President Biden said January 19 that he was willing to break up his Build Back Better (BBB) plan into manageable "chunks" to see what could pass now, and return later in the year in hope of passing what remains. He also acknowledged that the enhanced Child Tax Credit, free community college, paid leave, and other BBB provisions would likely have to be jettisoned.
"It's clear to me we'll have to probably break it up," Biden said of the nearly $1.7 trillion bill. "I think we can break the package up, get as much as we can now, come back, and fight for the rest later."READ MORE
The Internal Revenue Service is issuing information letters to recipients of the third round of the Economic Impact Payments. People receiving these letters to make sure they hold onto them to assist them in preparing their 2021 federal tax returns in 2022.
IRS Letter 6475, Your Third Economic Impact Payment, will help Economic Impact Payment recipients determine if they are entitled to and should claim the Recovery Rebate Credit on their tax year 2021 tax returns that they file in 2022.READ MORE
The Internal Revenue Service is issuing information letters to Advance Child Tax Credit recipients. People receiving these letters to make sure they hold onto them to assist them in preparing their 2021 federal tax returns in 2022.
IRS Letter 6419, 2021 advance CTC, will include the total amount of advance Child Tax Credit payments taxpayers received in 2021 and the number of qualifying children used to calculate the advance payments. People should keep this and any other IRS letters about advance Child Tax Credit payments with their tax records.READ MORE
Many Americans wish to help out their communities and favorite charities through end of year financial support. Are you able to do it more efficiently?
The easiest was to give is through a check or electronic giving portal. Cash comes right out of your bank account. Here are three fairly simple strategies to consider.READ MORE
Taxpayers, including those who received stimulus payments or advance Child Tax Credit payments, should take steps now to make filing their tax returns easier in 2022. Planning will help taxpayers file an accurate return and avoid processing delays that can hold up refunds, the IRS says.READ MORE
Did you know you can make a $300 donation (or $600 for a married couple filing jointly) and get a tax deduction – even if you do not itemized your deductions?
The IRS has reminded taxpayers that a special tax provision will allow more Americans to deduct up to $600 in donations to qualifying charities on their 2021 federal income tax return. It is just for 2021.READ MORE
The Internal Revenue Service sent a large number of CP14 notices dated July 5, 2021 to individuals that had an amount due on their 2020 income tax return. These notices appear to be sent in error; however, there are steps you should take to prevent further action and dispute the amount due.
Based on our research and conversations with other CPAs, the IRS has deposited tax payments made on individual’s 2020 income returns; but has not updated individual accounts to credit payments made.READ MORE
The American Rescue Plan Act of March 2021 changed a number of provisions for the child tax credit – these tax changes are temporary and only apply to the 2021 tax year.
As we begin the month of April, please be assured your 2020 income tax return has been prepared and is awaiting CPA review. You should expect to hear from us soon.
With some of the tax law changes that happened in 2021 that affected 2020, we have been awaiting guidance from the IRS for updated forms and how to report certain items correctly the first time. The tax returns become more complex (e.g., reconciling stimulus payments, cryptocurrency, due diligence reporting for tax credits, etc.) each year and we are attempting to keep everyone in compliance.READ MORE
You can check the status of both your payments by using the IRS Get My Payment tool. If you have not received your full payment by the time you file your 2020 tax return, you may claim the Recovery Rebate Credit.
For more information, click HERE.