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From what I understand, the charitable above line deduction is $300 per return for 2020. For 2021, it is raised to $600 for married filing joint.

I just discovered we can now add our logo to the Billing Invoice. Go to Customizer Master forms to do this. Definitely makes the invoices look way more professional.

Per PA Dept of Revenue Website: Taxability of Paycheck Protection Plan Loans "Paycheck Protection Plan loans used to pay business expenses during the COVID-19 pandemic that are subsequently forgiven by the lender will constitute as taxable income for Pennsylvania personal income tax purposes. The business can deduct proceeds from the forgiven loan that are used to cover ordinary, necessary and reasonable business expenses related to that income." "For corporate net income tax, Pennsylvania taxable income is based upon federal taxable income. Pennsylvania law does not include an add back to or deduction from federal taxable income for forgiveness of a Paycheck Protection Plan loan." _____________________________________________________________________________________________________________________________________________________________________ Is this saying that corporations will not have any addback for the forgiven loan and will also get to deduct expenses paid with forgiven PPP loans (since based on federal taxable income) but self employed (sch C filers) will have taxable income for the forgiven loans? I know the expenses will be deductible if paid from the forgiven PPP loan but this isn't the same treatment as the corps get?

I was updating life and disability coverage, and had to admit, it has been more than 20 years since I was involved in any of the "risky" activities... Good for the policy costs, but sometimes I long for those days of perceived invincibility. My dad was about 25 in the image for my profile. I was but a pea sized being. Those cars were built like tanks, many raced for more than a decade. The drivers were mere pinballs wearing penny loafers, chinos, and t-shirts, with a leather object which kept their hair in place more than protecting their brain.

I think the powers that be are making communications MORE complex as they try to give us more electronic means to communicate. But I do understand the need for security. (My To-Do List includes "register for Secure Access." But my To-Do List is long!) Maybe the summer phase is when the taxpayer can initiate the 8821/2848 if he can qualify for secure access; then it goes to us and directly to CAF and is processed faster, maybe. I remember something about 30% of tax payers will qualify to register for Secure Access.

The first year I broke my ankle with an ER visit. My out of pocket for the year was around $500. Health share plans are not for every one, but for those who pledge to live a healthy lifestyle. The plan promotes wellness and prevention. So if you are a chain-smoking, pro motocross racer that eats three times a day at McDonalds; you need not apply!

Depending on where they are on the bell curve for 2020, if 2019 is higher and gives them more EIC, they can use 2019 instead of 2020. It's a choice to use 2019 if it's higher. Per IR-2021-10: Also new this year is the option to use prior year income amounts when computing the Earned Income Tax Credit and the Additional Child Tax Credit.

Here is a start, but I wouldn't try to unravel this by myself. SS is the oldest entitlement program and goes back 85 years. During that time it has managed to create volumes of byzantine, ambiguous and contradictory rules and regulations, all written in legalese. What your client needs to do is consult an attorney that specializes in SS benefits. https://maximizemysocialsecurity.com/what-if-im-eligible-both-railroad-retirement-and-social-security

I was in a webinar today (KnoxTaxes/Taxaroo) and another tomorrow (NYSSEA) and four last week and.... Forbes has some good articles and blogs by Tony Nitti. IRS Issue Number IR-2021-10 has last-minute changes to tax laws.

1. For EIC purposes, a tax payer may use his 2020 earned income OR his 2019 earned income IF IT IS HIGHER, to calculate his 2020 EIC. 2. See 1. 3. $300 for all filing statuses on 2020 returns, except $150 for MFS. (I don't think the law gives 1/2 to each MFS, so there may be an update on that). 2021 returns get $300 for all filing statuses, except $600 for MFJ. Think of it as $300 per return for 2020 (MFS return splitting a MFJ return in half) and $300 per taxpayer/spouse for 2021. 4. The Recovery Rebate Credit is a 2020 credit. The EIP1 and EIP2 were advances on a 2020 credit. Both EIP1 and EIP2 will be reconciled on the 2020 return. (The law did say the EIP2 is to go out by 15 January 2021.) Tax Payers might receive a positive refundable RRC; but the RRC will not go below zero, so no one has to repay a RRC on their tax return.

Just received an answer to my question via the facebook ATX support group, ATX creates two 1096's, you need to click on the arrow for the next page and there you will see the 1096 for NEC's. There shouldn't be any problem efiling them.

The IRS says "each month or part of a month" and nothing about the 15th of each month. So, all of Jan is 5% and then after Jan 31 another 5%.

I think that you can only have one set of 1099 forms per 1096. Since they now use different 1099s (MISC vs NEC) I believe you will have to do separate 1096s. I believe if you are printing the forms and not e-filing, you can print the 1096 from within the 1099 print manager and get them each to print. I don't know how you can e-file if you have both forms within the same file. Maybe someone else can answer that one.

Yes, ma'am!

Kathy Morgan, EA, Ustcp: For folks looking - the IRS has posted new draft instructions for the 1040 that includes the new worksheet for computing both EIP payments and the credit (page 59 of the instructions). We will have several examples in class on Saturday.

Tom: do NOT charge too little or accept the wrong clients. You are NOT a newbie that needs any tire-kicker that happens to call. You are an intelligent and experienced preparer and have this water cooler surrounded by colleagues. Take ONLY the clients you want and CHARGE THEM WHAT YOU'RE WORTH. PS That goes for ALL of you, whether it's your first year or your last.

I won't have any PPP either that I know of. I almost had a same sex couple. They were planning on getting married in December, 2020, but postponed. I have at least one more year to worry about it. Still 2 single returns.

As we begin the new year, remember that without the rain, there would be no rainbow. God works all things for the good, for those who follow Him, and I trust that God has gone before me and prepared the way... no matter what. This year might well be the most challenging for us tax pros. I'm thankful that we have each other. So, be kind, drink wine, and keep smiling! Cheers!