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 […]

People should be on the lookout for identity theft involving unemployment benefits

Taxpayers whose identities may have been used by thieves to steal unemployment benefits to file a tax return claiming only the income they actually received. Some taxpayers applied for and received unemployment compensation from their state. By law, unemployment benefits are taxable. Scammers also took advantage of the pandemic by filing fraudulent claims for unemployment […]

Is the NC Extra Credit Grant payment ($335-) taxable?

Many of us have had some reasons to believe that it is taxable. And perhaps some are also swayed to think that it is taxable since NC DOR has a subtraction for it on D-440 Sch. S line 33. However, please consider the following information. A “qualified disaster relief payment” is defined by section 139(b) […]

Taxpayers should beware of ghost preparers

As people begin to file their 2020 tax returns, taxpayers are reminded to avoid unethical ghost tax return preparers. A ghost preparer is someone who doesn’t sign tax returns they prepare. Unscrupulous ghost preparers often print the return and have the taxpayer to sign and mail it to the IRS. For e-filed returns, the ghost […]

As required by law, all first and second Economic Impact Payments issued; eligible people can claim Recovery Rebate Credit

The IRS announced today that, as required by law, all legally permitted first and second round of Economic Impact Payments have been issued and the IRS now turns its full attention to the 2021 filing season. Most people who are eligible for the Recovery Rebate Credit have already received it, in advance, in these two […]

What taxpayers need to know about claiming the credit for other dependents

Taxpayers with dependents who don’t qualify for the child tax credit may be able to claim the credit for other dependents. The maximum credit amount is $500 for each dependent who meets certain conditions. These include: Dependents who are age 17 or older. Dependents who have individual taxpayer identification numbers. Dependent parents or other qualifying […]

Guidance to taxpayers on identity theft involving unemployment benefits

The Internal Revenue Service today urged taxpayers who receive Forms 1099-G for unemployment benefits they did not actually get because of identity theft to contact their appropriate state agency for a corrected form. States issue Forms 1099-G to the taxpayer and to the IRS to report what taxable income, such as refunds or unemployment benefits, […]

All taxpayers now eligible for Identity Protection PINs

The Internal Revenue Service today expanded the Identity Protection PIN Opt-In Program to all taxpayers who can verify their identities. The Identity Protection PIN (IP PIN) is a six-digit code known only to the taxpayer and to the IRS. It helps prevent identity thieves from filing fraudulent tax returns using a taxpayers’ personally identifiable information. […]

New things taxpayers should consider as you get ready to file taxes in 2021

New things taxpayers should consider as you get ready to file taxes in 2021 Here are some new key things people should consider when filing their 2020 tax return: 1. Recovery rebate credit: If you did not receive Economic Impact Payment in 2020 2. Single and received less than $1200 3. Married, filing jointly for […]