Understanding The Research & Development Tax Credit – What Small Businesses Need To Know

Three women and two men in a business meeting.

It’s tax season, let the sales pitches begin! Tax return preparation companies and do-it-yourself software providers are hard at work convincing individual taxpayers that their services and products are the way to maximize a tax refund or pay the lowest amount of tax. And, judging by what I’m seeing on social media, companies that specialize in the Credit for Increasing Research Activities (also known as the R&D tax credit) are also selling hard, looking for businesses who may qualify for this credit—especially startups.

They are casting an extremely wide net. While it’s true that the R&D credit is often overlooked by small businesses and their return preparers, it’s not as easy to qualify for the credit as some of these companies want small business owners to believe. Buyer beware.

For sole proprietorships, partnerships, and S-corporations the R&D credit is claimed by filing Form 6765 with the business return (Schedule C of a Form 1040, Form 1065, or Form 1120-S, respectively). Qualifying small businesses can elect an up to $250,000 payroll tax credit instead of an income tax credit.

I’m not going to get into the mechanics of taking the credits here but it is easy to see how this election could benefit a startup in the early stages with payroll expenses and the associated taxes but not much income to be taxed. Nevertheless, the mere fact that a business is new or has a new product does not automatically make expenses qualified research expenses for the purposes of this credit.

Section 174 of the Internal Revenue Code allows a taxpayer to treat “research or experimental expenditures” as expenses instead of having to amortize them over 60 months. The R&D credit uses the same definition of research or experimental expenditures as IRC Section 174. Qualified research expenses are defined in Treasury Regulation 1.174-2. The expenditures must be “incurred in connection with the taxpayer’s trade or business” and must “represent research and development costs in the experimental or the laboratory sense.”

The regulation goes on to state that “expenditures represent research and development costs in the experimental or laboratory sense if they are for activities intended to discover information that would eliminate uncertainty concerning the development or improvement of a product.” Additionally, qualification depends on the “nature of the activity to which the expenditures relate, not the nature of the product or improvement being developed.” It is on these semantic rocks that many tax credit ships have foundered.

In Connection With The Taxpayer’s Trade or Business

For an expenditure to be incurred in connection with a trade or business, the business must be a functioning business. Deductions exist for startup expenses for businesses but those should not be confused with the R&D credit.

Research activities conducted before a business is a business may be legitimate (and deductible) startup expenses but they do not qualify for the R&D credit. In other words, you must start your startup and then do the research, not develop the product and build the business around it in order for research expenditures to be considered qualifying expenses for the R&D credit.

The Experimental Or The Laboratory Sense

To qualify, research and development expenditures must be paid to eliminate uncertainty concerning the development or improvement of a product. This concept is perhaps best described as traditional trial and error using the scientific method. The idea of evaluating alternatives is important as is systematic testing of various alternatives. Testing and debugging an existing product is not enough to qualify for the credit. Neither is evaluating a set of alternatives or features for a given product.

For example, research to determine which set of code objects are necessary to implement a given software solution would not qualify. Quality control and assurance testing is also specifically excluded. A taxpayer must be evaluating alternatives to create a new product or improve an existing product. Additionally, the improvement must be related to the product’s performance and not simply a matter of cosmetics, taste, or fashion. Perhaps the best example of qualifying expenses would be those incurred to develop and test prototypes of a new product.

What about software and app development? What indeed. Determining whether software development costs are qualified research expenditures requires special analysis. Expenses incurred to develop software for internal use are specifically excluded from qualification. In Accounting Standard Codification (ASC) 730, the IRS Large Business & International unit indicated that internal use software includes software “used to provide a service or produce a product that the customer neither acquires nor gains any right to future use of.”

That is, the expenses incurred to develop a customized user experience for your website’s shopping cart will not qualify where expenses incurred to develop and test a new game for a gaming company to sell, most likely would—at least up to the point that “technological feasibility is established” (again, according to ASC 730).

The Nature Of The Activities Not The Nature Of The Product

For expenditures to qualify substantially all (substantially all has been defined as 80%) of the research activities must relate to a process of experimentation for a new or improved product. Corn Island Shipyard, Inc. recently found this out the hard way when the U.S. Tax Court ruled that the 80% requirement was not satisfied “simply because at least 80% of the product’s elements differ from those of the products the taxpayer previously developed.”

