Tax Warrior Chronicles

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: #1, #2#3#4#5#6#7,#8,#9,#10,#11,#12,#13, #14, #15#16#17, #18,

#19, #20, #21, #22, #23

 

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 changes

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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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Electric Vehicle Tax Credit Explained, Tesla No Longer Eligible

Posted on Mon, Feb 15, 2021

By; Sam Battista

 

To protect the environment and combat climate change, Congress passed laws resulting in Internal Revenue Code Section 30D, which provides a tax credit for the purchase of qualified electric motor vehicles. Let's discuss what vehicles qualify and other important details about the Plug-in Electric Drive Motor Vehicle Credit. Aspiring Tesla owners should pay close attention.

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Writing Off Business Losses from 2020 – How It’s Different Than Prior Years

Posted on Thu, Feb 11, 2021

By: Jenny Zhang, CPA, MT

 

Undoubtedly, 2020 was a difficult year for businesses due to the pandemic. Many sustained significant losses because of temporary closings or reduced sales. Today, we will focus on 2020 tax law changes related to business losses and how to best utilize those losses in your tax filings.

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Philadelphia Wage Tax Refunds – What’s New for 2020? Plenty!

Posted on Wed, Feb 10, 2021

Among the many issues created by the pandemic, local income tax withholding in Pennsylvania caused administrative headaches for Pennsylvania employers over the last several months (as explained in our previous blog). In today’s blog, we will discuss the Philadelphia Wage Tax Refund process for 2020.

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Home Office Deductions and the Coronavirus

Posted on Tue, Feb 09, 2021

By: Ashley Hampton, MPA

 

2020 was an extraordinary and challenging year. In fact, a Stanford University study found that roughly 40 percent of the U.S. work force now works from home full time due to COVID-19. This has led many to question the effect this has on their taxes. Do you now qualify for the home office deduction? Did the CARES Act account for this wave of remote workers? Does my state follow the federal tax law? Continue reading to find your answers.

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PPP Update #21 – PPP Tax Treatment for State & Local Taxes

Posted on Wed, Feb 03, 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: #1, #2#3#4#5#6#7,#8,#9,#10,#11,#12,#13, #14, #15#16#17, #18,

#19, #20, #21, #22, #23

 

Is it already February? The 2020 filing season is here and this year brings new challenges compared to other filing seasons. In PPP Update #19, we discussed the federal change to deductibility of expenses using Payroll Protection Program (PPP) funds, but what about states and localities? As we have become accustomed to, the PPP bares unique issues.

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Protecting Your Heirs from Taxes and Creditors After the SECURE Act

Posted on Fri, Jan 29, 2021

By: Elizabeth M. K. Witko, MAcc, MSF, and Robert N. Polans, CPA, MT, PFS

 

The tax impact of the Setting Every Community Up for Retirement Enhancement (SECURE) Act’s 10-year limited stretch can be a “keep you up at night” concern for individuals who have amassed substantial qualified retirement accounts. Often, these individuals have a substantial portion of their investment portfolios accumulating and growing in tax-deferred retirement accounts, and as a result of the SECURE Act, could be passing down a massive income tax liability to their heirs.

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