Help wanted but high unemployment

It is no secret that COVID-19 has affected the world as we know it. When the pandemic started, the unemployment rate skyrocketed seemingly overnight due to forced closures in order to limit the spread of the virus. The unemployment rate is now 6% but if you walk into any restaurant or retail business a “We’re …

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Recognition of income in California complicated by COVID IRA distributions

The CARES Act allowed taxpayers to withdraw up to $100,000 penalty-free from an IRA in 2020 as a COVID-related distribution. In addition, taxpayers were given the option to make an election allowing recognition of income from the distribution over a three-year period beginning in 2020. Don’t miss: Staying on top of tax law changes these …

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COVID treatment and prevention expenses are deductible

As COVID continues to be a problem around the globe with no quick end in sight, tax related questions have arisen and IRS continues to release guidance on the deductibility of expenses related to COVID treatment and prevention. Don’t miss: Willful failure to file FBAR ruling packs expensive punch Most recently, as the availability of …

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COVID cyber threats to be aware of

The United States Department of Homeland Security, as well as other cybersecurity organizations, have formally released an alert warning about the new COVID cyber threats and strategies cyber hackers are using to gain access to confidential information. Don’t miss: School district procurement due diligence and written determinations Titles containing key words involved in the pandemic …

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Don’t forget the expanded child and dependent care credit

The Child and Dependent Care credit might not be getting as much attention as the monthly child tax credit payments that recently started hitting parent’s back accounts, but its’ expansion could greatly impact millions of Americans and their 2021 tax returns. The enhancement of the Child and Dependent Care credit, included as a provision of …

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Pandemic remote working tax relief is ending

As we begin to see an end in sight for the pandemic in the United States, some states have started eliminating their temporary pandemic remote working tax relief programs related to employees working remotely. This could lead to your business being subject to additional state taxes, which may require you to file state tax returns …

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Your 2020 tax return and the Recovery Rebate Credit

The 2020 Recovery Rebate Credit (RRC) was implemented during the 2020 tax year on form 1040 as part of the CARES Act which became law in March of that year. The first and second round of stimulus checks were advance payments of the 2020 Recovery Rebate Credit. The RRC ensures that everyone who should have received …

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What you should know about the 2021 child tax credit

The American Rescue Plan passed by Congress in March of 2021 included important changes to the child tax credit. Prior to its passage, the child tax credit was $2,000 per qualifying child with up to $1,400 available as a refundable credit. In 2021, the credit has been increased to $3,000 per qualifying child between the …

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Free eBook offers details on COVID economic resources

Looking for all finance related COVID-19 information? Since the onset of the pandemic, multiple aid packages, legislation, guidance, deadlines, caps and more have been issued, changed or suspended. It’s enough to make your head spin. Henry+Horne has stayed on top of the changes so you don’t have to and we’ve compiled it all into a …

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