The ruling in Little Sandy Coal Company, Inc., v. Commissioner of Internal Revenue (T.C. Memo 2021-15) held that the “substantially all” test applied to activities, not to physical components of the product being developed or improved. In other words, even though the company’s two products (a ship and a dry dock) were 80% different from the company’s other products, because the research activities involved in developing the two new products did not comprise 80% of the research and development activities the expenses did not qualify for the credit.

Developing the two new products only required a small amount of actual experimentation to create a substantially different product. And, for the purposes of this credit, it’s the activities that count, not the product.

The R&D credit can be an excellent benefit for small companies, especially those who are developing new products or product lines. Nevertheless, the rules for claiming the credit are complex and nuanced. Correctly claiming the credit may be beyond the skills of many tax professionals who serve small companies. If you think your company may qualify for the credit it can be a good idea to work with a company that specializes in qualifying companies and determining qualifying expenses.

Those companies should be willing to work with your tax professional (and vice versa). Startup owners should, however, proceed with caution when it comes to firms with big marketing budgets and great sales pitches that promise to qualify them for this credit without knowing anything about the company or its products. There be (tax) dragons.

Follow me on Twitter.
https://i0.wp.com/onlinemarketingscoops.com/wp-content/uploads/2021/02/3jM-I6UL_400x400.jpg?resize=102%2C102&ssl=1

I own Tax Therapy, LLC, in Albuquerque, New Mexico. I am an Enrolled Agent and non-attorney practitioner admitted to the bar of the U.S. Tax Court. I work as a tax general practitioner preparing returns for individuals and (really) small businesses as well as representing individuals before the IRS and, occasionally, the U.S. Tax Court. My passion is translating “taxspeak” into English for taxpayers and tax practitioners. I write to dispel myths with facts and to explain “the fine print” behind seemingly simple tax concepts. I cover individual tax issues and IRS developments with a focus on items of interest to taxpayers and retail tax practitioners. Follow me on Twitter @taxtherapist505

Source: Understanding The Research & Development Tax Credit – What Small Businesses Need To Know

.

.

More Contents:

