Starting in 2022 the gift tax exclusion is $16,000 per donor in a calendar year. […]
IRS Amended Returns as of 09-08-21
IRS is behind on alot of stuff…… Including, as of 09.08.21 …. 2.8 MILLION Amended Returns have yet to be processed! […]
Unemployment Compensation 2020 Taxation
Unemployment Compensation in 2020 On March 11, 2021 the American Rescue Plan Act of 2021 was enacted. One of the provisions excludes up to $10,200 of unemployment compensation paid in 2020 for those with adjusted gross income (AGI) less than $150,000. As this law was enacted during the tax filing season, the anticipated time until […]
02-18-21 IRS behind in Processing 11 million 2019 returns!
A group of Republicans on the House Ways and Means Oversight Subcommittee sent a letter Wednesday 02.18.21 to IRS Commissioner Charles Rettig complaining about the backlog of approximately 11 million unprocessed tax returns from the 2019 tax year. The backlog of unprocessed mail from the pandemic has created a ripple effect that’s continuing into this year’s tax-filing […]
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LLC ROADMAP (Operating Business with Rental Activity)
ACCOUNTING (You have TWO businesses) • The bookstore or contracting business (example) is an operating business. Keep revenue and expenses separate from the rental business. This does not mean a separate checking account but it may be easier to maintain records. That is up to you. o The bottom line profit is taxable for income and […]
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2020 Efile Personal Tax Start Date is Feb 12, 2021
The opening day for filing 2020 individual returns electronically is scheduled for Monday, February 12, 2021, see IR-2021-16, which explains the February 12, 2021 start date for individual tax return filers allows the IRS time to do additional programming and testing of IRS systems following the December 27, 2020 Consolidated Appropriations Act (H.R. 133) tax […]
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IRS Commissioner-BACKLOG of UNOPENED
November 20, 2020 Currently, the IRS has approximately three million pieces of mail and one million returns that remain unprocessed, IRS Commissioner Charles “Chuck” Rettig said. The IRS mail backlog is down from where it sat at over five million last month. Testifying before the House Ways and Means Oversight Subcommittee on November 20, Rettig […]
2018 FACTS on WHO PAYS TAX
2018 FACTS on WHO PAYS TAX The top 1% of individual filers paid 40.08% of all U.S. income taxes for 2018 per IRS (up from 2017’s figure of 38.47%). The top 1% earned at least $540,009. The top 5% earned at least $217,913 and paid 60.30% of total income tax. The top 10%, those with AGIs […]
NOL 2020 COVID-19
COVID-19 related changed to Net Operating Losses (NOL) CARES Act reverses the general ban on carrybacks of NOLs by requiring NOLs arising in 2018, 2019 or 2020 to first be carried back five years, unless the taxpayer elects to instead carry the NOLs forward. It suspends the 80% taxable income limit for NOLs in 2018 to […]
2020 Social Security & Full Retirement Age (FRA)
If you are younger than full retirement age and earn more than the yearly earnings limit, the amount you receive may be reduced. If you are under full retirement age for the entire year, $1 is deducted from your benefit payments for every $2 you earn above the annual limit. For 2020, that limit is $18,240. In the […]
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