2020 Tax Return Update

04-05-2021Tax Information

As we begin the month of April, please be assured your 2020 income tax return has been prepared and is awaiting CPA review. You should expect to hear from us soon.

With some of the tax law changes that happened in 2021 that affected 2020, we have been awaiting guidance from the IRS for updated forms and how to report certain items correctly the first time. The tax returns become more complex (e.g., reconciling stimulus payments, cryptocurrency, due diligence reporting for tax credits, etc.) each year and we are attempting to keep everyone in compliance.

READ MORE

What to Do if You are Still Waiting on the Second Coronavirus Economic Stimulus Payment

01-05-2021Tax Information

You can check the status of both your payments by using the IRS Get My Payment tool. If you have not received your full payment by the time you file your 2020 tax return, you may claim the Recovery Rebate Credit.

For more information, click HERE.

Significant Tax Changes

12-29-2020Tax Information

Here is a review of significant changes that may impact you for the tax year 2020 filing season from the:

READ MORE

Are expenses paid with PPP loan proceeds deductible?

11-19-2020Tax Information

The U.S. Treasury Department and Internal Revenue Service (IRS) released guidance yesterday (November 18, 2020) clarifying the tax treatment of expenses where a Paycheck Protection Program (PPP) loan has not been forgiven by the end of the year the loan was received. 

Since businesses are not taxed on the proceeds of a forgiven PPP loan, the expenses are not deductible. This results in neither a tax benefit nor tax harm since the taxpayer has not paid anything out of pocket.

READ MORE

IRS view of Vacation Home Losses

10-22-2020Tax Information

Generally, if you rent out a vacation home while you not using it personally, you can deduct expenses to offset taxable income from the rental.  This includes mortgage interest, property taxes, repairs, utilities, insurance, etc. (Mortgage interest and property taxes are subject to additional rules for a qualified personal residence). 

You might even be able to deduct a loss on your income tax return in that year if your personal use of the vacation home does not exceed the greater of (a) 14 days or (b) 10% of the time the home is rented out.

READ MORE

Refund Status and Tax Withholding Tools

07-23-2020Tax Information

The original tax filing deadline has passed.  Here are a couple of resources available for individual tax payers to get quick answers for yourself for free.

Refund Status
You can check on your refund using the IRS Where’s My Refund? tool. It is available on IRS.gov and the IRS2Go app.   If you do not have access to a computer can call 800-829-1954.  The tool updates once daily, so there’s no need to check more often.  You will need:

READ MORE

My dead relative received a stimulus check. What do I do?

05-10-2020Tax Information

On May 6, 2020, the IRS came out with the following guidance for Economic Stimulus checks sent to dead people.  The whole answer is at www.irs.gov/coronavirus/economic-impact-payment-information-center#more (See question 41)

In summary,

A Payment made to someone who died before receipt of the Payment should be returned to the IRS in full.  For payments made to joint filers and one spouse had not died before receipt of the Payment, you only need to return the portion of the Payment made on account of the decedent. This amount will be $1,200 unless adjusted gross income exceeded $150,000.

READ MORE

IRS Economic impact payments: What you need to know

03-31-2020Tax Information

The Treasury Department is working on a web-based portal (www.irs.gov) that will allow individuals to submit direct deposit details in order to “receive payments immediately as opposed to checks in the mail.”  Treasury Secretary Steven Mnuchin said Friday that people can expect to receive their checks in three weeks – April 17 is when the direct deposits will go into people’s accounts.  A check in the mail could take longer.

READ MORE

IRS Economic impact payments: What you need to know

03-31-2020Tax Information

The Treasury Department is working on a web-based portal (www.irs.gov) that will allow individuals to submit direct deposit details in order to “receive payments immediately as opposed to checks in the mail.”  Treasury Secretary Steven Mnuchin said Friday that people can expect to receive their checks in three weeks – April 17 is when the direct deposits will go into people’s accounts.  A check in the mail could take longer.

READ MORE