How benefits like CERB affect your taxes | Sun Life
[…] Here are a few that you get to keep tax-free: Disability Tax Credit (DTC), Goods and Services Tax Credit (GSTC), Canada Child Benefit (CCB), and Guaranteed Income Supplement (GIS) payments […]
1
Covid-19 Live Updates: U.S. Awaits F.D.A.’s Green Light for Johnson & Johnson’s Single-Shot Vaccine – The New York Times
[…] payments to $400 a week from $300 and extending them through the end of August Increase the child tax credit Provide more than $50 billion for vaccine distribution, testing and tracing Allocate nearly $20 […]
N/A
Bennet Applauds House Passage of Biden American Rescue Plan | Press Releases | U.S. Senator
[…] That’s why I fought for the American Rescue Plan to include my proposals to expand the Child Tax Credit and Earned Income Tax Credit, which will cut child poverty in half and provide economic security to millions of families […] ”   Along with expanding the Child Tax Credit (CTC) and Earned Income Tax Credit (EITC), Bennet fought tirelessly to secure other Colorado priorities in Biden’s plan […]
4
Live: Coronavirus daily news updates, February 27: What to know today about COVID-19 in the Seattle area, Washington state and the world
[…] It would increase the child tax credit; provide more than $50 billion for vaccine distribution, testing and tracing; and allocate nearl […]
N/A
Important reminders before filing 2020 tax returns | Internal Revenue Service
[…] Earned Income Tax Credit The Earned Income Tax Credit (EITC) can give qualifying workers with low-to-moderate income a substantial financial boost […] Taxpayers also have the option of using their 2019 income to figure the Additional Child Tax Credit for 2020 […]
36
House works late, OKs stimulus bill
[…] said as part of the plan, very small businesses “with middle-class owners” would receive an income tax credit to cover 25% of their employees’ wages, up to $10,000 per year per employer, in an effort t […]
N/A
Republicans said $2.3 trillion for wealthy’s OK but $1.9 trillion for you It’s too much. READ THIS!
[…] An expansion of the child tax credit to give families up to $3,600 per child over a year $20 billion for Covid-19 vaccine distributio […]
N/A
Opinion | My 6 Months as a Solo Parent – The New York Times
[…] President Biden has offered a proposal to expand the child tax credit […]
2
Republicans said $2.3 T for wealthy & corps OK but $1.9 T not OK for you
egbertowillies.com – Today
[…] An expansion of the child tax credit to give families up to $3,600 per child over a year $20 billion for Covid-19 vaccine distributio […]
2
Services
[…] We have participated in Section 501(c)(3) bond offerings, housing tax credit projects, and public-private partnership transactions […] Go To Top Housing Tax Credit Services MUCR provides a comprehensive range of services to the affordable housing industry […] Our success in tax credit projects is based on our ability to work with your development team which includes attorneys […]
N/A
House Approves Biden’s $1.9T Pandemic Relief Package – Law360
[…] The bill would also increase the child tax credit to $3,000 in certain cases, or $3,600 for children under age 6; expand eligibility for the earne […] in certain cases, or $3,600 for children under age 6; expand eligibility for the earned income tax credit; and extend credits to reimburse employers for workers’ paid sick leave, among other tax changes […] over time on big corporations’ payrolls if they fail to meet a certain wage standard, paired with a tax credit equal to 25% of wages to small businesses that pay workers higher wages, capped at $10,000 per year […]
0
Stimulus Package Could Mean $14,000 Windfall for Family of Four
[…] Added to this would be extra money under the revamped Child Tax Credit […]
2
Rep. Veasey (TX-33) Votes to Pass the Biden American Rescue Plan to Deliver Urgent Relief to the American People
veasey.house.gov – Today
[…] American workers can pay their bills and supporting 27 million children with an expanded Child Tax Credit and 15 million low-wage workers through the Earned Income Tax Credit […]
2
House Passes $1.9 Trillion Pork-Filled COVID ‘Relief’ Package. Here’s What It Includes. by Beth Baumann
townhall.com – Today
[…] Keep Democrats from Packing the Supreme Court Bronson Stocking In addition, the bill ups the child tax credit to $3,600 for children six and under […]
169
House Passes Blue Pork ‘COVID-19 Relief’ Bill – PJ Media
pjmedia.com – Today
[…] The bill increases the child tax credit from $2,000 to $3,000 (a cost of $99 billion) and expands the Earned Income Tax Credit to some childless adults ($25 billion) […]
3
Larson Votes for Critical COVID Relief
larson.house.gov – Today
[…]   Cuts child poverty in half by Increasing the Child Tax Credit to $3,000 per child age 6 and over/$3,600 for children under age 6 […]   Expands the Earned Income Tax Credit for workers, including working seniors for the first time […]   Expands the Child and Dependent Care Tax Credit and makes it fully refundable to help families afford child care […]
1
Electric bikes could get much cheaper under a new proposal from two House Democrats
[…] – introduced the Electric Bicycle Incentive Kickstart for the Environment (E-BIKE) Act, a tax-credit program that aims to spur e-bike sales […] It resembles a federal tax credit program that gives buyers of certain low- and zero-emission cars a rebate worth up to $7,500 […]
N/A
Meng Helps Pass Nearly $2 Trillion American Rescue Plan Act
meng.house.gov – Today
[…] from the last relief bill – bringing the total relief payment to $2,000 per person; Make the child tax credit fully refundable for 2021 and increases the annual amount from the current $2,000 per child t […]
1
Financial Impact of a Caregiving Experience Survey
[…] $3,000 tax credit to working family caregivers for qualified expenses Annual stipend of $1,200 Career coaching t […]
0
2021 Economic Aid Act Impact on Small Businesses
[…] for your business to accommodate these new legislative opportunities About the Employee Retention Tax Credit for businesses, now available to PPP borrowers Documentation best practices to mitigate issues fo […]
0
Finance Law for 2021 – discover the highlights
[…] starting January 1, 2022 Expenses outsourced to State bodies will not be doubled anymore in the tax credit computation They will be limited to 3 times the amount of other expenses included in the tax credit computation The total annual limit for external expenses has been reduced to 10 M€ Tax credit related to energy renovation of professional buildings New tax credit for expenses improving th […]
N/A
Slotkin Votes to Advance COVID Relief Bill
slotkin.house.gov – Today
[…]   Expands the Child Tax Credit and the Earned Income Tax Credit and increases the amount families are eligible to receive for both, putting money in the pockets of […]
2
Golden Statement on Vote Against $1.9 Trillion Legislative Package | by Congressman Jared Golden | Feb, 2021
repgolden.medium.com – Today
[…] $250 billion in these kinds of provisions, including a one-year expansion of the Child Tax Credit, a two-year enhancement of premium subsidies under the Affordable Care Act, and multiemploye […]
