IRS releases guidance on changes to the Employee Retention Credit
https://www.irs.gov/newsroom/irs-provides-guidance-for-employers-claiming-the-employee-retention-credit-for-first-two-quarters-of-2021
Archive of posts filed under the Accounting and Taxes category.
Posts relating to Accounting and Tax issues
Unemployment Compensation in California – Community Property Split
From Spidell If a married couple’s combined AGI (calculated without any UI compensation) is below $150,000, then MFJ taxpayers may exclude up to $20,400 of unemployment income even if one of the spouses had less than $10,200 in UI and the other spouse had more than $10,200. That is because California is a community property …
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Personal Protective Equipment Deductible as Medical Expense
The IRS issued Announcement 2021-7 today clarifying that the purchase of personal protective equipment, such as masks, hand sanitizer and sanitizing wipes, for the primary purpose of preventing the spread of coronavirus are deductible medical expenses. The amounts paid for personal protective equipment are also eligible to be paid or reimbursed under health flexible spending …
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Tax Filing Deadline Extended – Not 1st Est Tax payment
Here is a notice From Spidell Tax: California conforms to IRS May 17 extension, and AB 80 update (03-18-21) The FTB has confirmed that California will follow the IRS filing and payment extension date of May 17, 2021, for individual taxpayers only. Like the IRS extension, the California extension will not apply to the estimated tax …
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Senate passes COVID relief bill, onto House
The Senate has passed the COVID relief legislation which includes a provision that the first $10,200 of unemployment compensation in 2020 will be nontaxable. Now onto the House where is expected to be passed. I predict this will require the IRS to extend the April 15 filing deadline in order to make changes to its …
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Stimulus Payment Information
Information from Drake Software on Stimulus Payments: Recovery Rebate Credit The IRS announced last week that, as required by law, all legally permitted first and second round of Economic Impact Payments have been issued. Get My Payment was updated on January 29 to reflect the final payments and will not be updated again. If individuals …
California Agreement Covid Relief
The governor and legislative leaders have agreed on a package which includes the following:1. $600 in one-time relief to households receiving the California EITC for 2020 2. a four-fold increase – from $500 million to more than $2 billion – for grants up to $25,000 for small businesses impacted by the pandemic, and also allocates …
IRS updates FAQs on paid sick leave credit and family leave credit
https://www.irs.gov/newsroom/irs-updates-faqs-on-paid-sick-leave-credit-and-family-leave-credit
IRS makes it easier to set up payment agreements; offers other relief to taxpayers struggling with tax debts
The Internal Revenue Service today announced a number of changes designed to help struggling taxpayers impacted by COVID-19 more easily settle their tax debts with the IRS. 11/2/2020 #taxes #irs https://www.irs.gov/newsroom/irs-makes-it-easier-to-set-up-payment-agreements-offers-other-relief-to-taxpayers-struggling-with-tax-debts
PPP Paycheck Protection Program
Great article on the PPP program by Mattisyahu Teichman http://morristeichman.com/ppp-paycheck-protection-program-loans-forgiveness/ #PPPProgram #PPPProgramForgiveness