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 [...]
The Consolidated Appropriations Act (CAA) gives employers another shot at a valuable tax credit that was scheduled to go off the books at the end of 2020. It extends the Work Opportunity Tax Credit (WOTC), which had expired and been reinstated numerous times in the past, for a period of five years. In the past, [...]
Frequently, taxpayers pay close attention to itemized deductions, but forget about “above-the-line” deductions that could be even more valuable. These deductions reduce your adjusted gross income (AGI) for various tax purposes. Following is a list of ten key items available on 2020 returns. Charitable donations: Usually, charitable deductions are limited to itemizers. However, under the [...]
You are not alone. Some 260,000 taxpayers also did. These notices are called CP59 notices. The IRS has not finished processing 2019 returns due to COVID-19 delays and many of these notices were sent in error. The IRS has issued a news release saying these notices can be disregarded if you did in fact file [...]
The Consolidated Appropriations Act passed December 27, 2020 included an expansion of the 2020 Employee Retention Credit (ERC). The credit is now retroactive to the enactment of the CARES Act, March 21, 2020, and is available to employers who received PPP loan funding. Employers, including tax-exempt organizations, are eligible for the credit if they [...]
For a lot of our clients who are in the process of renewing their City of Tuscaloosa business licenses, we are getting many questions about whether to include those in the gross receipts amounts. For City of Tuscaloosa business license purposes, PPP loans (whether they are forgiven or not) are not included in gross receipts [...]