1
Colorado hangs hopes on electric vehicle mass shift to combat climate warming
[…] Two parents dropped in with their twin 17-year-old daughters, learned that a state tax credit was about to shrink from $4,000 to $2,500, and snapped up a pair of Leafs, saying the colors didn’t […]
5
Biden Administration Passes $1.9 Trillion Stimulus Package
coingape.com – Today
[…] of programs making millions of more people eligible for jobless benefits An expansion of the child tax credit to give families up to $3,600 per child over a year $20 billion for Covid-19 vaccine distributio […]
4
Support A Capital Gains Tax and Working Family Tax Credit!
fusewashington.actionkit.com – Today
Tell your legislators they must start to balance Washington’s tax code by passing a capital gains tax and funding the Working Families Tax Credit!
8
PI’s Media Digest: 10 US cities that will spend more on police than public health in 2021; how community health providers can support equitable vaccine rollout | Prevention Institute
preventioninstitute.org – Today
[…] hike, $1400 stimulus checks, supplemental unemployment benefits, and increase in the Child Tax Credit, and aid to states for testing and vaccination campaigns […]
0
Reducing Unintended Consequences: Integrated EPC for Solar and Storage
blog.burnsmcd.com – Today
[…]   Driven by tax credit programs, renewable mandates and other market-specific incentives, interest in solar is high […]
N/A
House passes Biden’s US$1.9 trillion COVID relief package | CTV News
[…] $1,400 direct checks to Americans making less than $75,000 annually, an increase in the child tax credit, direct funding to state and local governments, funding for schools and more money for vaccin […]
N/A
Biden’s Covid-19 relief bill including stimulus checks passes the House
[…] Affordable Care Act subsidies for low- and middle-income Americans and expands both the child tax credit and the earned income tax credit […] Some provisions, such as higher ACA subsidies, the expanded child tax credit, and the expanded earned income tax credit, are only temporary, and it’s unclear whether they’ll last beyond the next year or two […]
2
Tax credit proposal is really a plan for private school vouchers in Kentucky
[…] (House Bill 205 in 2019), which, had it been successful, would have allowed a significant income tax credit to donors in exchange for students’ private school tuition assistance […] Opportunity Account Program (EOA Program), which will be funded by an individual or corporate tax credit […] The tax credit rate of 95%, combined with a maximum tax credit amount of $1 million, may also alter the dynamic of who controls education funding […]
1
Text – H.R.1319 – 117th Congress (2021-2022): American Rescue Plan Act of 2021 | Congress.gov | Library of Congress
[…] PART 2—CHILD TAX CREDIT Sec. 9611. Child tax credit improvements for 2021. Sec. 9612. Application of child tax credit in possessions. Sec. 9621. Strengthening the earned income tax credit for individuals with no qualifying children […] Temporary special rule for determining earned income for purposes of earned income tax credit. Sec. 9631. Refundability and enhancement of child and dependent care tax credit […]
21
New webpages and webinar posted to help small employers choose and maintain a retirement plan
content.govdelivery.com – Today
[…] Small employers may receive a tax credit for new plans of up to $5,000/year for three years for the cost of setting up a new plan […]
3
Biden’s $1.9 trillion COVID relief bill passes House, but faces Senate hurdle – CBS News
[…] My plan would provide an income tax credit equal to 25 percent of wages, up to $10,000 per year per employer, to small businesses that pa […]
5
House Passes $1.9 Trillion COVID-19 Relief Bill
[…] funding for schools, additional money for vaccine distribution, and an increase to the child tax credit The measure now heads to the Senate, where members are currently debating how to proceed followin […] funding for schools, additional money for vaccine distribution, and an increase to the child tax credit […]
5
Budget 2021: What we know, what to look out for and how it affects you
[…] Peston, the Treasury is reluctant to make the top up permanent because, with the knock-on impact on tax credit, it costs around £6 billion a year […]
43
Stimulus Package Passed by House a ‘Missed Opportunity’ Says Mitch McConnell
[…] for state and local governments, $130 billion to help K-12 schools reopen and expanding the child tax credit to $3,000 per child or $3,600 for children under six […]
7
Research and development Edinburgh : Geoghegans
[…] range of tax incentives including an increased deduction for R&D revenue spending and a payable R&D tax credit for companies not in profit […] than €86m The incentives include: increased deduction for R&D revenue spending and a payable R&D tax credit for companies not in profit […]
1
Americans can’t file their income taxes fast enough — but they should brace for some unwelcome news in their 2020 refunds
[…] The refunds as of now don’t factor in refunds that include payments for the Earned Income Tax Credit, a powerful anti-poverty tax credit geared toward low- and moderate-income families […] Refunds incorporating the EITC and the Additional Child Tax Credit will start hitting bank accounts during the first week of March, according to the IRS […]
0
About Us – UPI Loan Fund
upiloanfund.us – Today
[…] He has created profit/non-profit partnerships for Low Income Housing Tax Credit projects along with asset and property management activities including the refinancing an […]
0
Last Few Days to Apply for Small Business Hiring Tax Credit
Sacramento – There’s still time for small business owners to receive financial help by applying for the Main Street Small Business Hiring Tax Credit (https://www.cdtfa.ca.gov/taxes-and-fees/SB1447-tax-credit.htm).
N/A
Global Medical Tubing Market – Foster Market Research
[…] has kept its R&D tax credit low […]
N/A
There are new rules this tax season, courtesy of COVID-19. Here’s what you need to know
maroc.us – Today
[…] Multiply that by $2 a day and he’s set to get a tax credit of $376 […] ” Digital tax credit Golombek also points out one of the new wrinkles this tax season, which is that the government i […]
1
Senate Democrats move immediately to “Plan B” on minimum wage – CBS News
[…] who earn less than $15 per hour would qualify for a “Blue Collar Bonus” in the form of an automatic tax credit […]
N/A
MyAnimeList.net
myanimelist.net – Today
[…] It would also increase the value of the so-called child tax credit and provide more than $50 billion for vaccine distribution, testing and tracing, nearly $20 […]
0
HOT JOBS & COOL JOBS: EXERCISE SPECIALIST REDMOND WA USA
[…] Apply Now>> 27 Compliance Auditor – Tax Credit Specialist! Seattle, WA, USA Motivation – you are internally driven and can exercise sound judgment […]
0
Accelerating Digital Transformation | by Ali Jan | Feb, 2021
medium.com – Today
[…] do to accelerate digital transformation: Invest In The Digital Future The government must give tax credit and investment funds to startups to continue innovating in an increasingly competitive digita […]

