PPP and COVID-19 Tax Updates and Information

Blog

Open Mon-Fri, 9am-5pm
Office: (212) 279-9800
info@robertprussocpa.com

Client Portal

Federal Tax Deadline Extended To May 17 — The Details

Posted on April 6th, 2021

The federal income tax filing due date for individual taxpayers, including individuals who pay self-employment tax, has been extended to Monday, May 17, 2021, for the 2020 tax year. There is no need to file any forms to qualify for this automatic federal tax filing and payment relief. Read More…

Tags: ,

«

Include Gig Economy Income on Tax Returns

Posted on April 5th, 2021

The gig economy is also referred to as the on-demand, sharing, or access economy. People involved in the gig economy earn income as a freelancer, independent worker or employee. Typically, an online platform is used to connect people with potential or actual customers to provide goods or services. Examples include renting out a home or spare bedroom and providing meal delivery services or rides. Read More…

Tags: , ,

« »

Highlights of the American Rescue Plan Act Information

Posted on April 4th, 2021

Signed into law on March 11, 2021, the American Rescue Plan Act (ARPA) contains several tax provisions affecting individuals and families. Let’s take a look: Read More…

Tags: , , , , , , ,

« »

Self-Employed Can Claim Sick & Family Leave Tax Credit

Posted on April 4th, 2021

A new form is available for self-employed individuals to claim sick and family leave tax credits under the Families First Coronavirus Response Act (FFCRA). The FFCRA, passed in March 2020, allows eligible self-employed individuals who, due to COVID-19, are unable to work or telework for reasons relating to their own health or to care for a family member to claim refundable tax credits to offset their federal income tax. Read More…

Tags: , , ,

« »

Coronavirus-Related Distributions and Loans

Posted on April 3rd, 2021

The Coronavirus, Aid, Relief, and Economic Security (CARES) Act made it easier to access savings in IRAs and workplace retirement plans for those affected by the coronavirus. This relief provided favorable tax treatment for certain withdrawals from retirement plans and IRAs, including expanded loan options. Read More…

Tags: , , , ,

« »

Q & A: The $10,200 Unemployment Tax Break

Posted on April 2nd, 2021

Generally, unemployment compensation received under the unemployment compensation laws of the United States or a state is considered taxable income and must be reported on your federal tax return. However, a new tax break — in effect only for the 2020 tax year — lets you exclude the first $10,200 from taxable income. Here’s what you should know: Read More…

Tags: , , ,

« »

Personal Protective Equipment Qualifies for Deduction

Posted on April 2nd, 2021

As a quick reminder, the purchase of personal protective equipment, such as masks, hand sanitizer, and sanitizing wipes, for the primary purpose of preventing the spread of coronavirus are deductible medical expenses. Read More…

Tags: , , ,

« »

PPP Loan Deadline Extended Through May 31

Posted on April 1st, 2021

The Paycheck Protection Program Extension Act of 2021 was signed into law on March 31, 2021, extending the deadline to apply for a loan by an extra 60 days, from March 31 to May 31, 2021. The law also gives the Small Business Administration (SBA) an additional 30 days after the May 31 deadline to review and process loan applications. Read More…

Tags: , , ,

« »

Donating a Car To Charity as a Tax Write-Off — Special Rules

Posted on April 1st, 2021

If you donate a car to a qualified charitable organization and intend to claim a deduction, you should be aware of the special rules that apply to vehicle donations. Read More…

Tags:

« »

Tax Due Dates for April 2021

Posted on April 1st, 2021

NOTE:

The 2021 April 15 tax filing deadline has been extended to May 17, 2021. Please check the IRS website for more information or contact Russo CPA for help.

 

April 12

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

 

April 15

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

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

Individuals – If you are not paying your 2021 income tax through withholding (or will not pay in enough tax during the year that way), pay the first installment of your 2021 estimated tax. Use Form 1040-ES.

Corporations – File a 2020 calendar year income tax return (Form 1120) and pay any tax due. 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 taxes.

Corporations – Deposit the first installment of estimated income tax for 2021. A worksheet, Form 1120-W, is available to help you estimate your tax for the year.

 

April 30

Employers – Federal unemployment tax. Deposit the tax owed through March if more than $500.

Employers – Social Security, Medicare, and withheld income tax. File form 941 for the first quarter of 2021. Deposit any undeposited tax. (If your tax liability is less than $2,500, you can pay it in full with a timely filed return.) If you deposited the tax for the quarter in full and on time, you have until May 10 to file the return.

Tags: ,

« »

Avoiding an IRS Tax Audit

Posted on March 4th, 2021

Just 0.45 percent of taxpayers were audited in the fiscal year 2019. Still, with taxes becoming more complicated every year, there is an even greater possibility of confusion turning into a tax mistake and an IRS audit. Avoiding “red flags” like the ones listed below could help. Read More…

Tags:

« »

Tax Credits for Electric Vehicles and Plug-in Hybrids

Posted on March 4th, 2021

Tax credits are still available for Qualified Plug-in Electric Drive Motor Vehicles, including passenger vehicles and light trucks. The credit applies to vehicles acquired after 12/31/2009 and is limited to $7,500. State and/or local incentives may also apply. Read More…

Tags: ,

« »

Special Tax Rules for Children With Investment Income

Posted on March 3rd, 2021

Special tax rules may apply to some children who receive investment income. The rules may affect the amount of tax and how to report the income. Here are five important points to keep in mind if your child has investment income this year: Read More…

Tags: ,

« »

Tax Breaks for Families With Children

Posted on March 2nd, 2021

If you have children, one or more of these tax credits and deductions could help your family reduce the amount of tax owed. Let’s take a look: Read More…

Tags: ,

« »

Claiming the Credit for Other Dependents

Posted on March 2nd, 2021

Taxpayers with dependents who don’t qualify for the child tax credit may be able to claim the credit for other dependents. The maximum credit amount is $500. To take the credit, your dependent must meet certain conditions. Read More…

Tags: ,

« »