Another Happy Client

April 27, 2021/in Blog /by John Dillard

What Clients of His CPA Have to Say

Unemployment Tax Law Changes

March 23, 2021/in Blog /by John Dillard

Unemployment Taxability Changes

The American Rescue Plan signed March 11, 2021 allows each U.S. Taxpayer (does not apply to non-residents) to exclude in 2020 up to 10,200 of Unemployment from their taxable income as long as your Adjusted Gross Income is less than $150K.

“If you have already filed your 2020 Form 1040 or 1040-SR, there is no need to file an amended return (Form 1040-X) to figure the amount of unemployment compensation to exclude. The IRS will refigure your taxes using the excluded unemployment compensation amount and adjust your account accordingly. The IRS will send any refund amount directly to you.” — IRS Website

To Read More Visit

https://www.irs.gov/faqs/irs-procedures/forms-publications/new-exclusion-of-up-to-10200-of-unemployment-compensation

The Employee Retention Credit

March 8, 2021/in Blog /by John Dillard

The Employee Retention Credit

Recent tax law changes have broadened the Employee Retention Credit to businesses. It is my understanding these changes relate to businesses that were either:

-Forced to close due to Government Order (a non-essential service).

-Gross Receipts fell when comparing to the same quarter in 2019 (by over 50% in 2020 or 20% in 2021 (likewise compared to 2019)).

For 2020 the credit is equal to 50% of Qualified Wages maxed at 5,000 for the year. Credit continues to apply until a quarter where gross receipts are 80% of gross receipts of the same quarter in the previous year.

For 2021 the credit is equal to 70% of Qualified Wages maxed at 7,000 per quarter (for first two quarters of 2021). 2021 quarters likewise are compared to the same quarters in 2019.

A business can qualify if more than a “nominal portion” of its operations are “partially suspended” as a result of a government order restricting travel, group meetings & commerce (regardless of whether had a reduction of operations from March 12, 2020 through December 31, 2020.

IRS defines “nominal” to be either:

-Gross Receipts from that portion of a business is at least 10% of total gross receipts of same quarter in 2019 or

-More than a “nominal” effect on the business (i.e., a restaurant).

However if a business is able to continue comparable conditions they would not be eligible for a credit. Items to consider would be portability of an employee’s work, business shut down for more than two weeks to begin teleworking or a need for an employee to be at an office (i.e., a manufacturing company).

Please keep in mind:

-Credits to do apply to wages paid to the business owner.

-Credits do not apply if you are able to continue in a comparable manner even if remotely.

-Credits do not apply to businesses that voluntarily reduce hours/operations.

-If you have more than one company you will be treated as one entity/a controlled group (for qualification purposes).

-You can now claim both the PPP loan & the Employee Retention Credit. However wages considered for PPP qualification cannot also be used to qualify for the Employee Retention Credit.

The credit is claimed on IRS Form 941 or if fling for a previously paid quarter IRS Form 941-X.

https://www.adp.com/spark/articles/2021/01/irs-guidance-on-how-to-claim-the-employee-retention-credit-for-2020.aspx

https://www.forbes.com/sites/alangassman/2021/03/04/march-1st-irs-notice-provides-essential-guidance-and-safe-harbors-for-the-employee-retention-credit/?sh=74c175224d9d

Dear Washington D.C.

January 24, 2021/in Blog /by John Dillard

Dear Washington D.C.

This is on my mind.
How about you?

I am making this post so it will show back up as a future memory on my timeline. This isn’t a political dispute. I am genuinely curious what the next 4 years will bring:

Today is 1 day until the Biden/Harris Inauguration. Gas is currently $2.09 per gallon. Interest rates are 2.25 percent for a 30-year mortgage. The stock market closed at 30,829.40 though we have been fighting COVID for 11 months. Our GDP growth for the 3rd Qtr was 33.1 percent. We had the best economy ever until COVID and it is recovering well. We have not had any new wars or conflicts in the last 4 years. North Korea has been under control and has not been testing any missiles. ISIS has not been heard from for over 3 years. The housing market is the strongest it has been in years. Homes have appreciated at an unbelievable rate and sell well. And let’s not forget that peace deals in the Middle East were signed by 4 countries—unprecedented!
Unemployment sits at 6.7% in spite of COVID.

Biden took over on 1-20-21. Let’s see how the next four years fare.

Praying for the best!!!!

Copied from a Friend.

It is Certainly That Time of Year Again. Corporate and personal returns are due March 15th and April 15th

January 4, 2021/in Blog /by John Dillard

It is Certainly That Time of Year Again. Corporate and personal returns are due March 15th and April 15th

Please be reminded corporate and personal returns are due March 15th and April 15th respectively. If you are unable to get your data prepared in time I will be sure to file an extension for you. Please be reminded an extension to file is not an extension to pay.

Our Tax Preparation Checklist is available 24/7 at the bottom of our home page.

Hope 2021 is off to a GREAT Start.

Blessings and be safe!

John Dillard CPA: A Christian CPA Firm Phone 770 814 9304

Highlights of Round 2 of the Paychex Protection Program

December 29, 2020/in Blog /by John Dillard

Highlights of Round 2 of the Paychex Protection Program

Hot off the Press….are Highlights of Round 2 of the Paychex Protection Program including:

-Expanded list of covered expenses including software that facilitate business operations and payroll processing fees.

-Ability to obtain a 2nd PPP Loan based upon the “necessity requirement” requiring borrowers to certify “current economic uncertainty makes this loan request necessary to support the ongoing operations…”.

-Eligibility for PPP Round 2 Funding are based upon business with a 25% revenue decline in any 2020 quarter compared to the same quarter in 2019.

-Covered expenses paid with PPP borrowings are now tax deductible and not taxable income.

-Ability to select either an 8 or 24 week reporting period for Round 2 PPP Loans.

-EIDL Advances will not reduce PPP loan forgiveness with guidance expected soon on how to amend your forgiveness application if your EIDL Advance has already been deducted from your Forgiveness Application.

To Learn More https://www.natlawreview.com/article/paycheck-protection-program-round-2-highlights