IRS begins delivering third round of Economic Impact Payments to Americans This week, Americans are receiving the third round of Economic Impact Payments (EIP3). Following approval of the American Rescue Plan Act, the first batch of payments are being sent by direct deposit, which some recipients began receiving over the weekend. Additional batches of payments… Read More
Employers may allow participants to carry over unused amounts. New Law Provides Additional Flexibility for Health FSAs and Dependent Care Assistance Programs Due to the pandemic, the IRS is allowing additional flexibility to employee benefit plans offering health flexible spending arrangements (FSAs) or dependent care assistance programs. Under the COVID-related Taxpayer Certainty and Disaster… Read More
Which one should you choose? Deductions reduce the amount of taxable income when filing a federal income tax return. In other words, deductions can reduce the amount of tax you owe. Most taxpayers have a choice of either taking the standard deduction or itemizing their deductions. The standard deduction may be quicker and easier, but… Read More
Last year’s changes may affect your tax return. On February 12, the IRS began processing 2020 tax returns. This year for the first time, Form 1040 and Form 1040-SR are available in Spanish. There are also some other changes and some special circumstances related to COVID-19 that you should think about before filing. People facing… Read More
Answers to Ten FAQs Recent legislation extended and amended tax relief to certain small- and mid-sized employers under the Families First Coronavirus Response Act (FFCRA). The Tax Relief Act of 2020 enacted on December 27, 2020, extends the availability of the tax credits created by the FFCRA to eligible employers for paid sick and family… Read More
Employers who keep workers on payroll may benefit. Employers are urged to take advantage of the newly-extended employee retention credit. The credit is designed to make it easier for businesses that, despite challenges posed by COVID-19, choose to keep their employees on the payroll. The Taxpayer Certainty and Disaster Tax Relief Act of 2020, enacted… Read More
The nation’s tax season will start on Friday, February 12, 2021. There are steps to help speed refunds during the COVID-19 pandemic. The Internal Revenue Service announced that the nation’s tax season will start on Friday, February 12, 2021. This is the date the tax agency will begin accepting and processing 2020 tax year returns.… Read More
The Identity Protection PIN Opt-In Program has been expanded to all taxpayers who can verify their identities. The Identity Protection PIN (IP PIN) is a six-digit code known only to you and the IRS. It helps prevent identity thieves from filing fraudulent tax returns using your personally identifiable information. The IP PIN allows your tax… Read More
Economic impact payments are on the way! As the COVID-19 pandemic continues to ravage the country and many are struggling economically, the IRS and the Treasury Department began issuing a second round of economic impact payments last week. Rather than calling the IRS, your financial institution, or tax software provider, the IRS encourages everyone to… Read More
There are some key items to consider involving credits, deductions, and refunds. This is the third and final in our series of reminders to help you get ready for the upcoming tax filing season. This year, there are some key items to consider involving credits, deductions, and refunds. To make sure you don’t miss out… Read More