New Exclusion of up to $10,200 of Unemployment Compensation
If your modified adjusted gross income (AGI) is less than $150,000, the American Rescue Plan enacted on March 11, 2021, excludes from income up to $10,200 of unemployment compensation paid in 2020, which means you don’t have to pay tax on unemployment compensation of up to $10,200. If you are married, each spouse receiving unemployment......
Who is eligible for the third Economic Impact Payment and what incomes qualify?
Generally, if you are a U.S. citizen or U.S. resident alien, you are eligible for the full amount of the third Economic Impact Payment if you (and your spouse if filing a joint return) are not a dependent of another taxpayer and have a valid Social Security number (see exception when married filing jointly) and......
New Due Date for Individual Tax Returns
New Due Date: May 17, 2021 – Individual (1040 ) Treasury, IRS extend filing and payment deadline: Tax Day for individuals extended to May 17 https://www.irs.gov/newsroom/tax-day-for-individuals-extended-to-may-17-treasury-irs-extend-filing-and-payment-deadline Need Help? If you need further assistance, please let us know as soon as you can. For a quick consultation, here is our calendar. Please book a time that works for......
Details And Analysis Of President Joe Biden’s Tax Proposals: Highlights
Key Findings President Joe Biden’s tax plan he released before the election, would enact several policies that would increase taxes on individuals with income above $400,000. This includes raising individual income, payroll taxes, and capital gains. He would also increase corporations’ taxes by imposing a corporate minimum book tax and increasing the corporate income tax......
Important Things You Need to Know: Tax Season 2021
What changed for the 2021 tax season? 2021 Tax Season Income Brackets and Rates Increased Standard Deductions for 2020 The standard deduction goes up marginally for the tax year 2020 to compensate for inflation. Standard Deduction Tax Season 2021 – Deductions and Credits For your 2020 tax return, here are some exemptions and credits you......
New Changes to 1099-MISC; Do I Need to File Both 1099-MISC and 1099-NEC?
What is New? In filing the year 2020, IRS has created a new form 1099-NEC, it is for businesses who made payment to individuals, non-employees, independent contractors, freelancers, and vendors who are LLCs that you paid $600 or more in 2020.Before 2020, it was reported on Box 7 of 1099-MISC, which is the total amount......
SBA And Treasury Announce PPP Re-Opening; Issue New Guidance
The U.S. Small Business Administration (SBA), in consultation with the Treasury Department, announced today that the Paycheck Protection Program (PPP) will re-open the week of January 11 for new borrowers and certain existing PPP borrowers. To promote access to capital, initially, only community financial institutions will be able to make First Draw PPP Loans on Monday,......
Do I Qualify for the First or Second Draw of the PPP Loan?
The SBA released the new guidelines last Friday on the second round of PPP. Basically, the second round of PPP follows similar terms as the first round with a few changes. Loan amount The loan amount will be calculated equal to 2.5 times your average monthly salary in 2019 or 2020. The Loan can be......
BUSINESS E-FILE STARTS SOON!
DHH can start accepting and e-filing C Corp S Corp LLC and partnership returns from January 8, 2021....
Do you Want to Apply for the Second Round of PPP Loan?
The COVID-19 relief bill signed by President Donald Trump consists of $285 billion available for the Paycheck Protection Program. Here are the most Frequently Asked Questions to help you: Am I qualified for a second round? Before being qualified for a loan (first or second), the legislation says that you must be able to prove......