If you had W-2 employees in 2020 and/or 2021, you need to look at the Employee Retention Credit (ERC).
You can qualify for 2020 credits of up to $5,000 per employee and 2021 credits of up to $7,000 per employee for each of the first three quarters. That’s a possibility of $26,000 per employee.
In what clearly must have been a mistake, the IRS issued Notice 2021-49 to deny the employee retention credit (ERC) on the wages paid to most C and S corporation owners.
And remember, this is a tax credit—one of the very best things that tax law has to offer. True, it’s not as valuable as some other tax credits, because you have to reduce your payroll income tax deductions for the credits, but the ERC certainly puts you ahead.
During much of 2020 and 2021, you may have qualified for the Employee Retention Credit (ERC). Lawmakers created this tax credit in response to the COVID-19 pandemic.
If you have not claimed the ERC, you can amend your 2020 and 2021 payroll tax returns for the credit. (Amending the payroll is not difficult—so no sweat on that score.)
Usually, in times of economic dislocation such as the COVID-19 pandemic, the self-employed get no special government help. But this time it’s different. Because of the COVID-19 pandemic, you can qualify for the following seven benefits.
The CARES Act, enacted on March 27, 2020, created the PPP money, but it prohibited you from getting both PPP money and tax credits from the ERC; you had to choose one benefit or the other. Now, thanks to the new law, you can have both tax-free PPP money and tax credits from the ERC.
This is likely it—your last chance to obtain first- and second-draw Paycheck Protection Program (PPP) monies. A new law, the PPP Extension Act of 2021, extends the expiration date to the later of May 31 or when the money runs out.
Learn about the new Consolidated Appropriations Act (CAA) and how it affects you and your business this tax season!
Five Form 1040 tax breaks that were scheduled to expire on December 31, 2020, but have now been extended.
Embedded in the COVID-19 relief law is $900 billion for financial assistance. Here are four deductions or credits where Uncle Sam puts cash directly into your wallet.
Before the December 27, 2020, enactment of the new COVID-19 relief law, you may have chosen the PPP loan and given no thought to the employee retention credit. Remember, under the original law, you had to choose between the retention credit and the PPP loan. Millions chose the PPP loan route. But now the game has changed.
Who qualifies for first-draw PPP money today? You, most likely—if you file a business tax return and have not yet received any PPP monies. But don’t wait. The money is going to run out fast, and once it’s gone, so is the PPP. And the new PPP ends March 31, even if the money is not gone by then.
Did you miss out on your prior opportunities to receive tax-free PPP cash? Many did miss out. Why? One reason: the word “loan.” Who wants a loan? No one. Well, almost no one. But who wants a tax-free cash gift? If you do, read on for the details.
If you received an initial PPP loan, you can qualify for a second round (called a “second draw”) of tax-free PPP money. Learn the qualifications for the second-draw PPP money.
Done right the PPP loan is 100 percent forgiven. The word “loan” makes some businesses leery of this arrangement. Don’t be. The PPP monetary arrangement is a true “have your cake and eat it too” deal.
From what we know, when lawmakers originally passed the PPP they thought that under its provisions,
As you likely know by now, the Paycheck Protection Program (PPP) loan and its forgiveness process have been an ever-changing (and often confusing) ride so far.
The employee Social Security tax deferral ends on December 31, 2020. IRS guidance provides that the deferred taxes must then be paid “ratably” from wages paid from January 1, 2021, through April 30, 2021.
The PPP free-cash program to assist businesses during the COVID-19 pandemic is gaining traction and clarity. If you operate your business as a partnership, several recent developments have made the free-cash program more to your benefit.
When you are self-employed with no employees, the Paycheck Protection Program (PPP) is a COVID-19 gift designed to help you get through this pandemic. If you now have your PPP funds, we have identified nine insights for you.
