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CARES Act Overview: The Impact on Taxpayers and Businesses

Posted on March 31st, 2020

CARES Act Overview: The Impact on Taxpayers and Businesses

The Senate has passed and the House is expected to vote Friday on the latest COVID-19 relief bill: Coronavirus Aid, Relief, and Economic Security (CARES) Act. The bill brings with it several elements of relief expected for businesses, employees, and families in an effort to maintain livelihoods throughout the crisis and after. The expected cost of the bill is nearly $2 trillion and includes nearly $500 billion for economic distress relief for companies.

For funding dedicated to taxpayers and businesses, the bill currently includes provisions related to taxes, unemployment, small business loans, and a large business lending program. Below is a summary of what we know so far about the bill. This must still get approved by the House and signed by the President, so some provisions may change. Read More…

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Stay Informed About the Coronavirus — A Comprehensive Guide

Posted on March 20th, 2020

New York City Comprehensive List of Contacts and Agencies for Coronavirus Help

by New York Assemblywoman Linda Rosenthal

My office is fielding many calls from constituents with questions about unemployment insurance. The State is aware that there is a substantial wait time for online or phone inquiries and is actively working to hire more staff to handle the increased demand. More detailed information about unemployment insurance is below.

In addition to the anxiety caused by COVID-19, the social isolation that accompanies the voluntary quarantines and social distancing can cause stress, anxiety and even depression. In addition to changes to vital programs and services listed below, I have also tried to provide access to mental health services. If you or anyone you know is experiencing suicidal thoughts, please contact immediately the National Suicide Prevention Lifeline – 1-800-273-8255. Read More…

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What to Do If You Are Missing Important Tax Forms

Posted on March 5th, 2020

If you are ready to file your taxes but are missing important tax forms here’s what you should do: Read More…

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Home Equity Loan Interest Still Deductible

Posted on March 5th, 2020

The Tax Cuts and Jobs Act has resulted in questions from taxpayers about many tax provisions including whether interest paid on home equity loans is still deductible. The good news is that despite newly-enacted restrictions on home mortgages, taxpayers can often still deduct interest on a home equity loan, home equity line of credit (HELOC) or second mortgage, regardless of how the loan is labeled. Read More…

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Are Social Security Benefits Taxable?

Posted on March 4th, 2020

Social Security benefits include monthly retirement, survivor, and disability benefits; they do not include Supplemental Security Income (SSI) payments, which are not taxable.

Generally, you pay federal income taxes on your Social Security benefits only if you have other substantial income in addition to your benefits such as wages, self-employment, interest, dividends and other taxable income that must be reported on your tax return. Read More…

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Tax Treatment of State and Local Tax Refunds

Posted on March 4th, 2020

The Tax Cuts and Jobs Act (TCJA), enacted in December 2017, limited the itemized deduction for state and local taxes to $5,000 for a married person filing a separate return and $10,000 for all other tax filers. The limit applies to tax years 2018 to 2025.

As in prior years, if a taxpayer chose the standard deduction then state and local tax refunds are not subject to tax. However, if a taxpayer itemizes deductions for that year on Schedule A, Itemized Deductions, part or all of the refund may be subject to tax – but only to the extent that the taxpayer received a tax benefit from the deduction. Read More…

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Worker Classification: Employee vs. Contractor

Posted on March 3rd, 2020

If you hire someone for a long-term, full-time project or a series of projects that are likely to last for an extended period, you must pay special attention to the difference between independent contractors and employees. Read More…

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Form 8962: Reconciling the Premium Tax Credit

Posted on March 3rd, 2020

Form 8962, Premium Tax Credit, reconciles 2019 advance payments of the premium tax credit and may also affect a taxpayer’s ability to get advance payments of the premium tax credit or cost-sharing reductions. Taxpayers who don’t file and reconcile their 2019 advance credit payments may not be eligible for advance payments of the premium tax credit in the future. Furthermore, filing Form 8962, with a return avoids possible delays in processing tax returns and subsequent delays in receiving tax refunds. Read More…

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It’s Not Too Late to Make an IRA Contribution

Posted on March 2nd, 2020

If you haven’t contributed funds to an Individual Retirement Account (IRA) for tax year 2019, or if you’ve put in less than the maximum allowed, you still have time to do so. You can contribute to either a traditional or Roth IRA until the April 15th due date, not including extensions. Read More…

