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IRS to recalculate taxes on unemployment benefits; refunds to start in May

To help taxpayers, the Internal Revenue Service announced today that it will take steps to automatically refund money this spring and summer to people who filed their tax return reporting unemployment compensation before the recent changes made by the American Rescue Plan. The legislation, signed on March 11, allows taxpayers who earned less than $150,000 […]

IRS begins delivering third round of Economic Impact Payments to Americans

WASHINGTON – The Internal Revenue Service announced today that the third round of Economic Impact Payments will begin reaching Americans over the next week. Following approval of the American Rescue Plan Act, the first batch of payments will be sent by direct deposit, which some recipients will start receiving as early as this Additional batches […]

Third Stimulus Package

On March 11, 2021, the third COVID stimulus package was signed into law, including direct payments. The IRS emphasizes that there is no action required by eligible individuals to receive this third payment. Payments are automatic. Additional information related to eligibility or timing of these payments has not been made available. Who qualifies for this […]

Pending Legislation

The president is expected to sign a bill this week which will provide relief for the continued impact of COVID-19. The American Rescue Plan Act of 2021 extends unemployment benefits, provides funding for state and local governments, supports vaccine rollouts, expands the child tax credit, makes a portion of unemployment compensation nontaxable for certain filers, […]

Tax Time Guide: Select a tax return preparer with care

The Internal Revenue Service today reminded taxpayers to choose a tax return preparer with care. Even though the vast majority of tax return preparers provide honest, quality service, some cause great harm through fraud, identity theft and other scams every year. It’s very important to select the right tax professional. After all, people trust them […]

CARES Act

CARES Act Late Wednesday night, the Senate passed in a 96-0 vote the $2 trillion Coronavirus Aid Relief, and Economic Recovery Act (Cares Act). Individual Provisions Recovery Rebates for Individuals Recovery rebate for each taxpayer of $1,200 ($2,400 for joint returns). Plus $500 for every qualifying child. Rebates are means tested and begin phasing out […]

Student Loan Repayment

The CARES Act helps most individual federal loan borrowers. There is a provision for student loan assistance programs that will benefit all student loan borrowers, but Private and FFEL loan borrowers need to contact their lender or services to see if they offer this new benefit. Summary of Cares Act Stimulus changes for federal loans: […]

Effect Date for Employment Tax Credits Under the Families First Coronavirus

Effect Date for Employment Tax Credits Under the Families First Coronavirus Response Act Notice-2020-21 Notice 2020-21 provides that employment tax credits for paid qualified sick leave wages and paid qualified family leave wages required by the Families First Coronavirus Response Act (“the Act”) will apply to wages and compensation paid for periods beginning on April […]

IRS unveils new People First Initiative; COVID-19

IRS unveils new People First Initiative; COVID-19 Projected start date April 01-July 15 To help people facing the challenges of COVID-19 issues the Internal Revenue Service announced today a sweeping series of steps to assist taxpayers by providing relief on a variety of issues ranging from easing payment to postponing compliance actions. The People First […]

Treasury, IRS and Labor announce plan to implement Coronavirus-related paid leave

The U.S. Treasury Department, Internal Revenue Service and the U.S Department of Labor announced that small and midsize employers can began taking advantage of the two new refundable payroll tax credits, designed to immediately and fully reimburse them dollar-for-dollar, for the cost of providing Coronavirus-related leave to their employees. This relief to employees and small […]