Similar to previous years, the 2020 tax filing has several updates to allowable tax credits and deductions. Here’s an update an a few new items: 1. Economic Impact Payment / Recovery Rebate Tax Credits In April 2020, the IRS sent…
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Retirement Account Contribution Limits for 2021
When it comes to retirement account contribution limits for 2021, taxpayers face a good news/bad news situation. Bad News First: This IRS will not increase retirement account contribution limits this year The IRS set the following retirement account contribution limits…
Posted in General Tax Tips & News, QuickBooks tips
New Covid Relief Bill Offers Help to Small Businesses
New Coved Relief Bill Expands PPP The new Covid Relief bill includes an additional $284 million for the Paycheck Protection Program (PPP) for small businesses. Recipients of these loans have up to 24 weeks to use the funds, with at…
Posted in General Tax Tips & News
10 Great Tips to Reduce Your Taxes by Year-end
10 Ways You Can Reduce Taxes Before the End of the Year For many, 2020 has been a hard year. The pandemic has probably upended your life and maybe even your finances. We’ve summarized below some end-of-year tax strategies you…
Posted in General Tax Tips & News, QuickBooks tips
AGI Basics: What Is Adjusted Gross Income?
Adjusted Gross Income Defined Adjusted gross income (AGI) is a taxpayer’s total (or gross) income minus certain “above-the-line” deductions. The IRS uses your AGI as a starting point to determine how much tax you owe. To calculate your AGI, you…
Posted in General Tax Tips & News
Firms with a Forgiven PPP Loan May Lose Tax Deductions
PPP Loan Forgiveness Creates Tax Issues In normal business times, remember those days, if a company’s lender forgave a debt of at least $600, the company had to treat that as income. Also, in typical times, the IRS required lenders…
Deducting a Home Office in 2020
Work-life has changed with the pandemic of 2020. Many of us have not set foot in an office in months. While this new work style has upended many aspects of life (ask any parent with school-age kids), it may provide…
Posted in General Tax Tips & News, Personal Budget
Capital Gains on Home Sale for Widows and Widowers
After your spouse passes, you may want to sell your home. You may decide it’s too big, too much to keep up, or holds too many memories, or you may want to move closer to kids and grandkids. An Overview…
Posted in General Tax Tips & News
QBI Deduction for Small Business: What it is and How to Claim It
Overview of the Qualified Business Income (QBI) Deduction in 2020 In December 2017, Congress created a special tax treatment for pass-through companies (subchapter S corporations, LLCs, partnerships, and sole proprietors). We wrote an initial post on how QBI reduces taxes…
Social Security Strategies for Married Couples in 2020
Married Couples Have Flexibility In Claiming Social Security Benefits In terms of claiming benefits, Social Security provides married couples with more flexibility than it offers single folks. The best strategy for each couple depends on their ages, health, and earning…