2021 – 07/16 Direct deposit refunds began rolling out on July 14 to millions of taxpayers who overpaid taxes on their 2020 unemployment compensation. Paper check refunds are also being mailed out. Generally, unemployment compensation is taxable income. In response to COVID-19, the American Rescue Plan Act allows taxpayers to exclude up to $10,200 in 2020 unemployment compensation, or $20,400 for couples filing married jointly (subject to income limits). Taxpayers who filed their 2020 tax returns before the new law was passed may have overpaid their federal taxes. The IRS has advised taxpayers that no action is needed. The IRS will automatically adjust their returns and refund overpayments.
Similar Posts
Large cash transactions with your business must be reported to the IRS
2021 – 08/09 If your business receives large amounts of cash or cash equivalents, you may be required to report these transactions to the IRS. What are the requirements? Each person who, in the course of operating a trade or business, receives more than $10,000 in cash in one transaction (or two or more related…
IRS Non-Filer Sign-Up Tool
2021 – 06/29 The IRS has been clear that taxpayers who qualify for the advance child tax credit (CTC) don’t need to take action to receive the payments. However, for those who qualify but didn’t file income tax returns in 2019 and 2020, payments may be delayed. There’s a simple solution. That is, use the…
Passports Revoked Due to Tax Debt
2021 – 03/22 The IRS has resumed a program under which the U.S. State Department can revoke taxpayers’ passports. Having a “seriously delinquent tax debt” is (unless an exception applies) grounds for denial, revocation or limitation of a passport. If the IRS determines a taxpayer has a serious delinquent tax debt, it will “certify” that…
Prudent technology upgrades call for some soul searching
2022 – 02/16 By now, most business owners view technology upgrades as inevitable. Whether hardware or software, the tech your company relies on to operate will need to change slightly or even drastically for you to stay competitive. Strange as it may sound, technology upgrades demand a bit of soul searching. That is, before spending…
Changes to premium tax credit could increase penalty risk for some businesses
2021 – 04/14 The premium tax credit (PTC) is a refundable credit that helps individuals and families pay for insurance obtained from a Health Insurance Marketplace (commonly known as an “Exchange”). A provision of the Affordable Care Act (ACA) created the credit. The American Rescue Plan Act (ARPA), signed into law in March 2021, made…
Is an LLC the right choice for your small business?
2021 – 08/02 Perhaps you operate your small business as a sole proprietorship and want to form a limited liability company (LLC) to protect your assets. Or maybe you are launching a new business and want to know your options for setting it up. Here are the basics of operating as an LLC and why…