Nothing like changing the rules after we start playing the game. The American Rescue Plan Act of 2021 has changed the 2020 taxable unemployment. Now the only portion that is taxable for unemployment is the amount over $10,200 providing you meet the income limitations. For some of you this means changing your 2020 return that was already filed. As of right now the IRS is telling taxpayers who have already filed to do nothing. They are reviewing the law and will give guidance as they … [Read more...]
2021 Economic Impact Payment
As most of you know the American Rescue Plan Act of 2021 was signed into law March 11, 2021. Part of that bill includes another round of Economic Impact Payments to taxpayers. These payments are for taxpayers and their dependents. The first round of payments were scheduled to go out on the 12th. To check the status of your payment you can use the IRS tool for "Get My Payment" at https://www.irs.gov/coronavirus/get-my-payment. You need to know what was on the last filed return in order to … [Read more...]
Recovery Rebate Credit
If you missed out on the first two economic impact payments there is still a chance to receive those funds. This can be done through the Recovery Rebate Credit. If your income in 2020 was less than the return, your economic impact payments were based on you can claim a credit on your return to get the funds. We have seen taxpayers receive partial or even full credit for these payments that they missed out on during the year. To get this credit you need to make sure your tax preparer … [Read more...]
PPP Expenses are now Deductible
Good news for businesses comes from the COVID-related Tax Relief Act of 2020. PPP Expenses are now deductible! This was signed into law on December 27, 2020. The IRS hadn't posted anything until January 6, 2021, which is why have waited to share this news. The new law states that "no deduction is denied, no tax attribute is reduced, and no basis increase is denied by reason of exclusion from gross income of the forgiveness of an eligible recipient's covered loan." Up to this point businesses … [Read more...]
Filers: Get your Economic Impact Payment
The IRS has created an online resource for individuals who have filed tax returns to determine when and how payments will be received. Some of the functionalities of the tool are still in process, but it is a good resource. Please visit the website to: Check your payment statusConfirm your payment type: direct deposit or checkEnter your bank account information for direct deposit, if the IRS doesn't have that information and hasn't sent the paymentUpdate your mailing address if you have … [Read more...]
Non-Filers looking for Economic Impact Payment
The IRS has now put up a site for individuals who are not required to file to enter their information to receive the Economic Impact Payments. You should only use this site to enter your information if you : Have a valid Social Security Number.Could not be claimed as a dependent of another.Were not required to file a tax return because the income was under the filing requirements. This means your income was below $12,200 if single or $24,400 of married.You did NOT file a 2018 or 2019 … [Read more...]
Social Security Recipients and Economic Impact Payment
The IRS has announced that a social security recipients will not be required to file a tax return to receive the stimulus payment. The payments will automatically be sent to recipients based on their social security records. The IRS will be using your SSA-1099 or your RRB-1099 to generate your $1,200 economic impact payment. These payments will be in the form of a direct deposit or paper check, depending on how you receive your normal benefits. The Wassman CPA Services website … [Read more...]
Scams Related to Economic Impact Payments
As with any new change, there are individuals in the world who will try to cheat others who are in need of these economic impact payments. Please be aware of this, so you don’t fall victim to one any scams. Based on history we know that criminals use times when people are in need or are vulnerable to trick you into giving them information or access to your finances for their benefit. Tips to help you avoid these scams: The IRS is NOT going to call you. If you get a call from somebody … [Read more...]
Economic Impact Payments (Stimulus Payments)
The IRS has posted more information about the stimulus payments. While the IRS website still says "Stimulus payment checks: No Information available yet, no sign-up needed" there is a brief update of how it will work in the format of question and answer. What you need to know: ELIGIBILITY: You are eligible to receive the payment if you are single with gross income under $75,000 or married with gross income under $150,000. If under these amount you will receive $1,200 per person. If over … [Read more...]
Stimulus and Business Relief Update
I thought I would write this post to give you an update about what we know so far about both the stimulus money and some relief available to businesses. The stimulus bill did pass for the stimulus money and it will be based on tax returns either the 2018 or 2019 if filed. There is a max earnings amount and a phase out on earnings that will determine the amount of funds received.That being said, the IRS is who handles these payments and it has not posted anything regarding the specifics; so … [Read more...]
