Whether it's something they've been doing for years or something they just started to make extra money, taxpayers must report income earned from hobbies in 2020 on next year's tax return. What's the difference between a hobby and a business? A business operates to make a profit. People engage in a hobby for sport or [...]
Marking a major milestone in tax administration, the Internal Revenue Service announced that taxpayers can now submit Form 1040-X electronically with commercial tax-filing software. As IRS e-filing has grown during the past 30 years, the 1040-X, Amended U.S. Individual Income Tax Return, has been one of the last major individual tax forms that needed to be [...]
The home office deduction allows qualifying taxpayers to deduct certain home expenses on their tax return. With more people working from home than ever before, some taxpayers may be wondering if they can claim a home office deduction when they file their 2020 tax return next year. Here are some things to help taxpayers understand the home office deduction [...]
Every year the IRS mails letters or notices to taxpayers for many different reasons. You may receive a notice or letter for one of the following reasons: You have a balance due. You are due a larger or smaller refund. The IRS has a question about your tax return. The IRS needs to verify your [...]
Paycheck Protection Program PPP Loan forgiveness application form. Borrowers who received Paycheck Protection Program (PPP) loans under the Coronavirus Aid, Relief, and Economic Security (CARES) Act are wanting to know if they will qualify for PPP loan forgiveness. Many business owners and even larger companies are feeling anxious about the requirements for loan [...]
Temporary Suspension of Limits on Charitable Contributions In most cases, the amount of charitable cash contributions taxpayers can deduct on Schedule A as an itemized deduction is limited to a percentage (usually 60 percent) of the taxpayer’s adjusted gross income (AGI). Qualified contributions are not subject to this limitation. Individuals may deduct qualified contributions of [...]
With cyberthieves active during COVID-19, organizations are urged to maintain a heightened state of alert as cybercriminals seek to exploit Covid-19 concerns. There are security steps that can be taken to ensure you are fully protecting client data whether working in the office or a remote location. To guard against cyberthreats, employers should consider: Requiring [...]
We do not normally recommend early withdrawals from retirement accounts but we understand these are not “normal” times. Many families are struggling with loss of income and left with the dilemma of how to cover their day to day living expenses. That’s why we wanted to share this information. In a recent press release, The [...]
Some nursing homes have demanded that low-income residents turn over their $1,200 economic stimulus checks — a cash grab lawmakers want to halt! The stimulus payments belong to the recipients NOT the organizations providing the care. Lawmakers, the Federal Trade Commission, patients and their families brought forth complaints that nursing homes and other businesses were [...]
To start your business you should know these things: 1) Alabama Tax Registration Before starting your small business in Alabama, you must acquire the necessary identification numbers, licenses or permits for tax registration. Common forms of tax for most businesses will include sales and use tax, unemployment tax and income tax withholding. However, the list of [...]