Beware: Teleworking Arrangements May Cause State Tax Withholding Issues
During the COVID-19 pandemic, many employers shut down their regular workplaces, either partially or wholly, as a safety precaution and instructed their employees to work from home. While some employees have returned to work, many are still working from home. Some employers have found that using remote workers is a sound strategy going forward. As a…
Following Up on Coronavirus-Related Distributions from IRAs
If you were adversely affected by the COVID-19 pandemic, you may have taken a tax-favored coronavirus-related distribution (CVD) from a traditional IRA last year. This privilege was allowed under the CARES Act, which was signed into law on March 27, 2020. What steps can you take now to achieve the optimal federal income tax results? CVD…
Your Household Help May Allow You to Claim the Nanny Tax Credit
By Ryan Footer, Senior Accountant Introduction The COVID-19 pandemic introduced new hardships for American workers including record job losses, career changes, temporary jobs and remote work. The family home suddenly became both workplace and classroom, prompting more families to seek household help. For 2020 and 2021, the federal government implemented “nanny tax” credits to encourage…
2021 Year-End Tax Planning Series
The Year-End Tax Planning Series provides a roadmap for taxpayers navigating the many tax planning opportunities available this year. The content includes guidance for the various provisions enacted to help US taxpayers recover from the economic hardship associated with the COVID-19 pandemic. Tax Credits for Families Tax Strategies for Small Business Tax Advanced Savings Strategies…
Tax Credits for Families
Energy Tax Credit for Homeowners For 2021, homeowners may be able to take a tax credit of 26% of the costs of qualified solar electric property, solar water heating property, small wind energy property, geothermal heat pump property, and fuel cell property. The credit remains at 26% of the qualifying costs for systems installed in…
Qualifying for Tax Breaks for a Dependent Parent
For many families, the tables may turn, and adult children provide financial support for their parents. For example, you might have moved your in-laws from a long-term care facility into your home during the pandemic for safety and convenience. Or your widowed father might still live in his own home, but his pension might not be…
4 Tax-Saving Credits for Families
Families may be able to cash in on various tax credits to offset their tax liability on a dollar-for-dollar basis. Plus, recent legislation has enhanced some of the credits for 2021. Here’s an overview of four key tax credits for families that are currently on the books. 1. Child Credit Through 2025, eligible parents could claim…
Eligible Parents Will Begin Receiving Advance Child Tax Credits July 15
The 2021 advance child tax credit (CTC) payments, which were established under a recent law, will begin being made on July 15, 2021, the IRS announced. The tax agency also stated that “roughly 39 million households — covering 88% of children in the United States — are slated to begin receiving monthly payments without any further…
Which States Are Opting Out of Federal Unemployment Benefits
In recent weeks, many employers have complained about how difficult it is to fill job openings. The country is returning to normalcy, with COVID-19 cases drastically falling, yet some businesses can’t get all their workers to come back. Maryland recently joined 24 other states in ending the $300 per week federal unemployment benefits in a…
Are You Ready for the Return of EEOC Census Reports
Data collection from employers isn’t new. The Equal Employment Opportunity Commission (EEOC) has been harvesting employment-related information for a long time. The last year employers had to file the EEO-1 report was for 2018, which was due in 2019. Now that the EEOC is returning to a more normal staffing level, companies that are required…