Tax credits can help offset the cost of higher education. Whether it’s online, in-person, part-time, or full-time, higher education can be expensive. The good news is there are tax credits that can help offset these costs. These credits reduce the amount of tax someone owes. If the credit reduces the tax to less than zero,… Read More
COVID-19 Forces Millions of Americans to Rely on Unemployment Compensation Many Receiving Unemployment Compensation for the First Time Due to the COVID-19 pandemic, millions of Americans are now receiving taxable unemployment compensation, many of them for the first time. Here at Bayshore CPA’s, we want to remind people receiving unemployment compensation that it is taxable.… Read More
What you should do if you receive a notice from the IRS in the mail First, do not panic. The IRS uses letters to communicate with taxpayers about IRS audits and other tax-related issues. These notices affect most taxpayers in the same way. They cause you to feel fear, anxiety, and often embarrassment. As a… Read More
Final regulations related to business interest expense deduction limitation Final regulations are out regarding the provision of the Tax Cuts and Jobs Act that limits the deduction for business interest expense, including basic statutory amendments made by the CARES Act. For tax years beginning after December 31, 2017, business interest expense deductions are generally limited… Read More
Cyber Thieves are active during COVID-19. Protect your data. With cyber thieves active during COVID-19, we as tax professionals must be diligent in reviewing critical security steps to ensure we as an industry are fully protecting client data whether working in the office or a remote location. Many business owners have expanded telework options this… Read More
Today is Tax Day 2020. File or extend your 2019 federal tax return before midnight! COVID-19 Related Changes to Retirement Plans The CARES Act provides relief for taxpayers affected by COVID-19 who take distributions or loans from retirement plans. Qualified individuals affected by COVID-19 may be able to withdraw up to $100,000 from their eligible… Read More
You should plan on scheduling multiple payments now. As the 2019 tax filing and payment deadline approaches, taxpayers and businesses need to be aware that 2019 income tax liabilities as well as postponed April 15 and June 15, 2020, estimated tax payments are due July 15, 2020. This postponement provided temporary tax relief in response… Read More
The tax filing and payment deadline of July 15 will not be postponed. The Department of the Treasury and IRS announced the tax filing and payment deadline of July 15 will not be postponed. Individual taxpayers unable to meet the July 15 due date can request an automatic extension of time to file until October 15,… Read More
New rules under the CARES Act provide flexibility for health care spending. These new rules may be helpful in the current COVID-19 environment where more people may need at-home services due to measures to fight the coronavirus. Telehealth and High Deductible Health Plans Under the CARES Act, a high deductible health plan (HDHP) temporarily can… Read More
The IRS has authorized temporary changes to Section 125 Cafeteria Plans. These changes extend the claims period for health flexible spending arrangements (FSAs) and dependent care assistance programs and allow taxpayers to make mid-year changes. This authorization addresses unanticipated changes in expenses because of the 2019 Novel Coronavirus (COVID-19) pandemic and provides that previously provided… Read More