News
Resources, articles, and updates about taxes and accounting for individuals, businesses, and other organizations to help you reach your financial goals.
ARPA Adds Cash to the Child Tax Credit (2021 Only)
For the 2021 tax year only, the new American Rescue Plan Act (ARPA) makes big, taxpayer-friendly changes to the federal income tax child tax credit (CTC). Here’s what you need to know, starting with some necessary background information. CTC Basics For 2018-2020 and...
Wow! Married, Filing Separately, May Be the Tax Year 2020 Strategy
If you are married, most likely you’ve always filed a joint tax return with your spouse. Most of the time, a joint return shows less overall tax than two separate tax returns, because the married- filing-separately status has many tax disadvantages. But fast-forward...
ARPA Ends Dreaded Cliff for Health Insurance Premium Tax Credit
If you are self-employed or operate as a corporation, and you can’t get individual health insurance coverage through your spouse (or through Medicare), you can always obtain it through the premium tax credit (PTC) which comes from the Affordable Care Act. You simply...
Tax Bonanza: Expanded Individual Tax Credits in New Law
For tax year 2021, Congress is giving away billions of dollars in additional tax credits on your Form 1040 individual tax return. These temporarily expanded tax credits include the child tax credit, the dependent care credit, and the health insurance premium tax...
Employee Retention Credit: Step-by-Step Example
With the Consolidated Appropriations Act, 2021, millions of small-business owners like you now qualify for the employee retention credit (ERC) thanks to three big changes: You can now obtain the ERC and the Paycheck Protection Program loan, but not on the same...
Starting a New Business? Get Up to $100,000 in Tax-Free Money
You likely already know that the employee retention credit (ERC) is a good deal—if you qualify. Now, thanks to the recently enacted American Rescue Plan Act of 2021 (ARPA), you can qualify for up to $100,000 of ERC in the third and fourth quarters of 2021 if...
Double Benefits: Claiming Both the ERC and Tax-Free PPP
First, say thanks to the Consolidated Appropriations Act, 2021 (CAA), enacted December 27, 2020. It opened the door (retroactively and going forward) for Paycheck Protection Program (PPP) participants to also claim the employee retention credit (ERC). Reminder. Tax...
Can You Claim the ERC for the Owner of a C or S Corporation?
Members of the tax community struggle with the “solo corporate owner” qualification for the employee retention credit (ERC). In their recently published The Employee Retention Credit Guide, authors Alan S. Gassman, Brandon L. Ketron, Patrick D. Collins, and Ian...
PPP Extended—Act Fast or Miss Out
Good news. The PPP Extension Act of 2021 makes Paycheck Protection Program (PPP) monies available until the earlier of May 31, 2021, orwhen the money runs out. According to testimony before the Senate, the money could run out as early as mid-April. That’s just a few...