New Guidance on the Employee Retention Credit
With the 2021 tax filing season underway, it is important for taxapyers to review their tax saving opportunities, especially as they relate to the Employee Retention Tax Credit (ERC). Overview of the Employee Retention Credit Since enacted in March 2020 as...
Your Earned Self-Employment Income May Qualify for Tax Credits
Passed under the Families First Coronavirus Response Act (FFCRA), eligible self-employed individuals may claim a tax credit for sick or family leave taken between April 1, 2020 and March 31, 2021 or if taken between April 1, 2021 through September 30, 2021. Form 7202...
When are you considered a Household Employer?
In today’s world it is common to have domestic help; from gardeners and housekeepers to nannies and home health care assistance. The question is, when does this situation turn into an employer and employee relationship and what are the filing requirements and...
IRS Sets New R&D Credit Documentation Requirements For Credit Refund Claims
On January 3, 2022, the Internal Revenue Service (IRS) Office of Chief Counsel released Interim Guidance stating that taxpayers will be required to include additional documentation for a research credit claim for refund to be considered valid. Specifically, the new...
2022 Cost of Living Adjustments for Credits and Contributions
The IRS announced 2022 cost-of-living adjustments for the following: Retirement Account Contributions 401(k) plans are increased to $20,500 (up from $19,500 in 2020/2021) Catch up contributions are unchanged at $6,500 for those age 50 and older Annual contributions to...
Special Charitable Deductions in 2021
In years past, charitable donations were only beneficial to individuals who itemized their deductions. To itemize, single or married filing separately and married filing jointly taxpayers’ deductions must exceed the standard deduction of $12,400 or $24,800,...
California SALT Cap Workaround (AB 150)
The Tax Cuts and Jobs Act (TCJA) passed in late 2017 put a $10,000 limit on the amount of state taxes individuals could subtract as itemized deductions. As a workaround, some states have enacted legislation to allow certain pass-through entities (PTEs) to be taxed at...
Things to do before the end of 2021
This is the time of year to do some year end tax planning and implement some of those ideas before December 31st. With tax law changes looming from congress there are some things that may be implemented retroactively to Sept 14, 2021 and others that are expected to...
Updates on New CA Tax Credits Coming Soon
Main Street Small Business Tax Credit II California enacted legislation for the Main Street Small Business Tax Credit II to support taxpayers impacted by the economic troubles in tax years 2020 & 2021. Like the Main Street Small Business Tax Credit...
Expanded Child Tax Credits and Child Care Credits for 2021
The American Rescue Plan Act of 2021 passed in March has expanded the Child and Dependent Care and Child Tax Credits available for the 2021 tax year. Child Tax Credit The total credit is up to $3,000 per qualifying child ages 6-17 at the end of 2021. For...