May 10Employees who work for tips – If you received $20 or more in tips during April, report them to your employer. You can use Form 4070.Employers – Social Security, Medicare, and withheld income tax. File Form 941 for the first quarter of 2021. This due date applies only if you deposited the tax for the quarter […]
Beginning January 1, 2021, and extending through December 31, 2022, businesses can claim 100% of their food or beverage expenses paid to restaurants as long as the business owner (or an employee of the business) is present when food or beverages are provided and the expense is not lavish or extravagant under the circumstances. In […]
Some taxpayers who claim the 2020 Recovery Rebate Credit (RRC) on their 2020 tax returns are discovering that they may be getting a different amount than they expected. Let’s take a closer look at why this is happening. The first and second Economic Impact Payments (EIP) were advance payments of the 2020 credit. Most eligible […]
The IRS is automatically refunding money to eligible people who filed their tax return reporting unemployment compensation before the recent changes made by the American Rescue Plan. Background Typically, when an individual receives unemployment compensation it is taxable. However, under a recent law change (American Rescue Plan), taxpayers who earned less than $150,000 in modified […]
While not all mistakes on tax returns cause delays in refunds, some do. As the May 17, deadline approaches, it pays to steer clear of the 10 tax return errors listed below. 1. Not using electronic filing. While this isn’t necessarily a mistake per se, filing electronically is the best way to cut the chances for […]
Generally, taxpayers should file their tax return by the deadline even if they cannot pay the full amount due, but if you can’t there are several options. Let’s take a look at a few scenarios: 1. An individual taxpayer owes taxes, but can’t pay in full by the deadline. If this is the case, file a […]
Are you approaching retirement age and wondering where you can retire to make your retirement nest egg last longer? Retiring abroad may be the answer. But first, it’s important to look at the tax implications because not all retirement country destinations are created equal. Taxes on Worldwide Income Leaving the United States does not exempt […]
Many businesses hire part-time or full-time workers, especially in the summer. These types of employees are referred to as seasonal workers, which the IRS defines as an employee who performs labor or services on a seasonal basis (i.e., six months or less). Examples of this kind of work include retail workers employed exclusively during holiday […]
Earlier is better when it comes to working on your taxes but many people find preparing their tax return to be stressful and frustrating and wait until the last minute. Complicating matters this year is tax reform and the newly redesigned Form 1040. If you’ve been procrastinating on filing your tax return this year, here […]
April 12 Employees who work for tips – If you received $20 or more in tips during March, report them to your employer. You can use Form 4070. April 15 Employers – Nonpayroll withholding. If the monthly deposit rule applies, deposit the tax for payments in March. Employers – Social Security, Medicare, and withheld income tax. If […]