The Causes The COVID effect: The IRS has been in a state of disarray since the COVID pandemic shutdown operations in March 2020. The IRS call center desks are so tightly packed together that when one employee tested positive for COVID, they sent the entire floor home. This caused massive delays on the IRS telephone […]
Announced 12/23/22: IRS to delay implementation of new 1099K rules until 2023. News Release Starting with the 2022 tax year there is a new reporting requirement for third party payment processors, such as Venmo, Paypal, Amazon, Square and Cash App. The reporting threshold has been lowered from $20,000 to $600 this year. More taxpayers therefore […]
SINGLE Tax Rate 2021 2022 10% $1 – 9,950 $1 – 10,275 12% 9,951 – 40,525 10,276 – 41,775 22% 40,526 – 86,375 41,776 – 89,075 24% 86,376 – 164,925 89,076 – 170,050 32% 164,926 – 209,425 170,051 – 215,950 35% 209,426 – 523,600 215,951 – 539,900 37% Over 523,600 Over 539,900 MARRIED JOINT Tax […]
Tax Facts – 2 Year Comparison Here’s a quick review of some of the tax changes you’ll see from 2021 to 2022 as a result of inflation adjustments and new tax laws. Provision 2021 2022 +/- Business equipment Sec. 179 expensing deduction $1,050,000 $1,080,000 +$30,000 Total purchase limit for full Sec. 179 expensing deduction $2,620,000 […]
Standard Deduction: Single: $12,950 Joint returns & surviving spouses: $25,900 Married filing separately: $12,950 Head of household: $19,400 The standard deduction increases by $1,400 for a married taxpayer aged 65 or older or blind ($2,800 if both 65 and blind); by $1,750 for a single taxpayer aged 65 or older or blind ($3,400 if both […]
Businesses that are slowly emerging from the COVID-19 pandemic should now keep their eye on another looming obstacle: IRS audits. In late 2020, the IRS announced that it will increase tax audits of small businesses by 50 percent in 2021. Here are several mistakes to avoid if you do get audited by Uncle Sam. Mistake: Missing […]
Here are the key bullet points related to the latest Covid relief bill signed into law by President Trump on December 27, 2020. For Individuals Economic impact payments of $600 for individuals making up to $75,000 per year and $1,200 for married couples making up to $150,000 per year, as well as a $600 payment […]
New for the 2020 tax year, independent contractor payments greater than $600 per year are to be reported on Form 1099-NEC (Non Employee Compensation) instead of the Form 1099-MISC. Who Should File a Form 1099-NEC? If you hired an independent contractor in 2020 and paid them at least $600, you are required to file the […]
As a part of the CARES Act, many small business owners received funding through the Paycheck Protection Program (PPP) to cover expenses during the pandemic. If the funding was used for an approved purpose (payroll, mortgage/rent, utilities), the Small Business Administration will forgive those loans. On November 18, 2020, the Internal Revenue Service issued Revenue […]
Earlier this year, Congress passed several aid packages because of the pandemic. Listed below are the highlights that you should be aware of before year-end. Pandemic Unemployment Assistance (PUA) and regular Unemployment Compensation (UC) Both assistance programs are TAXABLE as ordinary income at the Federal level. If you did not have federal taxes withheld or […]