According to the IRS, "The payment will not reduce a taxpayer's refund or increase the amount they owe when they file their 2020 or 2021 tax return next year."
* * *
Any eligible individuals can claim a Recovery Rebate Credit on their 2020 tax return. The IRS had until Jan. 15 to distribute the second $600 stimulus payment and said that payments in the mail could take up to 3 to 4 weeks to arrive from that date.
When signing up for unemployment benefits, the form asked whether you wanted your federal or state withholdings taken out of those benefits. If you opted not to have those withholdings taken out, you may actually owe some taxes.
In case you are keeping track:
Bookkeeper Charged with Fraud and Tax Evasion | USAO-MA | Department of Justice
As alleged in the charging document, between 2017 and the spring of 2020, Lindau engaged in a scheme to defraud many of her clients by failing to pay over to the Internal Revenue Service and Massachusetts Department of Revenue (Mass. DOR) the payroll taxes that she withdrew from her clients' bank accounts. Lindau used her access to her clients' accounts to transfer funds that were to be used to satisfy her clients' payroll tax liabilities into her firm's business checking account.
5 Ways to Prepare for Higher Taxes Under President Biden | Kiplinger
There are several reasons to think you might be affected, especially if you are a high earner or have a significant amount saved in a tax-deferred retirement account, such as a 401(k). One, is that our national debt is growing as a response to the pandemic, just as it did during World War II. Following the war, income tax rates for high earners remained significantly higher than they are today for decades, with the top federal income tax rate at 91% for most of the 1950s.
It has also been said that he would like to repeal the Tax Cuts and Jobs Act before it expires at the end of 2025. So, with all that in mind, what can you do to help reduce your tax burden?
Supreme Court seeks Biden administration's views on work-from-home taxes
The U.S. Supreme Court sought the Biden administration's views on a state-against-state clash over billions of dollars in income taxes paid by people who work from home during the COVID-19 pandemic.
New Hampshire is seeking to sue directly at the high court to challenge the Massachusetts practice of taxing nonresidents who used to work in the state but now do their jobs from home.
The case could determine the fate of similar, permanent tax laws in New York and five other states. New Jersey and Connecticut filed a brief backing New Hampshire, telling the court they are losing massive sums to New York in violation of the Constitution.
Other things to check out:
Senators back plan to collect online taxes | MyPanhandle.com | WMBB-TV
TALLAHASSEE, Fla. (The News Service of Florida) — A proposal that could pump more than $600 million a year in tax dollars into coronavirus-damaged state and local coffers got off to a quick start Monday in the Florida Senate.
But backers of the proposal (SB 50), which drew unanimous support from the Senate Commerce and Tourism Committee, just don't want anyone calling tax collections required in the bill a "new" tax.
Sen. Joe Gruters, who doubles as chairman of the state Republican Party, said his proposal simply requires online businesses with no physical presence in Florida to collect sales taxes when customers in Florida make purchases.
EY's Carmine Di Sibio: The danger for business under Biden is taxes
EY CEO Carmine Di Sibio has suggested that the main threat to businesses under the Biden administration will be the possibility of higher corporate taxes.
Di Sibio told CNBC's Karen Tso that he thought U.S. President Joe Biden, who was sworn into office last Wednesday, would "listen to business."
* * *
He argued that the corporate tax cuts implemented by the Trump administration were "incredibly important to U.S. corporates," particularly for remaining competitive compared to other countries.
Officials Say Maine Can't Forgo Taxes From Paycheck Protection Funds.
Listen
Listening...
/ 3:20
Officials Say Maine Can't Forgo Taxes From Paycheck Protection Funds. Republicans Are Crying Foul
* * *
Congress opted not to tax the proceeds if employers spent it on payroll, rent and utilities. But the Mills administration said on Monday that it will not follow the federal government's lead — a decision that is coming under fire from Republicans and business leaders in Maine.
With Higher Taxes Possible, Here's What to Do Now - The New York Times
President Biden has already made clear his tax priorities. His proposed $1.9 trillion pandemic relief bill would cut taxes for lower- and middle-income Americans, and he is expected to call for higher taxes on corporations and the rich.
Last week, I wrote about long-term tax-planning issues, focusing on how proposed changes to the estate tax could affect many more people. This week, I'm turning my attention to some of the short- and medium-term tax proposals that could affect people's earnings and financial decisions.
No comments:
Post a Comment