Wednesday, March 10, 2021

American Rescue Plan Act passes with many tax components - Journal of Accountancy

The House of Representatives passed the American Rescue Plan Act, H.R. 1319 , on Wednesday by a vote of 220–211. It now goes to President Joe Biden for his signature. He is expected to sign it quickly.

H.R. 1319 was first passed by the House on Feb. 27. The Senate made several amendments and passed its version of the bill on March 6. The bill then came back to the House for a final vote on Wednesday.

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The act makes the first $10,200 in unemployment benefits tax-free in 2020 for taxpayers making less than $150,000 per year.

Publisher: Journal of Accountancy
Date: 2021-03-10T15:18:00.000-05:00
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Quite a lot has been going on:

Bill filed to reduce Arkansas income taxes to zero

LITTLE ROCK, Ark. (KAIT) - A bill that will seek to reduce the state's income tax rate to zero was filed Wednesday in the state Capitol.

SB522, filed by Sen. Trent Garner (R-El Dorado) , would set the tax rates for Arkansans across the board at zero.

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"BOLD reforms require BOLD actions," Sen. Garner said. "I filed a bill to reduce our state income tax to ZERO. It's time to move Arkansas forward."

Right now, there are nine states without an income tax - neighboring states Tennessee and Texas, along with Alaska, Florida, Nevada, New Hampshire, South Dakota, Washington state and Wyoming, according to a Jan. 2021 report from Kiplinger .

Publisher: https://www.kait8.com
Date: 2021-03-10T23:59:04.301Z
Author: Region 8 Newsdesk
Twitter: @Region8News
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Why you may want to wait before filing your taxes this year - MarketWatch

We are well into tax season, and ordinarily I would say it's time to get serious about filing your 2020 Form 1040 if you've not already done so. But so far, 2021 has not been much more ordinary than 2020, the year we would all like to forget. Now, with the expected enactment of the Democrats' American Rescue Plan (Round 3 of COVID-19 related relief and stimulus) any day now, your 2020 return has become a moving target.

Plus, there are some other tax-saving changes that you may qualify for with your 2020 return. Bottom line: if you've not yet filed last year's return, please wait. You don't want to have to file an amended 2020 return to collect the tax-saving breaks I'm about to explain. Here goes.

Publisher: MarketWatch
Date: 2021-03-09T00:03:00-05:00
Author: Bill Bischoff
Twitter: @marketwatch
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Increase Your Third Stimulus Check By Filing Your Tax Return NOW (or Later) | Kiplinger

So, should you file now or wait to file until later? Which camp you're in generally depends on whether there were any significant changes to your family or financial situation last year. That's because your next stimulus check will be based on either your 2019 tax return or your 2020 return – whichever one was most recently filed and processed when the IRS starts processing your third stimulus payment.

Before getting into the nuts and bolts of how you might be able to impact the amount of your third stimulus check, it's important to understand when tax return filing season begins and ends, and when stimulus checks are expected to arrive.

Publisher: Kiplinger
Author: Rocky Mengle
Twitter: @Kiplinger
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Many things are taking place:

If you're self-employed, don't file your taxes without taking advantage of these two new tax

We are well into tax season. But if you're a busy self-employed sole proprietor, partner, or LLC member, you might not have gotten around to filing your 2020 Form 1040. If so, you are forgiven. The good news: if you've stayed on the sidelines so far, it could actually turn out in your favor — because there are some new tax breaks that you may be blissfully unaware of. Here's the story on two important ones. Take advantage if you can.

If you're self-employed, you know that the self-employment (SE) tax can take a big bite out of your wallet every year. Ouch. Thankfully, the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) allows you to defer half of your 2020 liability for the 12.4% Social Security tax component of the SE tax for the deferral period. The deferral period began on 3/27/20 and ended on 12/31/20. You must then pay the deferred SE tax amount in two installments:

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Publisher: MarketWatch
Date: 2021-03-10T00:03:00-05:00
Author: Bill Bischoff
Twitter: @marketwatch
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Wait to file taxes, Iowans urged, as rules shift on unemployment tax

Sa, founder of Community CPA & Associates, is usually concerned about the looming rush of income tax work this time of year. With the April 15 tax filing deadline just weeks away, she envisions customers piling into the company's offices in Des Moines, Iowa City and Bloomington, Minnesota, at the last minute. Like most accountants, she typically would prefer they came in earlier, spreading out the work for the staff.

Not this year, though. With Congress passing a COVID-19 relief package Wednesday that includes tax forgiveness for unemployment benefits — and with the Iowa Legislature debating a similar proposal — Sa told clients to pause any filings.

Publisher: Des Moines Register
Author: Tyler Jett
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Explained: How to File Taxes After 401(k) Withdrawal – NBC Bay Area
Publisher: NBC Bay Area
Date: 2021-03-10T17:37:01 00:00
Twitter: @nbcbayarea
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Lawmakers consider payment plan for coal mining back taxes

BILLINGS, Mont. (AP) — A lawmaker in Montana has proposed legislation intended to let county officials negotiate a collection agreement with coal companies that owe more than $8 million in delinquent taxes to the county.

Republican state Sen. Jason Small, who is sponsoring the bill, didn't name Big Horn County or Navajo Transitional Energy Co. in the proposal but said commissioners and company officials were clear it was drafted with the company's unpaid coal taxes in mind, The Billings Gazette reported Tuesday.

Publisher: AP NEWS
Date: 2021-03-11T00:51:50Z
Twitter: @ap
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