Resources For Individual Taxpayers
COVID-19 RESOURCE CENTER
COBRA Provisions Play Critical Role in COVID-19 Relief Law
During the COVID-19 pandemic, many employees and their families have lost group health plan coverage because of layoffs or reduced hours. If your business has had to take such steps, and it’s required to offer continuing health care coverage under the Consolidated...
Recent IRS, PA and NJ Announcements Extend the Individual Tax Filing Deadline to May 17, 2021
The IRS has announced that the federal income tax filing deadline for individuals filing Form 1040 for the 2020 tax year is extended from April 15, 2021, until Monday, May 17, 2021. The IRS extended the deadline to provide relief to taxpayers facing challenges as a...
The American Rescue Plan Act has passed: What’s in it for you?
Congress has passed the latest legislation aimed at providing economic and other relief from the COVID-19 pandemic that has haunted the country for the last year. President Biden is expected to sign the 628-page American Rescue Plan Act (ARPA), which includes $1.9...
2021 individual taxes: Answers to your questions about limits
Many people are more concerned about their 2020 tax bills right now than they are about their 2021 tax situations. However, it’s a good idea to acquaint yourself with tax amounts that may have changed for 2021. Below are some Q&As about tax amounts for this year....
Did you make donations in 2020? There’s still time to get substantiation.
If you’re like many Americans, letters from your favorite charities may be appearing in your mailbox acknowledging your 2020 donations. But what happens if you haven’t received such a letter — can you still claim a deduction for the gift on your 2020 income tax...
The Consolidated Appropriations Act Brings COVID-19 Relief (and More) to Individuals
The Consolidated Appropriations Act, 2021 (CAA), passed on December 27, 2020, provides billions of dollars in long-awaited COVID-19 and economic relief. Highlighted here are some of the provisions most likely to affect individual taxpayers. Recovery rebates The most...
IRS Releases 2021 Standard Mileage Rates
The IRS released the optional standard mileage rates for 2021. Most taxpayers may use these rates to calculate deductible costs of operating vehicles for business, medical, and charitable purposes. The standard mileage rates for 2021 are: 56 cents per mile for...
New Bill Addresses Paycheck Protection Program (PPP) Expense Deductibility, New Round of PPP Loans, Extended Sick Leave Benefits and More Stimulus Payments
Late Monday night, Congress passed a $900 billion Coronavirus relief bill. The President is expected to sign it once it reaches his desk. This bill is massive coming in at 5,593 pages. Following is a quick summary of the items most pertinent to our clients. PPP...
IRS Issues Guidance on Executive Order to Defer Payroll Taxes
Late Friday, the IRS issued Notice 2020-65 entitled Relief with Respect to Employment Tax Deadlines Applicable to Employers Affected by the Ongoing Coronavirus (COVID-19) Disease 2019 Pandemic. This Notice provides guidance to employers on how to implement the...
Pandemic Planning: Tax Savvy Moves to Consider Now
It’s hard to believe we are already over half-way through 2020. Challenged with the COVID-19 crisis we have faced the unexpected, unanticipated, and unimaginable. Navigating this pandemic has caused us all to think differently and more strategically about all aspects...
Required Minimum Distributions (RMDs): August 31 is the Deadline to Roll Funds Back Into Your IRA
You may recall the CARES Act suspended RMDs for 2020. The IRS reminds taxpayers who took RMDs at any point in 2020 prior to the passage of the CARES Act that you may roll the funds back into your IRA by August 31, 2020, as the normal 60-day window for these rollovers...
IRS Notices: What You Need to Know
Did you receive a notice from the IRS advising you that you owe money for your 2019 tax return? Had you already paid the amount being requested? Unfortunately you are not alone. The IRS is currently working through an enormous backlog of mail due to the Coronavirus...
How the Executive Order to Defer Payroll Taxes Impacts Employers and Employees
After Congress failed to act with additional economic relief legislation, the President issued four executive orders this past weekend. The most significant order provides for a deferral of payroll taxes. The remaining three orders address increased unemployment...
IRS Provides Relief for Mid-Year Changes to Health and Dependent Care Flexible Spending Arrangements (FSAs)
In response to the COVID-19 crisis, on Tuesday, May 12 the IRS announced relief for Section 125 cafeteria plans during calendar year 2020, providing increased flexibility for: employer-sponsored health coverage health Flexible Spending Arrangements (health FSAs)...
IRA-to-Roth IRA Conversion Opportunity Exists in Current Economic Downturn
While an economic downturn is never good news for investors, it presents a potentially valuable opportunity for individuals considering converting their traditional IRA (and funds that have been rolled over from a qualified plan) to a Roth IRA. It is important to...
Temporary Waiver of Required Minimum Distributions Under CARES Act
The Coronavirus Aid, Relief and Economic Security (CARES) Act waives all required minimum distribution (RMD) requirements for tax-qualified defined contribution plans including IRAs for the calendar year 2020. The 2020 RMD waiver applies to individuals who have...
Pennsylvania Begins Implementing New Federal Unemployment Benefits: Eligible Claimants Get Extra $600 Starting Week of April 13
An announcement from Governor Wolf’s office on April 10 stated “The Pennsylvania Department of Labor & Industry (L&I) is implementing new federal unemployment…
Internal Revenue Service (IRS) Launches New Tools for Economic Impact Payments
The IRS launched a new tool on their website to help non-filers register for Economic Impact Payments. According to the IRS individuals who should be using this tool are eligible U.S. citizens or permanent residents who: Had gross income that did not exceed $12,200...
CARES Act | Recovery Rebates for Individuals
The Coronavirus Aid, Relief, and Economic Security (CARES) Act has made available over $300 billion for direct cash payments to most U.S. individuals and families. The rebate will consist of $1,200 per individual ($2,400 for joint filers), plus $500 per child....
CARES Act | Special Rules for Using Retirement Funds for Coronavirus Costs
If you take money out of a qualified retirement plan before age 59 1/2, you not only pay income tax on the distribution, but generally there is a 10% penalty as well. There are several exceptions to the penalty and the CARES Act adds a new one, allowing a taxpayer to...