PPP and COVID-19 Tax Updates and Information

Blog

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

Client Portal

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: , , ,

« »

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: ,

« »

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: ,

« »

The 2021 Employee Retention Credit Explained

Posted on February 4th, 2021

When Congress passed the CARES Act in March 2020, most businesses took advantage of the Paycheck Protection Program (PPP) loan to help keep them afloat.

Congress also authorized a second option to help employers—an employee retention credit fully refundable against the business’s payroll tax liabilities.

Since a business could do only one or the other, many businesses passed on the employee retention credit. Read More…

Tags: , ,

« »

Employer Tax Credit Extended for Payroll Workers

Posted on February 2nd, 2021

The Taxpayer Certainty and Disaster Tax Relief Act of 2020, enacted December 27, 2020, made several changes to employee retention tax credits. These tax credits were previously made available under the Coronavirus Aid, Relief, and Economic Security Act (CARES Act). The most notable change was the modification of the Employee Retention Credit (ERC). Several of the changes apply only to 2021, while others apply to both 2020 and 2021. As such, employers can take advantage of the newly-extended employee retention credit, designed to make it easier for businesses that choose to keep their employees on the payroll – despite challenges posed by COVID-19. Read More…

Tags: , , ,

« »

Who Qualifies for the Earned Income Credit

Posted on February 1st, 2021

The earned income tax credit can give qualifying workers with low-to-moderate income a substantial financial boost. The credit not only reduces the amount of tax someone owes but may give them a refund even if they don’t owe any taxes or aren’t required to file a return. If you lost your job in 2020 or your earnings were significantly lower, you may qualify for the earned income tax credit; however, taxpayers must meet certain requirements and file a federal tax return in order to receive this credit. Here’s what you need to know Read More…

Tags: ,

« »

Business Tax Provisions: The Year in Review

Posted on December 6th, 2020

Here’s what business owners need to know about tax changes for 2020.

Standard Mileage Rates
The standard mileage rate in 2020 is 57.5 cents per business mile driven.

Health Care Tax Credit for Small Businesses
Small business employers who pay at least half the premiums for single health insurance coverage for their employees may be eligible for the Small Business Health Care Tax Credit as long as they employ fewer than the equivalent of 25 full-time workers and average annual wages do not exceed $50,000 (adjusted annually for inflation). This amount is $55,200 for 2020 returns. Read More…

Tags: , , , , ,

« »

2 Ways to Avoid Massive Taxes When Selling a Rental Property

Posted on September 1st, 2020

If you own a rental property (and live there, too) you have 2 fantastic opportunities to reduce taxes on capital gains when selling a rental property.  Read More…

Tags: ,

« »

employee retention credit

Employee Retention Credit Deadline July 31

Posted on July 5th, 2020

As a reminder, employers whose business has been financially impacted by COVID-19 can take advantage of the Employee Retention Credit, a refundable tax credit designed to encourage businesses to keep employees on their payroll. The credit is worth 50 percent of up to $10,000 in wages paid by an employer. Employers that are eligible for the credit for the first and second quarters of 2020, can apply for the credit when they file their second-quarter filing of Form 941, Employer’s Quarterly Federal Tax Return which is due July 31. Read More…

Tags: , , ,

« »

COVID-19 Tax News

Self-Employment COVID-19 Relief and Tax Benefits

Posted on May 6th, 2020

If you are in business for yourself—say, as a corporation or self-employed—payroll taxes and self-employment taxes are likely two of your biggest tax burdens.

Here’s some possible good news: Congress decided to give you significant relief from these taxes due to the COVID-19 pandemic. We’ll tell you what relief options are available and whether or not you qualify. Read More…

Tags: , , , , ,

« »

9 Useful Facts About the Adoption Tax Credit

Posted on May 3rd, 2020

Parents who adopted or started the adoption process during 2019 may qualify for the adoption credit. Generally, the credit is allowable whether the adoption is domestic or foreign. However, the timing rules for claiming the credit for qualified adoption expenses differ, depending on the type of adoption. Read More…

Tags:

« »

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…

Tags: ,

« »

Tax Tips for Owners of Historic Buildings

Posted on November 1st, 2019

If you own a historic building you should know about a tax credit called the rehabilitation tax credit, which offers an incentive to renovate and restore old or historic buildings. Read More…

Tags: ,

« »