Tag: credit

  • Planning for Year-End Gifts with the Gift Tax Annual Exclusion

    Planning for Year-End Gifts with the Gift Tax Annual Exclusion

    As we approach the holidays and the end of the year, many people may want to make gifts of cash or stock to their loved ones. By properly using the annual exclusion, gifts to family members and loved ones can reduce the size of your taxable estate, within generous limits, without triggering any estate or…

  • Eligible Businesses: Claim the Employee Retention Tax Credit

    Eligible Businesses: Claim the Employee Retention Tax Credit

    The Employee Retention Tax Credit (ERTC) is a valuable tax break that was extended and modified by the American Rescue Plan Act (ARPA), enacted in March of 2021. Background Back in March of 2020, Congress originally enacted the ERTC in the CARES Act to encourage employers to hire and retain employees during the pandemic. At…

  • Many Parents Will Receive Advance Tax Credit Payments Beginning July 15

    Many Parents Will Receive Advance Tax Credit Payments Beginning July 15

    Eligible parents will soon begin receiving payments from the federal government. The IRS announced that the 2021 advance child tax credit (CTC) payments, which were created in the American Rescue Plan Act (ARPA), will begin being made on July 15, 2021. How have child tax credits changed? The ARPA temporarily expanded and made CTCs refundable…

  • Unemployed Last Year?  Buying Health Insurance This Year?  You May Benefit from Favorable New Changes

    Unemployed Last Year? Buying Health Insurance This Year? You May Benefit from Favorable New Changes

    In recent months, there have been a number of tax changes that may affect your individual tax bill. Many of these changes were enacted to help mitigate the financial damage caused by COVID-19. Here are two changes that may result in tax savings for you on your 2020 or 2021 tax returns. The 2020 return…

  • Changes to Premium Tax Credit Could Increase Penalty Risk for Some Businesses

    Changes to Premium Tax Credit Could Increase Penalty Risk for Some Businesses

    The premium tax credit (PTC) is a refundable credit that helps individuals and families pay for insurance obtained from a Health Insurance Marketplace (commonly known as an “Exchange”). A provision of the Affordable Care Act (ACA) created the credit. The American Rescue Plan Act (ARPA), signed into law in March 2021, made several significant enhancements…

  • New Law Tax Break May Make Child Care Less Expensive

    New Law Tax Break May Make Child Care Less Expensive

    The new American Rescue Plan Act (ARPA) provides eligible families with an enhanced child and dependent care credit for 2021. This is the credit available for expenses a taxpayer pays for the care of qualifying children under the age of 13 so that the taxpayer can be gainfully employed. Note that a credit reduces your…

  • New COVID-19 Relief Law Extends Employee Retention Credit

    New COVID-19 Relief Law Extends Employee Retention Credit

    Many businesses have retained employees during the COVID-19 pandemic and enjoyed tax relief with the help of the employee retention credit (ERC). The recent signing of the American Rescue Plan Act (ARPA) brings good news: the ERC has been extended yet again. The original credit As originally introduced under last year’s CARES Act, the ERC…

  • Reasons Why Married Couples Might Want to File Separate Tax Returns

    Reasons Why Married Couples Might Want to File Separate Tax Returns

    Married couples often wonder whether they should file joint or separate tax returns. The answer depends on your individual tax situation. It generally depends on which filing status results in the lowest tax. But keep in mind that, if you and your spouse file a joint return, each of you is “jointly and severally” liable…

  • What Is Your Taxpayer Filing Status?

    What Is Your Taxpayer Filing Status?

    For tax purposes, December 31 means more than New Year’s Eve celebrations. It affects the filing status box that will be checked on your tax return for the year. When you file your return, you do so with one of five filing statuses, which depend in part on whether you’re married or unmarried on December…

  • Take Advantage of the Gift Tax Exclusion Rules

    Take Advantage of the Gift Tax Exclusion Rules

    As we head toward the gift-giving season, you may be considering giving gifts of cash or securities to your loved ones. Taxpayers can transfer substantial amounts free of gift taxes to their children and others each year through the use of the annual federal gift tax exclusion. The amount is adjusted for inflation annually. For…