Category: Taxation-Individuals

To help clients make sure they don’t miss any important 2021 deadlines, Councilor, Buchanan & Mitchell has provided this summary of when various tax-related forms, payments and other actions are due. Please review the 201 tax calendar below and let us know if you have any questions about the deadlines or would like assistance in meeting them. Date Deadline for  February 1 Individuals: Filing a 2020 income tax return (Form 1040 or Form 1040-SR) and paying tax due, to avoid… Read more ›

President Trump signed into law billions of dollars in long-awaited COVID-19 and economic relief. The relief package is part of the nearly 5,600-page Consolidated Appropriations Act (CAA), which also contains numerous other tax, payroll and retirement provisions. Here are some of the provisions most likely to affect individual taxpayers. Recovery Rebates The most headline-grabbing component of the CAA is the second round of direct payments. The law calls for nontaxable “recovery rebates” of $600 per eligible taxpayer ($1,200 for married… Read more ›

After months of negotiations in Washington, an agreement has been struck on a new aid package to address the ongoing fallout from the COVID-19 pandemic. The legislation has been passed by both the U.S. House of Representatives and the U.S. Senate, and now goes to President Trump to sign the bill into law. As of this writing on December 22, the President has expressed concerns about some aspects of the relief bill. Included in the nearly 5,600-page Consolidated Appropriations Act… Read more ›

PDF: Unusual Year Steers Year-End Tax Strategies – 2020 Year-End Tax Planning for Individuals Please click the link above for a printable, PDF copy of the letter below.  As the end of 2020 approaches, we can all agree that this year is unlike any other. The coronavirus pandemic and natural disasters have had a significant impact on the tax situation for many taxpayers. In response to the health and economic impacts of the coronavirus pandemic, Congress passed two major pieces… Read more ›

The IRS has announced its 2021 cost-of-living adjustments to tax amounts that might affect you. Many increased to account for inflation, but some remained at 2020 levels. As you implement 2020 year-end tax planning strategies, be sure to take these 2021 adjustments into account in your planning. Also, keep in mind that, under the Tax Cuts and Jobs Act (TCJA), annual inflation adjustments are calculated using the chained consumer price index (also known as C-CPI-U). This increases tax bracket thresholds,… Read more ›

Now that Joe Biden has been projected as the winner of the presidential election by major news outlets,* you may wonder if your federal taxes will be affected. President-elect Biden campaigned on a broad agenda, including a pledge to roll back many of President Trump’s tax policies. In response to the Tax Cuts and Jobs Act (TCJA), Biden has promised a progressive approach to taxation, focused primarily on increasing the burden on businesses and high-income individuals. Of course, his odds… Read more ›

As consumers become more conscious of their environmental footprint and look for ways to save money, more and more electric vehicles can be seen on the roads today stretching from coast to coast. States are encouraging the purchasing of electric vehicles as well as exampled by California where the governor has taken action to ban the sale of non-electric vehicles after 2035. At this point, most taxpayers know or have heard of an electric vehicle tax credit program, but what… Read more ›

With the presidential election only weeks away, many people are beginning to pay closer attention to each candidate’s positions on such issues as the COVID-19 pandemic, health care, the environment and taxes. Among their many differences, President Donald Trump and former Vice President Joe Biden have widely divergent tax proposals. Their stances could have a major impact on the amount of taxes you’ll owe in the future. Here’s an overview of each candidate’s tax proposals for both individuals and businesses…. Read more ›

Beginning with Tax Year 2020, the IRS requires payments over $600 to nonemployees to be reported on the new Form 1099-NEC (Nonemployee Compensation). In prior years, these payments were reported on 1099-MISC. Why the new form? In prior years, the due date for Forms 1099-MISC depended on whether any nonemployee compensation was reported in Box 7. If so, the due date was January 31; otherwise the due date was February 28. The new form 1099-NEC was introduced to alleviate the… Read more ›

On August 28, the IRS issued guidance that provides some explanation of how employers can defer withholding and remitting an employee’s share of Social Security tax when wages are below a certain amount. The guidance in Notice 2020-65 was issued to implement President Trump’s executive action signed in early August. The guidance is brief, and private employers still have questions about whether, and how, to implement the deferral. The President’s action only defers Social Security taxes; it doesn’t forgive them,… Read more ›