Huge Changes to the Child Tax Credit: Should You Decline the Advanced Payments?
In response to the U.S.’s continued struggles recovering from the Coronavirus Pandemic, President Biden passed the American Rescue Plan Act (ARPA) in January, which contained a major overhaul to the Child Tax Credit (Provision 9611), a credit which currently benefits nearly 39 million households across the country. Now, not only does the maximum credit per child increase, but taxpayers will no longer have to wait to file their taxes in order to reap the benefits of the credit.
Read POSTTaxation of Virtual Currency
As virtual currency gains increasing acceptance by the public, it is important to consider the tax implications for those that invest and engage in various transactions with the digital currency. What is virtual currency? Virtual currency is a digital representation of value. Although virtual currency is exchangeable in the same manner as real currency, for example the dollar, it is not recognized as legal tender in the United States. Some virtual currencies including Bitcoin and Ethereum are convertible virtual currency, meaning they may be exchanged for an equivalent value of dollars, euros, or other types of real currency.
Read POSTDon’t Miss Out on Employee Retention Credits
Over the Holidays, the Consolidated Appropriations Act, 2021 was signed into law, opening the doors for many businesses to claim the Employee Retention Credit (ERC) who were previously deemed ineligible, and expanded the credit into the 2nd quarter of 2021. Businesses that qualify can claim an ERC for wages paid during an eligible period/quarter of up to $5,000 per employee in 2020, and up to $14,000 per employee in 2021. The fully refundable credit is available against an employer’s share of Social Security tax on employee wages.
Read POST2020 Tax Updates and Year in Review
With 2020 rapidly coming to a close, many of us are eagerly looking forward to 2021 in hopes that less tumultuous times are ahead. While we are all anxious for a better tomorrow, it’s important that we take the time today to look back upon the year and use this opportunity to take advantage of any changes to the tax code that occurred during 2020, and possibly consider a change in our own personal tax strategies.
Read POSTAccountable Plans and Fringe Benefits
As an increasing number of individuals begin to work from home, either by choice or otherwise, many employers have begun to pay for expenses incurred by their employees in an effort to support their remote working environment, while others have begun offering certain fringe benefits to boost morale or show appreciation. We have fielded many questions from our clients as to the tax consequences to both the employers and employees in these types of situations, and ultimately the deciding factors are:
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