With the passage of the latest COVID Relief Bill, there were some changes to the business meals expense deduction for 2021 and 2022. Here’s some clarification on how you can take a 100% deduction: Meals served at social or recreational events for employee benefit (Zoom counts!). To clarify, these gatherings cannot only benefit highly compensated… Read More »
The maximum Economic Impact Payment in 2020 was $1,200 ($2,400 if married filing jointly for 2020). There was an additional payment of $500 for each qualifying child you had in 2020. The Recovery Rebate Credit was authorized by the Coronavirus Aid, Relief, and Economic Security (CARES) Act. This credit will either increase your tax refund or reduce… Read More »
2021 – Annual Report Instruction Form. Many of our clients are receiving solicitations from third party servicers to file their CT annual reports for a fee. While the annual report filing is mandatory, it is a simple process and can be completed on your own. Please note that the fees for the annual report filings… Read More »
Effective January 1, 2021 employees must contribute 0.5% of their income to the new Connecticut Family Medical Leave Act (CTFMLA) tax. Prior to this date, employers must register their businesses with the CT Paid Leave Authority. Before the end of 2020, Connecticut employers need to visit www.ctpaidleave.org to register their businesses. Businesses and self-employed individuals… Read More »
The IRS issued final guidance that states taxpayers cannot claim a deduction for any otherwise deductible expense if the payment of the expense results in forgiveness of the PPP loan. The reason being is that the income associated with the forgiveness is excluded from gross income under the CARES Act. IRS doubles down on nondeductibility… Read More »
The CARES Act re-incentivized charitable contributions for the 2020 tax year. This temporary tax law change allows taxpayers to deduct up to $300 in cash donations to qualifying charities this year. As a result, taxpayers who claim a standard deduction can also benefit from the $300 contribution as an “above the line” deduction. This change… Read More »
October 15 is the deadline for individual taxpayers who extended their 2019 tax returns. (The original April 15 filing deadline was extended this year to July 15 due to the COVID-19 pandemic.) If you’re finally done filing last year’s return, you might wonder: Which tax records can you toss once you’re done? Now is a… Read More »
Here are some of the key tax-related deadlines affecting businesses and other employers during the fourth quarter of 2020. Keep in mind that this list isn’t all-inclusive, so there may be additional deadlines that apply to you. Contact us to ensure you’re meeting all applicable deadlines and to learn more about the filing requirements. Thursday,… Read More »
There’s a new IRS form for business taxpayers that pay or receive nonemployee compensation. Beginning with tax year 2020, payers must complete Form 1099-NEC, Nonemployee Compensation, to report any payment of $600 or more to a payee. Why the new form? Prior to 2020, Form 1099-MISC was filed to report payments totaling at least $600… Read More »
Did you recently file your federal tax return and were surprised to find you owed money? You might want to change your withholding so that this doesn’t happen next year. You might even want to do that if you got a big refund. Receiving a tax refund essentially means you’re giving the government an interest-free… Read More »
