Categories
Uncategorized

New Exclusion of up to $10,200 of Unemployment Compensation

New Exclusion of up to $10,200 of Unemployment Compensation According to the IRS, if your modified adjusted gross income (AGI) is less than $150,000, the American Rescue Plan enacted on March 11, 2021, excludes from income up to $10,200 of unemployment compensation paid in 2020. This means you do not have to pay tax on […]

Categories
Uncategorized

IRS begins delivering third round of Economic Impact Payments to Americans

Source: IRS IR-2021-54 IRS begins delivering third round of Economic Impact Payments to Americans WASHINGTON – The Internal Revenue Service announced today that the third round of Economic Impact Payments will begin reaching Americans over the next week. Following approval of the American Rescue Plan Act, the first batch of payments will be sent by […]

Categories
Uncategorized

New Coronavirus Stimulus Signed into Law, Includes Tax Breaks for Individuals

New Coronavirus Stimulus Signed into Law, Includes Tax Breaks for Individuals President Biden has signed into law the new economic relief package passed by the House of Representatives and Senate on Wednesday. The American Rescue Plan (ARP) Act provides a wide array of tax-related benefits for individuals. Following is a brief … Source: Ken Berry, […]

Categories
Uncategorized

Tips to help people choose a reputable tax preparer (Tax Attorney, CPA and EA)

IRS: Tax Tip 2020-14 Tips to help people choose a reputable tax preparer ( Tax Attorney, CPA and EA) Whether taxpayers regularly use a tax professional to help them file a tax return or they have decided to work with one for the first time, it is important to choose a tax return preparer wisely. Taxpayers […]

Categories
Uncategorized

Tips to help taxpayers spot and avoid tax scams

IRS Tax Tip 2021-30 Tips to help taxpayers spot and avoid tax scams Tax season is also busy season for savvy criminals. Scammers impersonating the IRS either over-the-phone, by email or in-person can steal money from people. All taxpayers should stay vigilant against these schemes. Here are some tips to help people recognize and avoid: […]

Categories
Uncategorized

The first step of tax preparation is gathering records

Source IRS COVID Tax Tip 2021-16 The first step of tax preparation is gathering records As taxpayers get ready to file their 2020 tax return, they should start by gathering their records. Taxpayers should gather all year-end income documents to help ensure they file a complete and accurate 2020 tax return and avoid refund delays. […]

Categories
Uncategorized

What taxpayers need to know about claiming the credit for other dependents

IRS Tax Tip 2021-18 What taxpayers need to know about claiming the credit for other dependents 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 for each dependent who meets the following: 1. Dependents who are age […]

Categories
Uncategorized

Select a tax return preparer with care

Source: IRS  IR-2021-46 Tax Time Guide: Select a tax return preparer with care WASHINGTON – The Internal Revenue Service today reminded taxpayers to choose a tax return preparer with care. Even though the vast majority of tax return preparers provide honest, quality service, some cause great harm through fraud, identity theft and other scams every year. […]

Categories
Uncategorized

All first and second Economic Impact Payments; eligible people can claim Recovery Rebate Credit

All first and second Economic Impact Payments; eligible people can claim Recovery Rebate Credit IR-2021-38, February 16, 2021 WASHINGTON – The IRS announced on February 16, 2021 that, as required by law, all legally permitted first and second round of Economic Impact Payments (EIP) have been issued and the IRS now turns its full attention […]

Categories
Uncategorized

Things taxpayers should know when choosing between standard and itemized deductions

Source: IRS Tax Tip 2021-22 Things taxpayers should know when choosing between standard and itemized deductions Deductions reduce the amount of taxable income when filing a federal income tax return. In other words, they can reduce the amount of tax someone owes.Most taxpayers have a choice of either taking the standard deduction or itemizing their […]