IRS Delivers Covid-19 Surprise To Workers:  A Chance To Redo Their 2021 Health Plan And FSA Choices

If your employer lets you make changes to your workplace healthcare elections for 2021 under new Treasury guidance, it could cut your tax bill.

 

Wish you could change your health plan for 2021? In newly released guidance on new flexible rules for healthcare and dependent care FSAs, the Internal Revenue Service has included a new Covid-19-relief surprise: Employers can allow employees to make changes prospectively to health care coverage for 2021.

“The guidance is very employer and employee friendly; it really gives a lot of flexibility,” says Jake Mattinson, an employee benefits lawyer with McDermott Will & Emery in Chicago.

Notice 2021-15 allows for mid-year changes to employer-sponsored health care coverage, healthcare flexible spending accounts and dependent care accounts. It will help employees whose medical and caregiving situations have changed because of the coronavirus pandemic. That is, if your employer is on board.

Usually healthcare elections are set in stone on a calendar year basis. Last May, the Treasury Department came up with a partial mid-year fix for 2020, allowing prospective changes and extending grace periods and carryovers through year-end (IRS Notice 2020-29). But employees still cried foul: they had socked away more money than they could spend in these workplace tax-favored accounts, and would be subject to forfeiture rules.

In December, in the tax provisions tied onto the year-end spending package, Congress passed new special rules allowing rollovers and more for leftover 2020 and 2021 FSA money for employees and ex-employees. Notice 2021-15 answers a lot of the open questions about how to implement the new rules.

For 2021, you can revoke an existing healthcare plan election and make a new election, or revoke an existing election and attest that you’re getting coverage elsewhere. Say you picked an HMO plan, but really want to be in a PPO plan. Or say you decide you’d be better off under a spouse’s plan. This gives you the chance to make a mid-year change. That allowance is not in the December law, so it was a surprise, Mattinson says.

