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, [...]
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 [...]
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 [...]
We have just learned that some balance due notices have been issued by the Alabama Department of Revenue (ADOR) due to an error in their processing system. If your Alabama privilege tax return & payment were due March 15, and you sent your payment on or around that deadline, it is possible you will receive [...]
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 [...]
Over the course of time, the caretaker roles of parents and children often reverse, especially if one or more parent experiences health problems. For example, an elderly parent may no longer be competent to handle his or her own affairs. This can raise sensitive financial and personal issues within the family. The optimal approach is [...]
On March 17, the IRS bowed to pressure and postponed the due date for filing 2020 tax returns by one month, from April 15 to May 17. (May 15 falls on a Saturday.) Even better: The extension also applies to payments of tax liability. Subsequently, the IRS clarified that taxpayers have until May 17 to [...]
In the latest round of COVID-19 legislation, the American Rescue Plan Act of 2021 passed the Senate by a 50-49 vote on March 6, 2021. The bill had been subject to many changes in the Senate after passing in the House on February 27. The bill was signed into law by the President on [...]
In the last year, Congress passed new federal legislation authorizing three key payroll tax breaks for employers. In case you missed it, we have summarized most of those on this JMF blog, and then posted it to our COVID19 page. The following is a brief overview. Employee Retention Credit: Under the Coronavirus Aid, Relief, [...]
The deduction for state and local tax (SALT) payments may have been one of the biggest tax deductions on your personal tax return—if not THE biggest—for many years. But the massive Tax Cuts and Jobs Act (TCJA), enacted at the end of 2017, caps the SALT deduction for 2018 through 2025. Nevertheless, this still [...]