Supreme Court Overturns Eviction Ban
On Thursday evening, the U.S. Supreme Court overturned the Biden administration’s order extending the pandemic-related eviction moratorium issued by the Centers for Disease Control and Prevention (CDC). The summary judgment states that the CDC had overstepped its authority by imposing the moratorium, which would have expired on Oct. 3. The decision means that evictions, in states or […]
New COVID-19 relief law extends employee retention credit
The recent signing of the American Rescue Plan Act (ARPA) brings potentially good news for many business owners: the employee retention credit (ERC) has been extended again. The ERC was originally introduced under the CARES Act to provide tax relief to companies that retain employees during the COVID-19 pandemic. It was then extended and enhanced under the Consolidated Appropriations Act. The ARPA further extends the ERC from June 30, 2021, until December 31, 2021. It also extends the higher percentage of 70% of qualified wages, as well as the allowance for up to $10,000 in eligible wages for any calendar quarter. We can explain further and help you determine whether your business qualifies.
New law: Parents and other eligible Americans to receive direct payments
President Biden has signed the American Rescue Plan Act into law. Among the many relief provisions are direct payments that will be made to eligible individuals. The full amount for eligible individuals is $1,400 ($2,800 for eligible married couples filing joint tax returns) plus $1,400 for each dependent. Most eligible taxpayers will receive direct bank deposits or paper checks in the mail. The full payments are available to those with adjusted gross incomes (AGIs) of less than $75,000 ($150,000 for married couples filing jointly and $112,500 for heads of households). There is also an increased Child Tax Credit for eligible taxpayers, part of which will be paid out monthly later this year.
New Benefits Available to More Employers with the Revised Employee Retention Credit
We wanted to pass along to you some news in the form of an expansion of the Employee Retention Credit with the signing of the Consolidated Appropriations Act of 2021 on 12/27/20. Employers that carry on a trade or business that either were fully or partially suspended due to orders from the federal or state […]
Notice 2021-15: Relief for health FSAs and dependent care assistance programs under “cafeteria plans” (COVID-19)
The IRS today released an advance version of Notice 2021-15 to clarify application of provisions of the “Taxpayer Certainty and Disaster Tax Relief Act of 2020” (enacted as part of the “Consolidated Appropriations Act, 2021” (Pub. L. No. 116-260)) which provides temporary special rules for health flexible spending arrangements (health FSAs) and dependent care assistance […]
Estimated Tax Penalty and Interest Waiver for Individuals Who Received Unemployment Benefits in Tax Year 2020
Source: State of Michigan This notice establishes an automatic waiver of all penalty and interest related to estimated taxes owed by individual income taxpayers who received unemployment benefits during tax year 2020. Estimated Payment Obligation. Section 301(1) of the Michigan Income Tax Act requires every person whose annual tax is expected to exceed $500 or more […]
New “PPP2” Funding Opens Today for Special Targeted Applicants
Opening to Remaining Applicants Expected Very Soon Application and Guidance Have Been Released Applications for a new fresh round of Paycheck Protection Program funds have now officially opened today. Initially this is only for targeted community lenders who specialize in working with women-led and minority-owned small businesses. Although we have not heard a definite timeline […]
Need another PPP loan for your small business? Here are the new rules
One item of interest for small business owners in the Consolidated Appropriations Act (CAA) is the availability of a second loan from the Paycheck Protection Program (PPP). The recently enacted CAA permits some small businesses who received a PPP loan to take out a “PPP Second Draw Loan” of up to $2 million. To qualify, you must employ no more than 300 employees per physical location, have used or will use the full amount of your first PPP loan, and demonstrate at least a 25% reduction in gross receipts during any quarter of 2020 (as compared with the same quarter in 2019). Additional rules apply. Contact us with any questions you might have about PPP loans.
The COVID-19 relief law: What’s in it for you?
The COVID-19 relief law that was signed recently contains many provisions that may affect you. The law provides for direct payments of $600 per eligible individual ($1,200 for a married couple filing jointly), plus $600 per qualifying child. The government has already started making bank direct deposits or mailing checks. Another provision extends a charitable donation tax deduction for individuals who don’t itemize deductions. For 2020, they can take up to a $300 deduction per tax return and for 2021, married joint filers can claim up to $600. These are only a few provisions in the new law. We’ll make sure that you get all the tax breaks you’re entitled to when we prepare your tax return.
New law doubles business meal deductions and makes favorable PPP loan changes
The COVID-19 relief bill, signed into law on December 27, 2020, contains numerous favorable tax breaks for businesses. For example, the new law includes a provision that removes the 50% limit on deducting business meals provided by restaurants and makes those meals 100% deductible. This rule applies to expenses paid or incurred in calendar years 2021 and 2022. The law also authorizes more money towards the Paycheck Protection Program (PPP) and extends it to March 31, 2021. In addition, it provides for the deductibility of PPP expenses paid with the loan proceeds. These are just a couple of the business-related provisions in the new law. Contact us if you have questions about your situation.
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