Translations from Your Trusted Advisor.
On August 8th, President Trump issued an executive order on payroll tax deferrals for employees. The IRS has followed up that memo with Notice 2020-65. In short, employees making less than $4,000 bi-weekly can defer paying the 6.2% Social Security tax on their wages. This amount is not forgiven and will be collected from the employees’ wages from January 1 through April 30 of 2021.
Did you receive an unexpected refund from the IRS? Last week the IRS began issuing interest payments to individual taxpayers who received an overpayment on their taxes after April 15th. The IRS typically only issues interest payments on timely-filed refund claims issued more than 45 days after April 15th. Additional interest is being paid on 2019 overpayments as part of Coronavirus tax relief.
The IRS recently released draft forms for 2020 taxes, to be filed in 2021. The 1040 will look similar to the 2019 Form 1040, with a few modifications. The most significant changes on page 1 are:
Mallory Vincent, MBA •
With more time at home during the COVID 19 pandemic, now may be the time to start that degree you have always wanted to earn. Not only will you have fewer distractions due to your practically non-existent social life, but you could also get a tax credit or income adjustment on your 2020 tax return. Education credits are amounts that will reduce the amount of tax due of your tax return. They are based on qualified education expenses that you paid during the year including tuition and certain related expenses.
Recent presidential action seeks to extend key relief measures put in place as a result of the COVID-19 pandemic, but likely faces legal challenges.
On Saturday, August 8th, 2020, President Trump issued four executive orders regarding his administration’s response to the ongoing COVID-19 pandemic relating to: 1) unemployment, 2) evictions, 3) student loans, and 4) payroll taxes.
Time is running out to apply for a loan under the Paycheck Protection Program. You have until August 8th to apply for a loan for your business. You can apply for a loan through any existing SBA lender, typically your local bank. Funds spent on payroll and other qualified expenses may be forgiven if you meet certain criteria.
For more information on these loans check out the details on the SBA webpage or contact your accountant.
Mallory Vincent, MBA •
The CARES Act allows any taxpayer required to take required minimum distributions (RMDs) from IRAs, 401(k)s, 403(b)s, and certain other plans in 2020 to skip those RMDs in 2020. This includes anyone who turned 70 ½ in 2019 and would have had to take their first RMD by April 1, 2020.
The New Hampshire Self Employed Livelihood Fund (SELF) application period is open until Friday, July 17 at 4pm.
This is a grant available to New Hampshire self employed business owners who don't pay any wages and did not receive a Main Street Relief Fund.
For more information, check out the details here or take a look at the FAQs.
Not sure if you qualify? Contact your accountant!
Travis O'Hara •
Many Americans are going through tough times due to COVID-19; when times get tough, that's when scammers often work their hardest to take advantage of people! There are many ways that con artists may try to take advantage of support given to Americans by the government. Scammers may try phishing, fake-check scams, and phone calls to collect personal information.
Lena Rozzi, CPA •
Congratulations to the Class of 2020! Graduating from school can mark an exciting time for new graduates as they transition from being a student to becoming a working professional. This three part series will dive into some helpful information and tips on what to expect as you journey down your career path.
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