Be Prepared For These Pandemic-Related Tax Surprises
Don’t get shocked by a high tax bill! Be prepared for these pandemic-related tax surprises when you file your 2020 tax return. Taxes on unemployment income. If you received unemployment benefits in 2020, you need to report these benefits on your tax return as taxable income. Check to see if either federal or state taxes were…
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More Stimulus Payments on the Way
You could soon see another stimulus payment in your bank account with the recent passage of the Emergency Coronavirus Relief Act of 2020, which means more direct relief to you and your family. Here are some of the major points you need to know that are buried inside this $900 billion piece of legislation. Direct…
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Tax Effect of PPP Loan Forgiveness
The time has come for businesses to start the application process for Payroll Protection Program (PPP) loan forgiveness. Last week, the IRS released Revenue Ruling 2020-27 which provides clarification on PPP loan forgiveness and deductibility of expenses incurred with PPP proceeds. Below is a summary for business owners. Please feel free to contact us if…
Read MoreCOVID Financial Support for Businesses
On Nov. 20 Gov Inslee announced support for WA businesses in the form of support grants and a recovery loan program. Working WA Small Business Grants up to $20,000: Application portal became available the week of Nov. 30 http://startup.choosewashingtonstate.com/links/crisis/covid-19-resources/?utm_medium=email&utm_source=govdelivery Priority will be given to: Applications filed prior to Dec. 10 Small business with annual revenues…
Read MoreIdeas to Help the Virtual Learning Challenge
Virtual learning is a way of life again for many kids as we head towards winter. Mayo Clinic psychologist Dr. Craig Sawchuk says that families will need to adapt to changing circumstances this school year. “We’ve all been dealing with uncertainty,” Sawchuk said in a recent Mayo Clinic Q&A podcast. “We need to be flexible…
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Build a Fortress Defense for PPP Loan Forgiveness
More than 70% of small businesses in America now have loan proceeds from the Paycheck Protection Program (PPP) to help retain employees during the current pandemic. The entire amount of a PPP loan is eligible to be forgiven if the funds are used for qualified expenses. Recent legislation liberalizes the terms of loan forgiveness for…
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Thinking about the Payroll Protection Program loan forgiveness? We have answers!
Thinking about the Payroll Protection Program loan forgiveness? You are not alone. For those of you who received funding in the first round of payments, that 8-week deadline for using the funds is fast approaching. Many of you have looked at the loan forgiveness application, asked questions and made plans. We want to tell you, things are going to…
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Be Prepared for Pandemic Tax Surprises
Numerous new laws provide economic relief to individuals and businesses hardest hit by this year’s pandemic. This much-needed financial assistance, however, comes with a few strings attached. Here are three potential surprises if you use the available economic relief packages: Getting a tax bill for unemployment benefits. While the $1,200 economic impact payments most Americans…
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Think Before Tapping 401(k) as Emergency Fund
Do you need a quick infusion of cash? Under the Coronavirus Aid, Relief, and Economic Security (CARES) Act, you may be able to take money out of a qualified plan, like a 401(k), or an IRA, with favorable tax consequences. But should you do it? You might view withdrawing money from a retirement account as…
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Stimulus Options For Sole Proprietors
As a self-employed person (sole proprietor) does talk of the various stimulus benefits for businesses surrounding the COVID-19 response have you feeling left out? Don’t despair! As a non-employer without payroll expenses, you qualify for two programs: Pandemic Unemployment Assistance benefits Payroll Protection Program (yes, even without payroll expenses you qualify with income from your Schedule…
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