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 [...]
Are you planning to give gifts to family members in 2021? As long as the gifts do not exceed the limits for the annual gift tax exclusion, you have no federal gift tax worries. Generally, you do not even have to file a gift tax return. However, there are times when you DO have to [...]
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 [...]
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 [...]
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 [...]