Tax Warrior Chronicles

Tax Breaks for Parents in 2021!

Posted on Mon, May 10, 2021

By: Irina Moyseyenko, CPA, MT

 

The American Rescue Plan Act (“Act”), passed in March 2021, provides significant benefits for taxpayers with children. Today we will discuss the increased tax benefits, which are applicable only to tax year 2021. These benefits will revert to their previous amounts and limits unless extended by future legislation.

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IRS Springs a Surprise Interpretation of the 10-Year Rule Under the SECURE Act

Posted on Thu, Apr 29, 2021

By: Elizabeth Witko, Macc, MSF and Robert N. Polans, MT, PFS

 

Important Update:

Shortly after this blog was published on April 29, 2021, we received “unofficial word” from several sources including the AICPA and NAIFA that the IRS intends to correct their confusing guidance in Publication 590-B on Stretch IRA’s and the SECURE Act.  We have been informed that the recent IRS Publication update did not reflect the views of IRS officials drafting new regulations or some Congressional Committee staff members who assisted in the writing of the SECURE Act.  As more information becomes available regarding this development, we will provide an update.

 

Are you someone that inherited an IRA post

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American Rescue Plan Act's Free COBRA Mandate for Businesses - What You Need to Know

Posted on Thu, Apr 01, 2021

Today, a guest blogger looks at an important part of the American Rescue Plan Act of 2021, signed into law last month by President Biden. William Duff Esq., a partner at the law firm Royer Cooper Cohen Braunfeld (RCCB), discusses the mandate for businesses to provide free COBRA coverage for certain beneficiaries.

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2021 Individual Tax Deadline Extension – Déjà Vu All Over Again

Posted on Tue, Mar 23, 2021

By:  Drucker & Scaccetti

 

On March 17, 2021, the Treasury Department and the IRS announced the 2020 individual federal income tax filing due date will be automatically extended from April 15, 2021, to May 17, 2021. Since then, over 25 states and localities have announced similar extensions. The Tax Warriors have been patiently waiting for the additional guidance promised by the IRS, however, here we are 6 days later, with no such guidance. Today we will discuss what we know about the extensions, how they compare to last year, what is not extended (hint – Q1 2021 estimates are still due April 15) and several questions that remain.

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Another Round of Recovery Rebates Credits - American Rescue Plan Act of 2021

Posted on Fri, Mar 12, 2021

By: Drucker & Scaccetti

 

Yesterday, President Biden signed into law his first legislative act related to the COVID-19 crisis. Among its near 600-page content, the American Rescue Plan Act of 2021 (ARPA) provides a 2021 $1,400 Recovery Rebate Credit (RRC) per eligible individual and dependent. Dependents include qualifying children and qualifying relatives. Contrarily, the rebates under the CARES Act only included qualifying children. Today we will discuss the details of the 2021 RRC, including the advanced payments, which are expected to begin disbursement soon.

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Pennsylvania Decennial Filings Due in 2021

Posted on Thu, Mar 04, 2021

By: Ashley Menders and Mark Sobel

 

It’s that year again! As most of us are ecstatic to put 2020 behind us, remember that 2021 is the year of the Pennsylvania Decennial Filing for certain entities. This is a report of an entity’s continued existence or a report of continued use of certain marks, and today we will summarize everything you need to know about it.

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COVID-19-Related Expansion of Tax Break for Teachers

Posted on Tue, Mar 02, 2021

By:  Drucker & Scaccetti

 

Among the many frontline workers braving the pandemic are teachers and educators. With many hybrid school schedules in place, many find themselves in an in-person learning setting at least part of the time. Eligible educators can now broaden the list of deductible unreimbursed educator expenses to include protective items used to prevent the spread of COVID-19 in the classroom. Here is the guidance needed for those who are eligible.

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Self-employed Individuals Can Claim COVID-19 Sick and Family Leave Tax Credits

Posted on Tue, Feb 23, 2021

By: Olivia M. Seneca, MBA

 

The Internal Revenue Service recently announced the release of Form 7202 for eligible self-employed individuals to claim sick and family leave tax credits under the Families First Coronavirus Response Act (FFCRA). Today we will discuss how qualified self-employed taxpayers can claim tax credits under FFCRA.

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PPP Update #22 – White House Announces Adjustments to PPP Program

Posted on Tue, Feb 23, 2021

As guidance in this area is being released regularly, we recommend you read all of our blogs on this subject.  All the blogs in the Paycheck Protection Program series are here: Updates #1, #2#3#4#5#6#7,#8,#9,#10,#11,#12,#13, #14, #15#16#17, #18,

#19, #20, #21, #22

 

As the Paycheck Protection Program (PPP) saga continues, today we have a brief update on recent developments. Yesterday, the White House provided a fact sheet outlining proposed changes to the Paycheck Protection Program. While there are no specifics cited within the fact sheet, it does “explain” some of the processing delays associated with this round of PPP. The fact sheet also provides some insight into

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6 Keys to Unlocking the Power of 529 Plans

Posted on Wed, Feb 17, 2021

By: Ashley Hampton, MPA, Keisha Price, CPA, MST, and Febby Sugianto, MBA

 

A 529 plan is a tax-advantaged educational savings plan that, if approached thoughtfully, can help reduce the overall burden of a family’s educational expenses. As with most savings vehicles, starting early and contributing consistently is a major factor of overall accumulation of value; however, there are other things to consider to maximize to benefits of 529 plans. Today, we will focus on six keys to unlocking the power of 529 plans.

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