The American Rescue Plan of 2021 supplied big tax breaks for many families. Among them was the increased child tax credit of $3,000 per child over the age of six and $3,600 per child under the age of six. Also there was a higher age limit of 17 and many…
Restaurant meal expenses incurred by a business in connection with clients and employees are 100% tax deductible for 2022. Enacted in December 2020 as part of the Consolidated Appropriations Act, this 100% deduction applies to years 2021 and 2022 only. The purpose of this law was to help the restaurant…
Donating to qualified charities such as churches and other 501(c)(3) non-profit organizations is a great way to support your community and organizations that help others. The added benefit of charitable giving is when it leads to a tax deduction, too! For 2022 and future years, the 60% of adjusted gross…
Do This When Paying Your Taxes Online to Avoid IRS Notices Last tax season we saw an influx of “balance due” IRS CP14 notices. In many of these cases, the taxes had already been paid online at IRS.gov. Receiving inaccurate notices from the IRS is frustrating for…
The Inflation Reduction Act (the Act) of 2022 extends and expands tax credits for making your home and vehicles more energy efficient. Here are a few noteworthy provisions in the Act. Energy Efficient Home Improvement Credit (formerly known as the Nonbusiness Energy Property Credit) The old credit, which…
This year Tax Day returns to its regularly scheduled deadline with individual returns being due April 18th. The extra three days are a result of IRS offices being closed on April 15th in observance of Emancipation Day. If you are not able to file your tax return by the deadline,…
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 for the CDCC. The credit covers eligible expenses that you…
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 to year. Some changes are permanent, and some are temporary.
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 you are active, at risk, and have sufficient tax basis…
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, lawmakers enacted a new, temporary 100 percent business meal deduction…
