By month: April 2021

PPP Extended—Act Fast or Miss Out

This is likely it—your last chance to obtain first- and second-draw Paycheck Protection Program (PPP) monies. A new law, the PPP Extension Act of 2021, extends the expiration date to the later of May 31 or when the money runs out. Note the phrase “when the money runs out,” and be forewarned that this can happen within weeks. So, don’t procrastinate—not even for one day.

Can You Claim the ERC for the Owner of a C or S Corporation?

Can your corporation claim the employee retention credit on the W-2 wages it pays to a shareholder-employee who owns more than 50 percent of the corporation? There’s disagreement about this within the tax community. What should you do? Read this article.

Double Benefits: Claiming Both the ERC and Tax-Free PPP

When Congress passed the CARES Act, it gave small-business owners like you two choices: get tax-free Paycheck Protection Program (PPP) monies or take the employee retention credit (ERC). Fast-forward to the new law enacted on December, 27, 2020, and you will find that you can now benefit from both programs, retroactive to March 13, 2020, as you see in this article.

Starting a New Business? Get Up to $100,000 in Tax-Free Money

Congress created the employee retention credit (ERC) to help your business that continued to pay employees even though it was impacted by COVID-19. Fast-forward to the new American Rescue Plan Act of 2021, and now you can potentially take an ERC of up to $100,000 during the last six months of 2021 if you start a new business during the pandemic. In this article, we’ll explain how this valuable provision works and the net amount it can put in your pocket.

Employee Retention Credit: Step-by-Step Example

Congress created the COVID-19 employee retention credit to help employers continue to pay employees while affected by the COVID-19 pandemic. The Consolidated Appropriations Act, 2021, and the American Rescue Plan Act expanded access to this tax credit in both tax years 2020 and 2021. In this article, you see how a small-business owner calculates and claims this most beneficial tax credit.

ARPA Ends Dreaded Cliff for Health Insurance Premium Tax Credit

With the passage of the American Rescue Plan Act of 2021, Congress has temporarily abolished the health insurance premium tax credit “subsidy cliff.” For 2021 and 2022, self-employed and small-business owners and other individuals who must purchase individual health insurance may qualify for premium tax credit health insurance subsidies even if their income far exceeds the old limit of 400 percent of the federal poverty level.

Wow! Married, Filing Separately, May Be the Tax Year 2020 Strategy

In most circumstances, you save federal tax when you’re married by filing a joint return versus two separate returns. But for tax year 2020, due to how Congress wrote some of the temporary COVID-19 tax benefit provisions, you may end up pocketing more money by filing separate returns. We’ll show you why this is the case and how to determine which filing status you should use.

ARPA Adds Cash to the Child Tax Credit (2021 Only)

In the newly enacted American Rescue Plan Act of 2021, lawmakers enhanced the child tax credit with additional monies, some of which are refundable beginning in July 2021. The newly enhanced tax credits are available for the 2021 tax year only.

ARPA Adds Dollars to the Child and Dependent Care Tax Credit

The new American Rescue Plan Act makes major—but temporary, for tax year 2021 only—changes to the federal income tax child and dependent care credit. This is the tax credit you can earn if you spend money taking care of your children and other qualifying dependents.

Tax Bonanza: Expanded Individual Tax Credits in New Law

The American Rescue Plan Act of 2021 provided billions of dollars in new expanded tax credits for individuals like you for tax years 2021 and/or 2022. The three main tax credits Congress increased are the child tax credit, the dependent care credit, and the premium tax credit for health insurance. Learn how you can get thousands more in your pocket for tax year 2021 due to these changes.

ARPA Liberalizes the Earned Income Tax Credit Rules

The newly enacted American Rescue Plan Act of 2021 liberalizes the earned income tax credit, making it more valuable for some of those who claim it. In this article, we walk you through the credit as it currently exists and explain how it’s more available and enhanced for 2021.


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