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PPP Loan Deadline Extended Through May 31

PPP Loan Deadline Extended Through May 31

by | Apr 22, 2021 |

The Paycheck Protection Program Extension Act of 2021 was signed into law on March 31, 2021, extending the deadline to apply for a loan by an extra 60 days, from March 31 to May 31, 2021. The law also gives the Small Business Administration (SBA) an additional 30 days after the May 31 deadline to review and process loan applications. The passage of the PPP Extension Act does not provide additional funding; however, as part of the American Rescue Plan Act, an additional $7.25 billion was earmarked for the Paycheck Protection Program to expand eligibility to additional nonprofits and digital news services. In February 2021, SBA also made four additional changes to open the PPP to more underserved small businesses, generally small and low- and moderate-income (LMI) businesses who have not...

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Q & A: The $10,200 Unemployment Tax Break

Q & A: The $10,200 Unemployment Tax Break

by | Apr 20, 2021 |

Generally, unemployment compensation received under the unemployment compensation laws of the United States or a state is considered taxable income and must be reported on your federal tax return. However, a new tax break - in effect only for the 2020 tax year - lets you exclude the first $10,200 from taxable income. Here's what you should know: What do I need to do to get the tax break? The tax break, which is part of the American Rescue Plan Act of 2021 (ARPA is available to all taxpayers whose 2020 modified adjusted gross income is less than $150,00 and allows you to exclude the first $10,200 of unemployment compensation received in 2020. For joint returns, the first $10,200 per spouse (i.e., $20,400 for two workers who are married filing jointly) is not included in gross income....

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Economic Impact Payments: Round Three

Economic Impact Payments: Round Three

by | Apr 15, 2021 | ,

On March 12, following the American Rescue Plan Act's approval and signing, the IRS began sending out the third round of Economic Impact Payments. Most payments were sent out via direct deposit, but approximately 150,000 checks were mailed by the Treasury Department as well. Taxpayers who received EIP1 or EIP2 but didn't receive a third payment (EIP3) via direct deposit will generally receive a check or, in some instances, a prepaid debit card (EIP Card).   Highlights: The third stimulus payment will generally be larger for most people. Most eligible people will get $1,400 for themselves (those filing joint returns will get $2,800) and $1,400 for each of their qualifying dependents claimed on their tax return. Eligible families will get a payment based on all of their qualifying...

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Highlights of the American Rescue Plan Act

Highlights of the American Rescue Plan Act

by | Apr 13, 2021 |

Signed into law on March 11, 2021, the American Rescue Plan Act (ARPA) contains several tax provisions affecting individuals and families. Let's take a look: Economic Impact Payments (EIP3). A third round of economic impact payments (EIP3) will be sent to qualifying taxpayers; individuals will receive $1,400 ($2,800 for married taxpayers filing jointly) plus $1,400 for each dependent, which includes college students and relatives who can be claimed as dependents. These payments are sent out as advance payments of the recovery rebate credit. Anyone not receiving EIP3 will be able to claim the recovery rebate credit when they file a 2021 tax return next year. There are specific income phaseouts, and eligibility is determined using a taxpayer's 2019 adjusted gross income unless the taxpayer...

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Federal Tax Deadline Extended To May 17

Federal Tax Deadline Extended To May 17

by | Apr 7, 2021 |

The federal income tax filing due date for individual taxpayers, including individuals who pay self-employment tax, has been extended to Monday, May 17, 2021, for the 2020 tax year. There is no need to file any forms to qualify for this automatic federal tax filing and payment relief. Individual taxpayers will automatically avoid interest and penalties on the taxes paid by May 17; however, penalties, interest, and additions to tax will begin to accrue on any remaining unpaid balances as of May 17, 2021. The extended tax return due date applies to any individual who files a federal individual income tax return - or has a federal tax payment reported on one of these forms that would otherwise be due April 15, 2021 - using the Form 1040 series, including Form 1040, 1040-SR, and 1040-PR....

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Integra International Audit & Accounting Alert – March 2021 (Issue 3)

by | Mar 26, 2021 |

ESG Affects CPAs as Well as Their Clients. New reports explore the issues. The last several years appear to have brought more changes in weather, society, and the regulatory atmosphere than I can recall when I began to write the Audit & Accounting Alert nearly ten years ago. There are differing levels of agreement on some of the issues, such as the cause and impact of climate change. Nevertheless, the increased attention during this time frame to the environmental, social and governmental (ESG) aspects of financial reporting should not be a surprise. When first covering the topic in September 2012, the focus was on general concepts and seeking input for developing a framework.

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Capital Gains Tax on Sale of Stocks

Capital Gains Tax on Sale of Stocks

by | Mar 23, 2021 | ,

Apps like Robinhood make it easy for everyone to play the stock market. If you're a retail investor who made money last year buying and selling stocks, you may owe capital gains tax when you file your tax return this year. If you lost money, you may be able to deduct that loss and reduce your income. Here's what you need to know about capital gains tax: Capital Gains and Losses Defined A capital gain or loss is the difference between your basis - the amount you paid for the asset - and the amount you receive when you sell an asset. All capital gains (or losses) must be reported on your tax return. Losses Limited to $3,000 If your capital losses are more than your capital gains, you can deduct the difference as a loss on your tax return to reduce other income, such as wages. This loss is...

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Small Business Tax Roundup

Small Business Tax Roundup

by | Mar 19, 2021 |

Tax changes due to recent legislation such as the Tax Cuts and Jobs Act and the CARES Act affect both individual taxpayers and small businesses. In 2020, the IRS issued several guidance documents and final rules and regulations that clarified several tax provisions affecting businesses. Here are five of them: PPP Expenses Now Deductible Deductions for the payments of eligible expenses are now allowed when such payments would result (or be expected to result) in the forgiveness of a loan (covered loan) under the Paycheck Protection Program (PPP). Previous IRS guidance disallowed deductions for the payment of eligible expenses when the payments resulted (or could be expected to result) in forgiveness of a covered loan. The COVID-related Tax Relief Act of 2020 amended the Coronavirus Aid,...

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Tax Breaks for Families With Children

Tax Breaks for Families With Children

by | Mar 17, 2021 |

If you have children, one or more of these tax credits and deductions could help your family reduce the amount of tax owed when you file your 2020 tax return. Let's take a look: 1. Child Tax Credit Generally, taxpayers can claim the Child Tax Credit for each qualifying child under the age of 17. The maximum credit is $2,000 per child. Taxpayers who get less than the full amount of the credit may qualify for the Additional Child Tax Credit (see below). The refundable portion of the credit is $1,400 so that even if taxpayers do not owe any tax, they can still claim the credit. A $500 nonrefundable credit is also available for dependents who do not qualify for the Child Tax Credit (e.g., dependents age 17 and older). 2. Child and Dependent Care Credit If you pay someone to take care of your...

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