For healthcare and dependent care FSAs, the guidance says employers can allow employees to carryover unused amounts they’ve stashed in these accounts from the 2020 and 2021 plan years. It wasn’t clear before, but the IRS says that any plan can implement a 100% carryover or extended grace period, no matter what feature the plan had before, Mattinson says. That means employees might be able to carry over their whole balance (instead of just $550 under current law) from one year to the next.

The extended grace period could go out 12 months, instead of just 2.5 months. as of January 1, 2022, everything would shift back to the regular rules. Under the regular rules, you can stash up to $5,000 pretax per year in a dependent care FSA, but if you don’t use the money for the specified year, you lose it. You can put up to $2,750 in a healthcare FSA, and if you don’t use it, you may be able to either use it up during a grace period or carry over $550.

Don’t get your hopes up just yet: Employers have to adopt these changes, and while some have already been working on amendments to their plans based on the December law even before today’s guidance, others have decided to do nothing. “The reaction among employers is mixed; everyone has their own ideas of what to implement. It’s all optional,” says Mattinson. One client said they would implement it all, while another client said they wouldn’t make any of the changes, for example.

Some of the nitty-gritty guidance surrounds COBRA and health savings accounts. For COBRA, the guidance makes clear that if an employer lets terminated workers seek reimbursement from an FSA, that won’t hurt their qualification for COBRA. For health savings accounts, the guidance clarifies that for employees who want to make a midyear change into a high deductible health plan with an HSA, they could convert a general purpose FSA to a limited purpose FSA so as not to be disqualified from contributing to the HSA.

Notice 2021-15 is 34 pages long and includes detailed examples, suggesting this is an area of the tax code that could be simplified! Here’s a bullet point summary of the law changes addressed in the IRS guidance; employers can:

 

  • allow employees to carry over unused money up to the full annual amount from the plan year 2020 to 2021, and also from the plan year 2021 to 2022 for healthcare and dependent care FSAs
  • allow up to a 12-month grace period for employees to incur new expenses and submit claims against unused accumulated funds for plan years ending in 2020 or 2021 for healthcare and dependent care FSAs
  • allow midyear election changes on a prospective basis without a change in status event for plan years ending in 2021 for healthcare and dependent care FSAs
  • allow dependent care reimbursement up to age 14 in cases where an employee’s dependent turned 13 in 2020 and the employee had leftover funds from 2020 (this special carry forward rule helps employees whose dependents “aged out” during the pandemic) for dependent care FSAs
  • allow health FSA participants who stop participating in the plan (ex-employees) during calendar year 2020 or 2021 to continue to receive reimbursements through the end of the year, including grace periods (this post-termination benefit applies to healthcare FSAs, not dependent care FSAs)

 

Further reading: Healthcare And Childcare FSA Fix For 2021, Finally: Special Carry Over Rules And More

Follow me on Twitter or LinkedIn.

I cover personal finance, with a focus on retirement planning, trusts and estates strategies, and taxwise charitable giving. I’ve written for Forbes since 1997. Follow me on Twitter: @ashleaebeling and contact me by email: ashleaebeling — at — gmail — dot — com

Source: IRS Delivers Covid-19 Surprise To Workers:  A Chance To Redo Their 2021 Health Plan And FSA Choices

.

.

More Contents:

