2020 – 08/25 The deadline to return distributions to certain retirement accounts is coming up. IRA owners, beneficiaries or workplace retirement plan participants who received a required minimum distribution (RMD) this year have until Aug. 31 to roll over or repay the distributions to avoid paying taxes. The CARES Act waived RMDs during 2020 for IRAs and retirement plans, including for beneficiaries with inherited accounts. This waiver includes RMDs for individuals who turned age 70½ in 2019 and took their first RMD in 2020. Individuals who took RMDs in 2020, including those who turned 70½ in 2019, have the option of returning the distribution to their accounts or other qualified plans.
Similar Posts
Unemployment Benefits & Tax Returns
2021 – 07/13 You may already know that for 2020 tax returns, the American Rescue Plan Act excluded from income up to $10,200 in unemployment benefits (subject to income limits). For tax returns filed before the law passed, the IRS stated there’s no need to amend returns as the agency would automatically incorporate the changes…
Who in a small business can be hit with the “Trust Fund Recovery Penalty?”
2021 – 07/12 There’s a harsh tax penalty that you could be at risk for paying personally if you own or manage a business with employees. It’s called the “Trust Fund Recovery Penalty” and it applies to the Social Security and income taxes required to be withheld by a business from its employees’ wages. Because…
Businesses can show appreciation — and gain tax breaks — with holiday gifts and parties
2021 – 11/15 With Thanksgiving just around the corner, the holiday season will soon be here. At this time of year, your business may want to show its gratitude to employees and customers by giving them gifts or hosting holiday parties again after a year of forgoing them due to the pandemic. It’s a good…
Rightsizing your sales force
2020 – 12/16 With a difficult year almost over, and another one on the horizon, now may be a good time to assess the size of your sales force. Maybe the economic changes triggered by the COVID-19 pandemic led you to downsize earlier in the year. Or perhaps you’ve added to your sales team to…
Electric Vehicles Eligible for Federal Tax Credit
2022 -05/26 The IRS has added more electric vehicles to its list of those eligible for a federal tax credit. The tax code provides a credit (of up to $7,500) to purchasers of qualified plug-in electric-drive passenger vehicles and light trucks. The credit phases out over four calendar quarters, beginning when a manufacturer has sold…
Computer software costs: How does your business deduct them?
2022 – 11/14 These days, most businesses buy or lease computer software to use in their operations. Or perhaps your business develops computer software to use in your products or services or sells or leases software to others. In any of these situations, you should be aware of the complex rules that determine the tax…