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It's TaxQuips time from TaxMama.com® - today TaxMama® wants to talk to you about the upcoming April 15th deadline – sort of…
[Note: You can listen to the audio podcast here]
Well, we are one week away from the traditional filing deadline of April 15th. Do we still care? After all, the IRS moved the filing deadline to May 17th – so can we totally ignore April 15th ?
Not really. Some things are still due on April 15th:
- 2021 first quarter estimated tax payments
- Your state tax return – if they haven’t complied with the IRS changed date
- Payroll tax (and sales tax) returns are still due on April 30th, in case you were wondering (sales taxes are state forms, not IRS).
- Various other things that the IRS gave us additional time to handle – which are….
Which things ARE extended by the IRS?
- Personal tax returns (Form 1040) and C corporation returns (Form 1120) and any other filings that were otherwise due on April 15th
- IRAs, HSAs, etc. (Note: If the state didn’t comply with the extended filing deadline, you MUST fund these accounts by April 15th)
- Individual retirement arrangements (IRAs)
- Health savings accounts
- Archer medical savings accounts
- Coverdell education savings accounts
- Extra time to pay the balance on 2020 tax returns without penalties.
- Filing your 2017 tax returns – and get your refund.
Even with the additional time until mid-May, here are three major issues that may convince you to just go ahead and put your tax return on extension anyway.
1) Ensure that your state complies with the IRS’ Paycheck Protection Plan rules – and consider testing out some alternate computations.
2) The IRS has just released new guidance on the $10,200 non-deductible part of the unemployment benefits and what to do if you have already filed your tax return and paid tax on this, now, non-taxable income. Some people won’t have to amend – the IRS will fix it automatically and issue a refund. Others, who have more complex issues (like our #3) may want to amend.
3) The American Rescue Act also waived your extra taxes if you got your health insurance through the Marketplace, but have to pay back the government-paid premiums when your income suddenly exceeded 400% of the poverty level (due to unemployment or IRA or retirement plan withdrawals)
- And there is a lot of discussion about filing married filing separately in order to reduce one (or both) spouse’s income below $150,000 to get this benefit. It will save some couples thousands of dollars – others will lose money. Test the numbers!
- We're still waiting for specific procedures on how to eliminate that extra tax.
- With this reduction in cost, what part of the health insurance expense is deductible as self-employed health insurance?
- What are the mechanics (procedure) to get the tax/penalty waived because the adjusted gross income is too high?
So, now do you understand why you just might want to go ahead and get an extension anyway – and give yourself and your tax professional time to test different computations to see which ones get you the lowest taxes, legally?
There’s more you need to know, and your tax pros and I are rapidly learning everything we can to get you the most tax credits and refunds, legally possible.
Meanwhile, I will be posting various updates and webinars that I am teaching, on this Events page - https://irsexams.school/events-and-webinars/
And remember, you can find answers to all kinds of questions about taxes and business issues, and EA Education, free. Where? Where else? At http://iTaxMama.com/AskQuestion
To make comments please drop into the TaxQuips Forum.
Everything You Wanted to Know About the 2021-2022 Enrolled Agent Exam.
(as a bribe, there is a discount code for those who attend!)
Sign up for the last session this year. (Please share this with your friends)
Reminder – Some Helpful IRS Links
IRS CoronaVirus updates
Which IRS services are open and available – keep an eye on this link
IRS Electronic Options
IRS Online Assistance Available
Dealing with audit or collections issues – IRS is keeping this page up to date
Of course, all the filing and paying deadlines - including taxpayers overseas whose June 15th filing deadline has been pushed back to July 15th.
And a great chart: How to Use the Tools on IRS.gov to Get Your Economic Impact Payment https://www.irs.gov/newsroom/how-to-use-the-tools-on-irsgov-to-get-your-economic-impact-payment
There are lots more things going on – watch the information in the IRS Newsroom - https://www.irs.gov/newsroom and TaxMama.com
Incidentally, I don't know if you know - TaxMama.com® is a free resource for people to get answers to tax questions BEFORE they make major, costly moves.
To make comments please drop into the TaxQuips Forum.
The Enrolled Agents Examination – PLEASE JOIN US
The new 2021-2022 exam will include all the CARES Act
laws, the PPPs, and the tax laws in the latest 5.593 page
Consolidated Appropriations Act!
The self-study courses are available for you
Incidentally, if you are presently unemployed, check with your unemployment office or business insurance coverage – they just might be able to pay your tuition.
This is a great time to improve (or develop) your skills as a tax professional.
Small Business Taxes Made Easy
Well, my friends, the book is out and healthy.
The Kindle and audio versions are available.
You can get the audio book wherever audiobooks are sold - http://iTaxMama.com/4thEdition_Audio
I would really appreciate it if you have the book and like it –
to please post a review at Amazon.com .
This is the best version of the book ever.
And for those people in business, or starting a business, or with clients who operate a business, we have completed the 12-week course based on the book, at CCH CPE Link.
It turned out really well and people found the information extremely helpful!
The course follows each chapter of the book – but also provides help to deal with your business issues during this COVID19 shutdown and quarantine. Who knows, it might help you save your business – or your finances!