2020 COVID relief bill provisions affecting individual taxpayers

12/30/2020 2020 COVID relief bill provisions affecting individual taxpayers Here is an overview of key provisions in the recent COVID relief legislation that affect individuals. The legislation is the COVID-related Tax Relief Act of 2020 (the "Act" or COVIDTRA) and…

COVID-19 Relief bill – Consolidated Appropriations Act, 2021

COVID-19 Relief bill - Consolidated Appropriations Act, 2021 On December 21, 2020, U.S. Senate and House of Representatives passed a $900 billion COVID-19 relief bill, the Consolidated Appropriations Act , 2021. President Donald Trump signed the bill on December 27,…

The 2021 “Social Security wage base” is increasing

The 2021 “Social Security wage base” is increasing If your small business is planning for payroll next year, be aware that the “Social Security wage base” is increasing. The Social Security Administration recently announced that the maximum earnings subject to…

Understanding the passive activity loss rules

Understanding the passive activity loss rules Are you wondering if the passive activity loss rules affect business ventures you’re engaged in — or might engage in? If the ventures are passive activities, the passive activity loss rules prevent you from…

The easiest way to survive an IRS audit is to get ready in advance

The easiest way to survive an IRS audit is to get ready in advance IRS audit rates are historically low, according to the latest data, but that’s little consolation if your return is among those selected to be examined. But…

Will You Have to Pay Tax on Your Social Security Benefits?

Will You Have to Pay Tax on Your Social Security Benefits? If you’re getting close to retirement, you may wonder: Are my Social Security benefits going to be taxed? And if so, how much will you have to pay? It…

What happens if an individual can’t pay taxes

What happens if an individual can’t pay taxes While you probably don’t have any problems paying your tax bills, you may wonder: What happens in the event you (or someone you know) can’t pay taxes on time? Here’s a look…

More parents may owe “nanny tax” this year, due to COVID-19

More parents may owe “nanny tax” this year, due to COVID-19 In the COVID-19 era, many parents are hiring nannies and babysitters because their daycare centers and summer camps have closed. This may result in federal “nanny tax” obligations. Keep…

The tax implications of employer-provided life insurance

The tax implications of employer-provided life insurance Does your employer provide you with group term life insurance? If so, and if the coverage is higher than $50,000, this employee benefit may create undesirable income tax consequences for you. “Phantom income”…