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How the CARES Act changes deducting charitable contributions

Previously, charitable contributions could only be deducted if taxpayers itemized their deductions. However, taxpayers who don’t itemize deductions may take a charitable deduction of up to $300 for cash contributions made in 2020 to qualifying organizations. The law changed in his area due to the Coronavirus Aid, Relief, and Economic Security Act. The CARES Act […]

Security Summit partners warn taxpayers of new COVID-related text scam

The Internal Revenue Service, state tax agencies and the tax industry today warned of a new text scam created by thieves that trick people into disclosing bank account information under the guise of receiving the $1,200 Economic Impact Payment. The IRS, states and industry, working together as the Security Summit, remind taxpayers that neither the […]

Federal beneficiaries have more time to register for an Economic Impact Payment

Federal beneficiaries who got their Economic Impact Payment but did not register to receive a $500 supplemental payment per qualifying child can still register before 3 p.m. Eastern November 21, 2020. Those eligible include people with qualifying children who receive Social Security retirement, survivor or disability benefits, Supplemental Security Income (SSI), Railroad Retirement benefits and […]

IRS makes it easier to set up payment agreements

The Internal Revenue Service today announced a number of changes designed to help struggling taxpayers impacted by COVID-19 more easily settle their tax debts with the IRS. The revised COVID- related procedures will be helpful, especially to those who have a record of filing their returns and paying their taxes on time. Among the highlights […]

What taxpayers need to know about filing an amended tax return

If taxpayers discover a mistake on their tax return, most common errors can be fixed by filing Form 1040X. Some reasons people may need to file an amended return: Entering income incorrectly Not claiming credits for which they are eligible Claiming deductions incorrectly Incorrect filing status The IRS may correct math or clerical errors on […]

IRS Extends Economic Impact Payments Deadline

The Internal Revenue Service announced that the deadline to register for an Economic Impact Payment is now Nov. 21, 2020. This new date will provide an additional 5 weeks beyond the original deadline. People who typically do not file a tax return, and have not received an Economic Impact Payment have multiple options. Filers can […]

Taxpayers should know and understand their correct filing status

Generally, the taxpayer’s filing status depends on whether they are single or married on Dec. 31 and that determines their status for the whole year. However, more than one filing status may apply in certain situations. If this is the case, taxpayers can usually choose the filing status that allows them to pay the least […]

How people can reconstruct records lost in a natural disaster

Reconstructing records after a disaster is important for several reasons including insurance reimbursement and taxes. Records can help people prove their disaster-related losses. Estimated losses can help people get more recovery assistance like loans or grants. Financial Statements- people can gather past statements from their credit card company or bank. Many of these records may […]

Six tips for people starting a new business

Here are six tips for new business owners. Choose a business structure. The most common business structures are: Sole proprietorship: an unincorporated business owned by an individual. Partnership: an unincorporated business with ownership shared between two or more people. Corporation: also known as a C corporation. It’s a separate entity owned by shareholders. S Corporation: […]

IRS highlights higher penalties for tax returns filed after Sept. 14

The tax deadline was July 15 this year. Taxpayers who submitted an extension have until Oct. 15 to file and do not face the failure to file penalty if they file their taxes by the deadline. But taxpayers need to remember that an extension to file is not an extension to pay. Any taxes owed […]