IRS: Child Tax Credit Guidance

May 7, 2021By Smeriglio Associates LLCNews

A new IRS webpage provides guidance to taxpayers on advance child tax credit (CTC) payments in 2021. The credit was temporarily expanded and made refundable for 2021 by the American Rescue Plan Act. Eligible taxpayers are allowed a CTC for each qualifying child, defined as: 1) a child under age 18, 2) someone the taxpayer … Read More

IRS: Plus Up Payments

May 6, 2021By Smeriglio Associates LLCNews

A large number of people, including some who haven’t filed tax returns before, or haven’t filed recently, will be receiving Economic Impact Payments (EIPs) soon. The IRS announced it is disbursing nearly 2 million payments in the sixth batch of EIPs, which are available through the American Rescue Plan Act. Also receiving payments this time … Read More

IRS: 2020 Tax Filing

May 5, 2021By Smeriglio Associates LLCNews

Do you owe taxes but haven’t yet filed your 2020 return? There’s still time to file your return by the May 17, 2021 due date and avoid a late filing penalty. But what if you can’t pay what you owe? To limit penalties and interest, you should pay as much as you can by the … Read More

IRS: ARPA Adjusted for Inflation

May 4, 2021By Smeriglio Associates LLCNews

In a Revenue Procedure, the IRS has updated certain inflation-adjusted amounts in light of the American Rescue Plan Act (ARPA). The 2021 inflation amounts were announced in late 2020, however the ARPA changed some of these amounts. Among other changes, solely for tax years beginning in 2021, the ARPA increased the refundable portion of the … Read More

IRS: The 1% And Their Tax Bill

May 3, 2021By Smeriglio Associates LLCNews

A recent study found that the top 1% of taxpayers failed to report 20% of their income. The National Bureau of Economic Research found that these taxpayers failed to pay more than $175 billion in taxes owed. However, due to budget cuts, the IRS doesn’t have the resources to fully investigate this tax evasion. Audit … Read More

Presidential Outline for Tax

May 1, 2021By Smeriglio Associates LLCNews

President Biden outlined some of his tax proposals in his address to Congress on April 28. The White House also released a fact sheet on The American Families Plan, which contains tax breaks for low-and-middle-income taxpayers and tax increases on those making over $400,000 per year. The proposals include: extending the increased 2021 Child Tax … Read More

IRS: Fact vs Fiction

April 30, 2021By Smeriglio Associates LLCNews

Year after year, the tax myths keep coming, causing the IRS to combat misinformation. Many tax myths relate to refunds. The most common myth is that receiving a refund on your 2020 return means you don’t need to adjust your 2021 withholding. That’s not always true. Fortunately, the IRS.gov website provides an easy-to-use estimating tool. … Read More

Simple retirement savings options for your small business

April 29, 2021By Smeriglio Associates LLCNews

Are you thinking about setting up a retirement plan for yourself and your employees, but you’re worried about the financial commitment and administrative burdens involved in providing a traditional pension plan? Two options to consider are a “simplified employee pension” (SEP) or a “savings incentive match plan for employees” (SIMPLE). SEPs are intended as an … Read More