IRAs Differ

As you probably already know, there are two basic types of IRAs: the traditional IRA and the Roth IRA. With either one, the deadline for contributions for the 2020 tax year is May 17, 2021 (extended from April 15, 2021). There are no further extensions even if you obtain the regular “automatic extension” for [...]

Big Improvements to Child Tax Credit for 2021 Only

Congress keeps raising the stakes for the Child Tax Credit (CTC). Following other recent tax law changes, the new American Rescue Plan Act (ARPA) includes several significant enhancements to the CTC for 2021. What’s more, these tax breaks will start paying off in July—not when you file your 2021 tax return. Background: Prior to ARPA, [...]

ARPA Authorizes COBRA Subsidies

The new American Rescue Plan Act (ARPA) includes relief for both individuals and businesses. Case in point: A key provision in the new law provides tax-free COBRA subsidies to ex-employees for a limited period of time. To top things off, employers are entitled to a payroll tax credit for the resulting costs. Background: Under the [...]

ALERT: You Might Have Been a Target of Unemployment Fraud

The pandemic has seen a dramatic rise in the instances of Unemployment Fraud in the United States.  The Alabama Department of Labor has confirmed nearly 30,000 cases throughout the state.  We have seen plenty of this type of fraud as well. Businesses and employees are being targeted, with scammers using real names to file unemployment claims [...]

Tax Rules for Passive Activity Losses aka PALs: Not So Friendly

Do you own investment real estate—perhaps an apartment building—you rent out to tenants? Despite complications this year, the real estate may still be a valuable source of income. Of course, any rental income you receive is taxable, but the resulting tax liability may be offset by deductible expenses. In some cases, you might even qualify [...]

By |2021-04-19T16:04:38+00:00April 19th, 2021|Individual Tax, News & Events, Press Releases|0 Comments