By Dustin Wielenga, CPA *Post updated January 12, 2023 for new rules Many companies, as well as individuals with business activities (including rentals), are required to file Forms 1099. This includes self-employed individuals, or individuals with rental properties. The filing deadline is as early as January 31 of each year, so it is important to act quickly. What is Form 1099? There are a couple of different Forms 1099. They…
As year-end approaches, it is an ideal time to think about planning moves that may help lower your tax bill for this year and possibly next. This year’s planning is more challenging than usual due to the uncertainty surrounding pending legislation that could, among other things, increase corporate taxes rates and top rates on both ordinary income and capital gains starting next year. Whether or not tax increases become effective…
By Dustin Wielenga, CPA *Note that there are some updates to the filing that applies starting for the 2020 tax year forms. These details are listed below Many companies, as well as individuals with business activities, are required to file Forms 1099. This includes self-employed individuals, or individuals with rental properties. The filing deadline is as early as January 31 of each year, so it is important to act quickly.…
The Consolidated Appropriations Act, 2021 (the CAA, 2021), signed into law on December 27, 2020, is a further legislative response to the pandemic. The tax provisions are found in two of the several acts included in the CAA, 2021, specifically, (1) the Taxpayer Certainty and Disaster Tax Relief Act of 2020 (the TCDTR) and (2) the COVID-related Tax Relief Act of 2020 (the COVIDTRA). Following is information on some of…
Now, as year-end approaches, is a good time to think about planning moves that may help lower your tax bill for this year and possibly next. Year-end planning for 2020 takes place against the backdrop of a difficult year with the challenges of the pandemic. New tax rules have been enacted to help mitigate the financial impact of the pandemic, some of which should be considered as part of this…
The CARES Act expanded the Economic Injury Disaster Loan (EIDL) Program, and additionally created the Paycheck Protection Program. Note that you cannot receive both loans – but you can apply for both and decide which one to take if you qualify for both. EIDL Program – This program is administered directly by the SBA. Key features of this program: Loans of up to $2 million. Favorable interest rates Available to…
Following is information on the tax-related provisions in the Coronavirus Aid, Relief, and Economic Security (CARES) Act, Congress’s gigantic economic stimulus package that the President signed into law on March 27, 2020. Recovery rebates for individuals Please find our separate blog post on the recovery rebates here. Waiver of 10% early distribution penalty The additional 10% tax on early distributions from IRAs and defined contribution plans (such as 401(k) plans)…
On March 18, President Trump signed into law the Families First Coronavirus Response Act which eased the compliance burden on businesses. The Act includes the four tax credits and one tax exemption discussed below. Payroll tax credit for required paid sick leave (the payroll sick leave credit) The Emergency Paid Sick Leave Act (EPSLA) division of the Act generally requires private employers with fewer than 500 employees to provide 80…
To help individuals stay afloat during this time of economic uncertainty, the federal government will send payments of up to $1,200 to eligible taxpayers and $2,400 for married couples filing joints returns. An additional $500 payment will be sent to taxpayers for each qualifying child dependent under age 17 (using the Child Tax Credit qualification rules). Rebates are gradually phased out, at a rate of 5% of the individual’s adjusted…
We hope you and your loved ones are managing well during this difficult time. In addition to health concerns, there are also economic concerns. The U.S. federal government has enacted legislation in order to help alleviate some of the economic impact created by COVID-19 and the related restrictions. We have prepared a number of blog posts with some information on the various laws and provisions which may be of benefit…