Changes to premium tax credit could increase penalty risk for some businesses
The premium tax credit (PTC) is a refundable credit that helps individuals and families pay for insurance obtained from a Health Insurance Marketplace (commonly known as an “Exchange”). A provision of the Affordable Care Act (ACA) created the credit. The American Rescue Plan Act (ARPA), signed into law in March 2021, made several significant enhancements […]
Work Opportunity Tax Credit extended through 2025
Are you a business owner thinking about hiring? There is good news in that a recent law extended a credit for hiring individuals from one or more targeted groups. Employers can qualify for a tax credit known as the Work Opportunity Tax Credit (WOTC) that’s worth as much as $2,400 for each eligible employee ($4,800, […]
Educators can deduct expenses related to Covid-19 prevention
Classrooms have never looked more different than they have this past year. The Covid era has pushed many classrooms online, and those that are still open to students are outfitted with extra hand sanitizer, masks, physical barriers and more. Eligible educators can now deduct unreimbursed expenses for Covid-19 protective items to help stop the spread […]
What’s in the Covid relief bill: Recovery rebates, extended unemployment and more
The Consolidated Appropriations Act of 2021 includes a number of provisions beneficial to individuals and business owners, particularly in light of ongoing economic turmoil in the wake of the coronavirus pandemic. In addition to the extension of the Paycheck Protection Program, the CAA contains another round of direct payments to individuals, extended unemployment insurance and […]
What’s in the Covid relief bill: Tax extenders
The Consolidated Appropriations Act of 2021 includes a number of provisions beneficial to individuals and business owners, particularly in light of ongoing economic turmoil in the wake of the coronavirus pandemic. In addition to the extension of the Paycheck Protection Program, direct payments and other tax provisions, the Taxpayer Certainty and Disaster Tax Relief Act […]
Looking to the future: Biden’s proposed tax plan
Between a more urgent need for Covid relief, economic stimulus and a narrowly divided Congress, Joe Biden’s proposed tax plan may not get much traction in the early days of his administration. It is important, however, to take a look at the president-elect’s priorities that may inform more targeted legislative actions. Below is a snapshot […]
Deadline extended for WOTC certification
Employers who hired individuals who qualify for Work Opportunity Tax Credits have a little more time to request certification. The WOTC is available to employers based on a percentage of wages paid to an individual certified as a member of a targeted group, such as a person who resides in a designated empowerment zone community […]
Electric Honda, Volvo models eligible for vehicle credit
Electric vehicles are becoming more popular, and the IRS has added several 2021 model year Honda and Volvo vehicles to the already growing list of vehicles eligible for the plug-in electric drive motor vehicle credit. A tax credit of $2,500, plus an additional amount based on battery capacity, up to $7,500 is offered for qualified […]
Year-end tax planning goes to the movies
Year-end tax planning is a bit more complex this year as many of our clients received loans through the Paycheck Protection Program. While the loan proceeds are not taxable, word is still out whether the business expenses paid for with the loan will be deductible. Therefore, we are preparing tax projections with two scenarios in […]
Georgia employers not charged for partial UI benefits related to COVID-19 partial claims
The Georgia Department of Labor announced this week that employers who file partial claims of unemployment insurance on behalf of employees as a result of COVID-19 will not be charged for those partial UI benefits if certain conditions are met. The GaDOL updated its guidance to state that employers will not be charged for partial […]