Advance Child Tax Credit and EIP Must Be Reconciled on Your 2021 Return

Advance Child Tax Credit and EIP Must Be Reconciled on Your 2021 Return Article Highlights American Rescue Plan Advance Payments Payment Reconciliation IRS Letter 6419 Refund May Not Be as Expected Unusual CTC Circumstances Economic Impact Payment Letter 6475 Early in 2021 Congress passed the American Rescue Plan which included a provision that increased the…

Tax Tips for Holiday Charity Donations

Tax Tips for Holiday Charity Donations Article Highlights: Long-Form Itemization Required Below-the-Line Cash Contributions for 2021 Qualified Charities Only Cash Donations Non-cash Donations Leave Donations Other Qualifying Donations AGI Limitations Year-End Donations During the holidays, many charities solicit gifts of money or property. This article includes tips for documenting your charitable gifts so that you…

The Art of Running a Successful Family Business: Breaking Things Down

The Art of Running a Successful Family Business: Breaking Things Down At its core, a family business is exactly what it sounds like: a company or other enterprise owned, operated, and actively managed by at least two people from the same family. This can be a parent and their kids, two siblings, or some other…

October Extended Due Date Just Around the Corner

October Extended Due Date Just Around the Corner Article Highlights: October 15 is the extended due date for filing federal individual tax returns for 2020. Late-filing penalty Interest on tax due Other October 15 deadlines The normal April 15, 2021 filing deadline for 2020 individual tax returns was extended by the IRS to May 17,…

Tax Breaks for Grandparents

Tax Breaks for Grandparents Article Highlights: Head of household filing status Earned income tax credit Child tax credit Child care credit for certain working grandparents Grandchild education credits Medical and dental expenses More and more individuals who thought their child-rearing days were over are now raising their grandchildren. It is estimated that 6.5 million children…

Our Olympic Champs Get a Tax Break

Our Olympic Champs Get a Tax Break Article Highlights: Olympians’ Prize Money Who Gets Taxed? Gold Medals Aren’t Solid Gold Value of Medals if Sold You may not realize this, but in addition to winning an Olympic medal, winners are compensated by the U.S. Olympic Committee with prize money: $37,500 for winning a gold medal…

Getting Married and Related Tax Issues  (Part 2)

Getting Married and Related Tax Issues  (Part 2) Previously we discussed some things to consider when getting married.  In this part we will discuss the specifics of actual Tax Filing Status and related issues to the choices made and how we can help. Filing Married filing Separate Some of the more relevant negative issues related…

Getting Married and Related Tax Issues (Part 1)

Getting Married and Related Tax Issues (Part 1) Article Highlights: SSA Name Change IRS Address Change Postal Service Address Change Tax Withholding Tax Filing Status Marrying A Non-resident Alien Joint and Several Liability Beware of Tax Scams Most weddings planned for 2020 were delayed because of COVID, causing a big upswing in the number of…

Day Care Providers Enjoy Special Tax Benefits

Day Care Providers Enjoy Special Tax Benefits Article Highlights: Business Use of Home Prorated Use Owned Home Rented Home Exclusive Use Meal Allowance Other Deductions A taxpayer who is in the business of providing family day care in their home may deduct the ordinary and necessary expenses of their business. The two primary deductions include…

Did You Get a Letter from the IRS? Don’t Panic.

Did You Get a Letter from the IRS? Don’t Panic. Article Highlights: IRS Notices CP Series Notice Automated Notices Frequent Errors ID Theft Penalties and Interest What You Should Do What We Will Do Now that most tax refunds are deposited directly into taxpayers’ bank accounts, the dream of opening your mailbox and finding an…