2021 – 06/22 In a letter currently being sent to taxpayers, the IRS explains that no action is required to begin receiving advance child tax credit (CTC) payments for 2021 (assuming the taxpayer is eligible). The American Rescue Plan Act directs the IRS to make advance monthly payments of half the estimated annual CTC during 2021. The IRS will make the advance payments from July through the end of 2021. If, however, taxpayers wish to opt out of receiving advance CTC payments, instructions on how to unenroll from these payments will be available by the end of June. Contact us for additional information on the CTC.
Similar Posts
Homeowners Assistance Fund
2021 – 11/09 Tax guidance is available for those who received federal mortgage payment assistance from the Homeowners Assistance Fund (HAF). The HAF, part of the 2021 American Rescue Plan Act, is intended to mitigate housing-related financial hardships caused by the pandemic. The program provides funds to entities to assist homeowners in danger of mortgage…
Deducting Business Meals
2021 – 01/11 The Consolidated Appropriations Act includes a provision that removes the 50% limit on deducting eligible business meals in 2021 and 2022. In general, the ordinary and necessary food and beverage expenses of operating a business are deductible. The new law allows a 100% deduction for these expenses for food or beverages provided…
Employee Retention Credit Terminated
2021 – 11/16 On Nov. 15, President Biden signed the Infrastructure Investment and Jobs Act. The $1.2 trillion law provides money for improvements in bridges, mass transit, rail, airports, ports and waterways. The bipartisan legislation also contains a provision that terminated the Employee Retention Credit (ERC) on Oct. 1, 2021. It was scheduled to end…
Help ensure the IRS doesn’t reclassify independent contractors as employees
2021 – 05/10 Many businesses use independent contractors to help keep their costs down. If you’re among them, make sure that these workers are properly classified for federal tax purposes. If the IRS reclassifies them as employees, it can be a costly error. It can be complex to determine whether a worker is an independent…
Employee Retention Credit: Does Your Business Qualify
2021 – 03/30 Did your business retain employees during the COVID-19 pandemic? If yes, you could enjoy tax relief with the Employee Retention Credit (ERC). Originally introduced with the CARES Act, the ERC is a refundable tax credit against certain employment taxes equal to 50% of qualified wages, up to $10,000 per employee, that an…