Child Tax Credit Letters Being Sent

Jul 29, 2021 | IRS, Taxes

The IRS has started sending letters to over 36 million families who, based on tax returns filed, may be eligible to receive monthly child tax credit payments starting July. Eligibility of these families are being evaluated based on information provided by taxpayers in...

American Rescue Plan Tax Credit FAQs

Jul 29, 2021 | IRS, News

The IRS issued two new, separate sets of frequently-asked-questions (FAQs) to assist families and small and mid-sized employers) in claiming credits under the American Rescue Plan (ARP). These FAQs provide information on eligibility, computing the credit amounts and...

Refunds Coming for Excluded 2020 Unemployment Pay

Jun 23, 2021 | Taxes, Unemployment

The IRS announced that it had started issuing refunds to eligible taxpayers who paid taxes on 2020 unemployment compensation that was excluded from taxable income by the recently enacted American Rescue Plan (ARP) ( P.L. 117-2). Unemployment compensation is taxable...

Safe Harbor for Certain PPP Loan Recipients Who Did Not Deduct Expenses

Jun 23, 2021 | PPP Loan, Taxes

A safe harbor is available for certain Paycheck Protection Program (PPP) loan recipients who relied on prior IRS guidance and did not deduct eligible business expenses. These taxpayers may elect to deduct the expenses for their first tax year following their 2020 tax...

Dependent Care Carryover, Extended Claims Period Treatment Clarified

Jun 23, 2021 | Taxes

Dependent care assistance benefits carryovers and extended claims period amounts that would have been excluded from income if used during the preceding tax year will remain excludable in tax years ending in 2021 and 2022. In addition, these benefits will not be taken...

Simplified Return Procedures for Advance Child Credit Payments and EIPs

Jun 23, 2021 | Taxes

Individuals may use two special procedures to file returns for 2020 that allow them to receive advance payments of the 2021 child credit and the 2021 Recovery Rebate Credit. Under the procedures: individuals who are not required to file returns for 2020 can use a...