IRS Will Recalculate Taxes on 2020 Unemployment Benefits and Start Issuing Refunds in May

Normally, any unemployment compensation someone receives is taxable. However, a recent law change allows some recipients to not pay tax on some 2020 unemployment compensation. The IRS will automatically refund money to eligible people who filed their tax return reporting

The American Rescue Plan Ended the “Cliff” for the Health Insurance Premium Tax Credit.

With the passage of the American Rescue Plan Act of 2021 (ARPA), Congress has temporarily abolished the health insurance premium tax credit “subsidy cliff.” For 2020 and 2021, self-employed and small-business owners and other individuals who must purchase individual health

Face Masks and other PPE to Prevent COVID-19 are Tax Deductible!

The IRS issued guidance clarifying that the purchase of personal protective equipment, such as masks, hand sanitizer and sanitizing wipes, for the primary purpose of preventing the spread of coronavirus are deductible medical expenses. The amounts paid for personal protective

The IRS Officially Delays the 2020 Income Tax Filing and Payment Deadline to May 17, 2021

From the IRS: The Treasury Department and Internal Revenue Service announced today that the federal income tax filing due date for individuals for the 2020 tax year will be automatically extended from April 15, 2021, to May 17, 2021. The

The IRS Will Delay the 2021 Income Tax Filing Deadline to Mid-May

The Internal Revenue Service is extending the tax deadline by a month. According to a breaking news story from USA Today: “While the IRS has not confirmed the date yet, the new federal tax-filing deadline appears to be changing from

PPP Loan Recipients: Take Advantage of the Employee Retention Credit Retroactively!

Before the December 27, 2020, enactment of the new COVID-19 relief law, you may have chosen the Paycheck Protection Program (PPP) loan and given no thought to the employee retention credit. Remember, under the original law, you had to choose

Educators: Out-of-Pocket Expenses for COVID-19 Protective Items are Tax Deductible

Eligible educators can now deduct unreimbursed expenses for COVID-19 protective items to stop the spread of COVID-19 in the classroom. COVID-19 protective items include, but are not limited to: face masks; disinfectant for use against COVID-19; hand soap; hand sanitizer;

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