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Tax Return Tips for Last-Minute Filers

Posted on May 5th, 2021

When it comes to working on your taxes, earlier is better, but many people find preparing their tax return to be stressful and frustrating and wait until the last minute. Complicating matters this year is tax reform and the newly redesigned Form 1040. If you’ve been procrastinating on filing your tax return this year, here are eight tips that might help. Read More…

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File on Time – Even if You Can’t Pay

Posted on May 5th, 2021

Generally, taxpayers should file their tax returns by the deadline even if they cannot pay the full amount due, but if you can’t, there are several options. Let’s take a look at a few scenarios: Read More…

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Tax Withholding for Seasonal and Part-Time Employees

Posted on May 4th, 2021

Many businesses hire part-time or full-time workers, especially in the summer. The IRS classifies these employees as seasonal workers, defined as an employee who performs labor or services on a seasonal basis (i.e., six months or less). Examples of this kind of work include retail workers employed exclusively during holiday seasons, sports events, or during the harvest or commercial fishing season. Part-time and seasonal employees are subject to the same tax withholding rules that apply to other employees. Read More…

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Common Errors To Avoid When Filing a Tax Return

Posted on May 4th, 2021

While not all mistakes on tax returns cause delays in refunds, some do. As the May 17 deadline approaches, it pays to steer clear of the ten tax return errors listed below. Read More…

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Saving for Education: Understanding 529 Plans

Posted on May 3rd, 2021

Many parents are looking for ways to save for their child’s education, and a 529 Plan is an excellent way to do so. Even better is that thanks to the passage of tax reform legislation in 2017, 529 plans are now available to parents wishing to save for their child’s K-12 education as well as college (two and four-year programs) or vocational school. Read More…

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Refunds for Nontaxable Unemployment Compensation

Posted on May 3rd, 2021

The IRS is automatically refunding money to eligible people who filed their tax returns reporting unemployment compensation before the recent changes made by the American Rescue Plan. Read More…

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Avoiding Tax Surprises When Retiring Overseas

Posted on May 2nd, 2021

Are you approaching retirement age and wondering where you can retire to make your retirement nest egg last longer? Retiring abroad may be the answer. But first, it’s important to look at the tax implications because not all retirement country destinations are created equal. Read More…

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Recovery Rebate Credit May Be Different Than Expected

Posted on May 2nd, 2021

Some taxpayers who claim the 2020 Recovery Rebate Credit (RRC) on their 2020 tax returns are discovering that they may be getting a different amount than they expected. Let’s take a closer look at why this is happening. Read More…

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Deducting Business-Related Car Expenses

Posted on May 1st, 2021

If you’re self-employed and use your car for business, you can deduct certain business-related car expenses. There are two options for claiming deductions: Read More…

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employee retention credit

Deductions for Food or Beverages From Restaurants

Posted on May 1st, 2021

Beginning January 1, 2021, and extending through December 31, 2022, businesses can claim 100% of their food or beverage expenses paid to restaurants as long as the business owner (or an employee of the business) is present when food or beverages are provided, and the expense is not lavish or extravagant under the circumstances. Read More…

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Tax Due Dates for May 2021

Posted on May 1st, 2021

May 10

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

 

Employers – Social Security, Medicare, and withheld income tax. File Form 941 for the first quarter of 2021. This due date applies only if you deposited the tax for the quarter in full and on time.

May 17

Individuals – File an income tax return for 2020 and pay any tax due. If you want an automatic 6-month extension of time to file the return, file Form 4868, Application for Automatic Extension of Time To File U.S. Individual Income Tax Return or you can get an extension by phone if you pay part or all of your estimate of income tax due with a credit card. Then file Form 1040 by October 15.

Household Employers – If you paid cash wages of $2,200 or more in 2020 to a household employee, file Schedule H (Form 1040) with your income tax return and report any employment taxes. Report any federal unemployment (FUTA) tax on Schedule H if you paid total cash wages of $1,000 or more in any calendar quarter of 2019 or 2020 to household employees. Also, report any income tax you withheld for your household employees.

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

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

Please contact us for help.

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