The American Rescue Plan Act of 2021 (ARPA) makes major, but temporary, changes to the Child and Dependent Care Credit (CDCC). CDCC Basics If you have one or more qualifying individuals (usually your children) under your wing, you’re eligible…
How often do you get annoying messages popping up on your phone saying… “Your iPhone has not been backed up for 32 weeks.” You click OK, ignore it, and move on. Admit it—you saw the message for multiple weeks, yet…
Tax law is constantly changing. Whether it is changing amounts of deductions to index those items for inflation (i.e. – the standard deduction) or sweeping tax law changes that radically affect numerous items, your tax return may vary from year…
Business loss limitation rules are back in play for the tax year 2021. This means that if you have total business losses in excess of $262,000 (unmarried) or $524,000 (married) your deductions will be limited to that threshold even if…
Since 1986, lawmakers have limited business meal deductions—most recently to 50 percent. This was meant to prevent the abusive “three martini lunch.” But on December 27, 2020, in an effort to help the restaurant industry due to the COVID-19 pandemic,…
Roughly nine out of every ten taxpayers take the standard deduction instead of itemizing. In an effort to encourage people to give to charitable organizations, the Taxpayer Certainty and Disaster Tax Relief Act of 2020 allows a charitable deduction up…
Does your business qualify? What is it? The Employee Retention Credit (ERC) is a refundable tax credit against certain payroll taxes for wages paid after March 12, 2020 through September 30, 2021. If wages were paid during this time…
The American Rescue Plan Act expanded the eligibility and amounts of the child tax credit for 2021 tax returns: The definition of a qualifying child is broadened for 2021 to include 17-year-olds (i.e., children who haven’t turned 18 by the…
As we prepare to file our 2021 income tax returns, one question that may come up from your tax professional that you will need to be prepared for is: How much stimulus payment did you receive in the spring of…
Are you self-employed and were unable to work because either you or your family was affected by Covid-19 or its vaccine? You don’t want to miss out on this credit. The American Rescue Plan Act of 2021 extended credits to…
