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......
IRS gives new payroll tax breaks under CARE Act
There are a number of important new tax breaks provided under Coronavirus Aid, Relief, and Economic Security (CARES Act). One of them is for employers to delay payroll tax payment and another one is to get a refund of wages paid to employees. For delay of the social security taxes, employers can defer payment of......
What is IRS Levy
A levy is a legal seizure of your property to satisfy a tax debt. Levies are different from liens. A lien is a legal claim against property to secure payment of the tax debt, while a levy actually takes the property to satisfy the tax debt. When you do not pay your taxes or you......
Pros and Cons, Do you qualify for CNC?
If you have a financial hardship and lack the money to pay off your IRS or State tax debt, you may have your account put into a Currently Not Collectible, or CNC, status. There are Advantages and Disadvantages of CNC status. Advantages: Once your account is in CNC, all levies and garnishment is stopped....
IRS INSTALLMENT PLANS, WHICH ONE DO YOU NEED?
If you owe IRS taxes and cannot qualify for OIC and CNC. You can setup installment plans with IRS. Depending on how much the tax debt you have and how much you can offer to pay every month, there are different types of installments plan options....
Changes in US Taxation Laws for the year 2020 for Companies and Individuals
Taxes are one of the very few certainties in life with a very uncertain nature when it comes to changes. The new IRS released for the tax year 2020, updated the tax code which will affect how much you have to pay in income taxes when you file your return in 2021. The new taxation code......
What bookkeeping and tax preparation work to do during the year-end?
Closing your books appropriately is crucial for your business. Proper bookkeeping means accurate financials for the year and hence, accurate evaluation and analysis of your business’s financial performance! Here’s what you can do to prepare your books and taxes for the year-end:...