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New Tax Law Affects Tax-Exempt Organizations

Posted on March 2nd, 2020

The Taxpayer Certainty and Disaster Tax Relief Act, passed on December 20, 2019, includes several provisions that may apply to tax-exempt organizations’ current and previous tax years. As such, tax-exempt organizations should understand how these recent tax law changes might affect them. With this in mind, let’s take a look at three key pieces of legislation that affect nonprofit organizations: Read More…

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Tax Due Dates 2021

Tax Due Dates for March 2020

Posted on March 1st, 2020

MARCH 2

Farmers and Fishermen – File your 2019 income tax return (Form 1040) and pay any tax due. However, you have until April 15 to file if you paid your 2019 estimated tax by January 15, 2020.

Health Coverage Reporting – If you are an Applicable Large Employer, provide Form 1095-C, Employer-Provided Health Insurance Offer and Coverage, to full-time employees. For all other providers of minimum essential coverage, provide Form 1095-B, Health Coverage, to responsible individuals.

Large Food and Beverage Establishment Employers – with employees who work for tips. File Form 8027, Employer’s Annual Information Return of Tip Income and Allocated Tips. Use Form 8027-T, Transmittal of Employer’s Annual Information Return of Tip Income and Allocated Tips, to summarize and transmit Forms 8027 if you have more than one establishment. If you file Forms 8027 electronically your due date for filing them with the IRS will be extended to March 31.

MARCH 10

Employees who work for tips – If you received $20 or more in tips during February, report them to your employer. You can use Form 4070.

MARCH 16

Employers – Nonpayroll withholding. If the monthly deposit rule applies, deposit the tax for payments in February.

Employers – Social Security, Medicare, and withheld income tax. If the monthly deposit rule applies, deposit the tax for payments in February.

Partnerships – File a 2019 calendar year income tax return (Form 1065). Provide each partner with a copy of their Schedule K-1 (Form 1065-B) or substitute Schedule K-1. To request an automatic 6-month extension of time to file the return, file Form 7004. Then file the return and provide each partner with a copy of their final or amended (if required) Schedule K­1 (Form 1065) by September 15.

S Corporations – File a 2019 calendar year income tax return (Form 1120S) and pay any tax due. Provide each shareholder with a copy of Schedule K-1 (Form 1120S), Shareholder’s Share of Income, Credits, Deductions, etc., or a substitute Schedule K-1. If you want an automatic 6-month extension of time to file the return, file Form 7004 and deposit what you estimate you owe in tax.

S Corporation Election – File Form 2553, Election by a Small Business Corporation, to choose to be treated as an S Corporation beginning with calendar year 2020. If Form 2553 is filed late, S corporation treatment will begin with calendar year 2021.

MARCH 31

Electronic Filing of Forms – File Forms 1097, 1098, 1099 (except Form 1099-MISC), 3921, 3922, and W-2G with the IRS. This due date applies only if you file electronically. The due date for giving the recipient these forms generally remains January 31.

Electronic Filing of Form W-2G – File copies of all the Form W-2G (Certain Gambling Winnings) you issued for 2019. This due date applies only if you electronically file. The due date for giving the recipient these forms remains January 31.

Electronic Filing of Forms 8027 – File copies of all the Forms 8027 you issued for 2019. This due date applies only if you electronically file.

Electronic Filing of Forms 1094-C and 1095-C and Forms 1094-B and 1095-B – If you’re an Applicable Large Employer, file electronic forms 1094-C and 1095-C with the IRS. For all other providers of minimum essential coverage, file electronic Forms 1094-B and 1095-B with the IRS.

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New Rules for Depreciation and Expensing of Qualified Property

Posted on March 1st, 2020

As part of final guidance issued that pertains to the Tax Cuts and Jobs Act of 2017, new rules and limitations are in effect for taxpayers who deduct depreciation for qualified property acquired and placed in service after September 27, 2017, and, as a business owner, they could affect your tax situation. Let’s take a closer look: Read More…

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Are Tips Taxable? | Reporting Tip Income: The Basics

Posted on March 1st, 2020

The short answer is yes, tips are taxable. If you work at a hair salon, barbershop, casino, golf course, hotel, or restaurant, or drive a taxicab, then the tip income you receive as an employee from those services is taxable income. Here are a few other tips about tips: Read More…

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