From the Desk of Marianne Brown CPA
As we move into fall, I’d like to remind you of several important tax items for 2021. Please keep in mind that several tax relief items will become part of your 2021 tax returns, therefore, it is extremely important to keep an accurate record of the following items:
Third Round of Stimulus Payments
In March 2021, the IRS began issuing the third round of stimulus payments. The IRS issued Notice 1444-C to taxpayers that received the third stimulus payment. This notice must be kept with your tax return documents so that you can provide it to my office in early 2022.
Advance Child Tax Credit
On July 1, the new Advance Child Tax Credit program began. If you received the child tax credit on your most recent tax return, you probably received a letter from the IRS regarding this in June. Again, this information will become part of your 2021 tax return, so please be sure to keep track of any advance child tax credit payments you received.
Delayed Refunds from the IRS
There are still some unfortunate delays of 2020 tax refund from the IRS. While this situation is extremely frustrating, it is also very common this year. Unfortunately, the IRS is still working through a massive backlog caused by both last year’s pandemic closures plus this year’s mid-season tax law changes. This is causing a delay in issuing refunds.
Rest assured that you will receive your refund, however, there is no way to speed along the process.
Retirement Plans
Remember that the 2020 suspension of Required Minimum Distributions (RMDs) DOES NOT apply to 2021. If you have not done so already, you must take your RMD by December 31, 2021.
Business Relief
At this point in time, all First Round PPP Loans should have been forgiven. Business that received funds from the second round of the Payroll Protection Program should begin applying for forgiveness (if forgiveness has not already been requested).
If you experienced a significant decrease in your business income, your business may qualify for the Employee Retention Credit (ERC), which would make you eligible to receive a refund on your quarterly payroll tax returns. I have evaluated the businesses that may qualify and I have reached out accordingly.
Impending Tax Law Changes
Lawmakers continue to struggle to agree upon a plan for the infrastructure bill that has been in process for most of this year. I am following updates closely as many estate and tax planning strategies rely heavily upon the final outcome.
As Always – Stay Vigilant!
If someone contacts you and requests sensitive personal information, please DO NOT provide them with anything! If you are unsure of the validity of the request, please reach out to me for help.
Please reach out to me directly at 732-556-4215 or marianne@oujowealth.com if you have any questions or if you’d like to discuss anything further.
Stay Safe!
Marianne Brown, CPA
