Take a $300 Charitable Deduction Thanks to the CARES Act
With the CARES (Coronavirus Aid, Relief, and Economic Security) Act, passed in April 2020, a certain portion of your charitable contributions may now be deductible for tax year 2020.
Need to Know: 2021 Retirement Plan Income Ranges and Tax Brackets Adjusted for Inflation
Each year, the IRS adjusts income thresholds, deduction amounts and tax tables for inflation using the Chained Consumer Price Index (C-CPI) as the basis for its changes. The adjustments recently announced will affect your 2021 deduction limits and tax brackets (for returns filed by April 2022).
Are You Taking Advantage of These 3 COVID-Related Business Tax Credits?
Put into place to help small business owners during the COVID-19 crisis, these tax credits may help you reduce your business’s financial burden:
PPP Loan Forgiveness: Is It Time to File?
Is it time to file for PPP loan forgiveness? The quick answer: Probably not yet. Ideally, you don’t want to file for loan forgiveness until the questions surrounding tax deductibility and automatic forgiveness are resolved.
How to Reduce Higher Education Costs with Tax Credits
If you, your spouse or your dependent child takes college classes — whether online or in-person, part-time or full-time — you may be able to offset some of the costs with tax credits. These credits reduce the amount of tax you owe. And if the credit reduces your tax to less than zero, you could even receive a refund.
Is Your “Side Hustle” a Hobby or a Business?
With a little extra time at home on your hands this year, you may have taken up a new hobby — maybe selling photographs, creating skin-care products or trading antiques — whether for fun or to make a few extra bucks. But is it just a hobby? Maybe you’re thinking it could turn into a new business venture. What’s the difference? And how does it affect your taxes?
Working from Home? Here’s What You Need to Know About Taxes
Thanks to COVID-19, you may find yourself working from home — whether for the first time or more often than before. So can you claim a home office deduction when you file your 2020 tax return next year? First of all, if you are an employee, you are NOT eligible to claim the home office deduction. You may be able to deduct a few expenses, but these are very limited.
COVID-Related Payroll Tax Deferral Raises Questions
In an effort to reduce the burden on workers, President Trump signed a memorandum on August 8 providing for the deferral of payroll taxes from September 1 through December 31, 2020. The new rule defers the employee portion of the old-age, survivors and disability insurance (OASDI) tax and Railroad Retirement Act Tier 1 tax for those whose pretax biweekly wages are generally less than $4,000.
The Rules Keep Changing: What You Need to Know About PPP Loans
With new legislation being debated and constantly updated, it seems, the rules regarding Paycheck Protection Program (PPP) loans and loan forgiveness keep changing. So the current advice from experts is: Don’t rush into anything!