Our Financial Blog
The US Loses Out on $1T/Year Due to Tax Cheats, IRS Estimates
As part of its oversight role, Congress is constantly assessing the economic health of the United States, so hearing from Internal Revenue Service Commissioner Chuck Rettig that the country may be losing up to $1 trillion a year in evaded taxes is an obvious cause for...
How Biden’s American Families Plan Might Affect You
President Biden presented his proposed American Families Plan (AFP) during his Joint Session of Congress address on April 29, 2021. What follows is an overview of what is included in the plan. But this is only his wish list; Congress will need to draft proposed...
IRS Provides Information about Advance Child Tax Credit Payments
The IRS has published a webpage to provide guidance to taxpayers on advance child tax credit (CTC) payments in 2021. Some background about the child tax credit - Taxpayers are allowed a CTC - temporarily expanded and made refundable for 2021 by the American Rescue...
Owe Taxes and Can’t Pay by the Due Date?
The vast majority of Americans get a tax refund from the IRS each spring, but what if you are one of those who end ends up owing? The IRS encourages you to pay the full amount of your tax liability on time by imposing significant penalties and interest on late...
Important Due Dates for Individuals & Businesses
May 10 - Report Tips to Employer - IndividualIf you are an employee who works for tips and received more than $20 in tips during April, you are required to report them to your employer on IRS Form 4070 no later than May 1110. Your employer is required to withhold FICA...
How To Pay Off Your SBA EIDL Loan
UPDATED 7/21/22: All COVID-EIDL Loans approved in calendar years 2020, 2021 & 2022 now have a total deferment period of 30 months from the date of the Note. Interest will continue to accrue on the loans during the deferment. After the deferment period ends,...
Writing Off Your Business Start-Up Expenses
Unfortunately, as a result of the COVID pandemic many small firms have gone out of business. Fortunately, with the help of vaccines, new businesses will be opening as the economy returns to near normal. New business owners, especially those operating small...
Tax Court Decision Holds Potential Impact for Travel Deductions
There are many professions that require taxpayers to travel extensively and spend significant amounts of time in paid lodging. These expenses are traditionally claimed as travel deductions. However, a case recently heard by the Tax Court – Soboyede, TC Summary Opinion...
Don’t be a Victim to IRS-Impersonating Scammers
Thieves and IRS scammers use taxpayers’ natural fear of the IRS and other government entities to ply their scams, including e-mail and phone scams, to steal your money. They also use phishing schemes to trick you into divulging your SSN, date of birth, account...
IRS to Automatically Adjust Prior Filed 2020 Returns with Unemployment Income
The IRS announced on March 31, that it will take steps to automatically refund money this spring and summer to people who filed their tax return reporting unemployment compensation before the recent law change made by the American Rescue Plan Act. The American Rescue...
Big Increase in Child Tax Credit For 2021
A big increase in child tax credit for 2021 is part of President Biden’s stimulus package to help tackle the coronavirus pandemic and stimulate the economy. This stimulus package, which was passed by Congress on March 10, 2021 and is known as the American Rescue Plan...
You Can Expense Business IT Purchases
Thanks to some very liberal tax laws written to encourage investment in personal tangible equipment, including information technology (IT) equipment, many businesses will be able to expense (write off as a tax deduction) all such assets purchased and placed in service...
Are Your Unemployment Benefits Taxable?
With the passage of the CARES Act stimulus package early in 2020, the federal government began supplementing the normal state weekly unemployment benefits by adding $600 per week through the end of July 2020. When this provision ran out, and with Congress at a...
Creditor Garnishment Maximum to be Based on State Minimum Wage in Virginia
Effective July 1, 2021, the maximum amount of disposable earnings subject to garnishment will be based on the state minimum wage, which will be $9.50 per hour in Virginia because of the scheduled increase that begins May 1, 2021. The maximum amount subject to...
Virginia Individual Income Tax Filing & Payment Deadline Extended
Virginia's Governor has directed the Department of Taxation to extend the individual income tax filing and payment deadline in Virginia to Monday, May 17, 2021. This extension aligns with the recent extension by the IRS to the same date.
Tax Day for Individuals extended to May 17
The Treasury Department and the Internal Revenue Service announced today that the federal income tax filing due date for individuals for the 2020 tax year will automatically be extended from April 15, 2021 to May 17, 2021. Individual taxpayers can also postpone...
Obscure and Overlooked Tax Deductions, Credits, and Benefits
As tax time approaches, here are some tax issues that taxpayers frequently overlook, ranging from obscure deductions to overlooked tax credits and benefits. Of course, not everything can be included since the tax law has grown significantly in complexity, and it would...
Unemployment Fraudsters May Create a Tax Nightmare for Unsuspecting Taxpayers
As if this past year with all of its pandemic perils has not been stressful enough, the Office of the Inspector General for the Department of Labor has just added to our anxieties by announcing that at least at least $36 billion and possibly as much as $63 billion has...
Understanding Tax-Filing Status
Filing status is determined on the last day of the year and most often is based on marital status. The two most prevalent are as follows: Single – Unmarried individuals without dependents.Married Taxpayers Filing Jointly (MFJ) – The couple combines their incomes,...
March 2021 Individual & Business Due Dates
March 10 - Report Tips to EmployerIf you are an employee who works for tips and received more than $20 in tips during February, you are required to report them to your employer on IRS Form 4070 no later than March 10.Your employer is required to withhold FICA taxes...