The Employee Retention Tax Credit was created to encourage employers to continue to pay their employees during the pandemic. This credit which as the result of the CARES act, provides qualifying employers a payroll tax credit on wages paid to employees. The potential credit can be up to $5,000 per employee in 2020 and up […]
Need some information from the IRS? There is a Let Us Help You page on the IRS.gov website that includes links to information and resources on a wide range of topics. The topics include: Advance Child Tax Credit – there have been multiple changes to the Child Tax Credit for 2021. The link provides information […]
Taxpayers may be able to claim the child tax credit if they have a qualifying child under the age of 17. Part of this credit can be refundable, so it may give a taxpayer a refund even if they don’t owe any tax. The taxpayer’s qualifying child must have a Social Security number issued by […]
Due to the tax law changes implemented in 2018 that included a significant increase in the standard deduction, far fewer taxpayers are itemizing their deductions. For most taxpayers who take the standard deduction, charitable contributions are not deductible. However, if you are 70 1/2 or over, you may still be able to reduce your tax […]
The IRS released the inflation adjusted tax credits for 2020. See if you may qualify. Earned Income Tax Credit – This is a refundable tax credit for those with earned income that meet the eligibility requirements. The maximum Earned Income Credit for 2020 is $6,660 for qualifying taxpayers who have three or more qualifying children, […]
Are you dreaming about your retirement? It is important to save for your golden years so your golden years are golden. The IRS has increased contribution limits for various retirement savings accounts for 2020. Here are some key figures: 401(k), 403(b), most 457 plans and the federal government’s Thrift Savings Plan The 2020 contribution limit […]
The Social Security Administration released key figures for 2020. Social Security and Supplemental Security Income Benefits – Social Security and Supplemental Security Income recipients should see an increase in their benefits for 2020. Social Security and Supplemental Security Income (SSI) benefits for nearly 69 million Americans will increase 1.6 percent in 2020. The 1.6 percent […]
The IRS has released a draft of Form 2019 1040-SR. This is a U.S. tax return for seniors (individuals age 65 or older). This is a simplified form (similar to the former 1040-EZ, but will be for seniors only). However, unlike the 1040-EZ, Social Security and distributions from qualified retirement plans, annuities or similar deferred-payment arrangements […]
Summer Camp May Qualify for the Child and Dependent Care Credit Has your child attended day camp this summer? If so, you may qualify for the Child and Dependent Care Credit. Following are some requirements to qualify: the child is under the age of 13 at the time of the camp – or – the child can […]
Have you received income from virtual currency transactions? If so, this income must be reported on your tax return. The IRS has begun sending letters to taxpayers with virtual currency transactions that potentially failed to report income and pay the resulting tax from virtual currency transactions or did not report their transactions properly. “Taxpayers should […]