Learn what documents you will need to get a Social Security Card | SSA
[…] you can apply for an Individual Taxpayer Identification Number from the Internal Revenue Service (IRS). Visit IRS in person or call the IRS toll-free number, 1-800-TAXFORM (1-800-829-3676), and request Form W-7 (Application for IRS Individual Taxpayer Identification Number) […] you can apply for an Individual Taxpayer Identification Number from the Internal Revenue Service (IRS). Visit IRS in person or call the IRS toll-free number, 1-800-TAXFORM (1-800-829-3676), and request Form W-7 (Application for IRS Individual Taxpayer Identification Number) […]
513
6 Things I Wish I Knew Sooner About Payroll
[…] of the work The nature and degree of control you have over the worker The Internal Revenue Service (IRS) also provides guidelines to help you figure out if your worker is an employee or independen […] The IRS breaks down the degree of control and level of independence into three categories, includin […] Plus, the IRS requires businesses to maintain employment tax records for at least four years […]
1
Anyone funding their poker account with cashapp and Bitcoin and also cashing out with them? Causing tax problems : poker
[…] your transaction data to calculate your cost basis for the purpose of reporting gains/losses to the IRS […] $300 (and really, over like $60 since it’s just the marginal income tax that you’re shorting the IRS by not reporting it) […] I think the fact that you got a 1099-B from CashApp (that they presumably also sent to the IRS) means that if you don’t report anything for crypto, you’re just bringing marginally more attention […]
0
THE WhistleBlowers   | CALIFORNIA (USA): VENTURE CAPITALIST (Imaad Zuberi) PLEADED GUILTY to tax evasion for filing false foreign agent registration records + providing illegal campaign contributions to various presidential election campaigns, SENTENCED to 12 years in FED prison
thewhistleblowers.is – Today
[…] partners and pocketed most of the funds for himself,” said Special Agent in Charge Ryan Korner of IRS-Criminal Investigation Los Angeles Field Office […] At the end of the day, IRS Criminal Investigation worked closely with our partner federal agencies to ensure Zuberi’s criminal […] This matter was investigated by the FBI and IRS-Criminal Investigation […]
0
Export.gov
emenuapps.ita.doc.gov – Today
[…] Our IRS Tax ID number for the U […]
0
Dr. Paulvalery Roulette, MD – Orthopedic Hand Surgery Specialist In Matthews NC – AMe Pro
proame.net – Today
[…] that handle your information securely as well such because the DMV, VA, SSA, and most lately the IRS in sending out stimulus checks […]
0
DRL Support to Workers’ Freedom of Association in Vietnam
[…] gov you will need an Employer Identification Number (EIN) from the Internal Revenue Service (IRS) and a Commercial and Government Entity (CAGE) code […] United States and do not pay employees within the United States, you do not need an EIN from the IRS […]
7
PSA: For those of you in the US who develop paid apps on the side, be careful how you file your taxes : androiddev
I just had my return rejected by the IRS after filing with turbotax […] it and just needed me to resubmit, but they refills with the schedule H again (which strangely, the irs accepted this time so now I have to file an amendment) […]
N/A
Enforcing Current Tax Law Makes Financial Sense –
itep.org – Today
[…] tax audits of big corporations and high-income individuals and by providing more resources to the IRS. The Tax Gap The IRS estimated that the tax gap – the difference between federal taxes owed and federal taxes paid […] When measured as a share of GDP or tax collections, the IRS has been cut 35 percent over the past decade. To undo those funding cuts, they suggest the IRS budget would need to be increased by more than $100 billion over the next decade (which Rep […]
6
HOT JOBS & COOL JOBS: PROJECT MANAGER ARLINGTON VA USA
[…] Apply Now>> 40 Project Manager with IRS experiance Lanham, MD, USA Project Manager Lanham Maryland Responsibilities The Project Manager i […]
0
As GOP splits, Collins’ courage should earn her more credit
bangordailynews.com – Today
[…] ” Nixon tried, but failed, to get the IRS to audit my taxes and find something wrong […]
N/A
HOT JOBS & COOL JOBS: EXPERIENCED TAX PREPARER FORT WAYNE IN USA
[…]  Collaborate with staff on income tax preparation and planning * Represent clients with IRS, State  […]
N/A
Comparative analysis of drug response and gene profiling of HER2-targeted tyrosine kinase inhibitors
[…] CDK 12 drives breast tumor initiation and trastuzumab resistance via WNT and IRS 1‐ErbB‐ PI 3K signaling […]
N/A
Grant Process 2021
[…] Also a copy of the most recent 990 filed with the IRS […]
N/A
Only those who don’t consider themselves Sri Lankan refuse to take jab – Army Commander – The Island
island.lk – Today
[…] partners and pocketed most of the funds for himself,” said Special Agent in Charge Ryan Korner of IRS-Criminal Investigation Los Angeles Field Office […]
0
Webinar Fiduciary File: The Importance of Maintaining Proper Documentation
[…] The Internal Revenue Service (IRS), as well as the Employee Retirement Income Security Act (ERISA), require plan sponsor […]
N/A
Money-in-Politics Timeline •
[…] independent expenditures by the FEC and political activity of tax-exempt organizations by the IRS meant that transparency would not be guaranteed […]
363
Books for All and All for Books – Indian Masterminds – Bureaucracy, Bureaucrats, Policy, IAS, IPS, IRS, IFS, Civil Services, UPSC, Government, PSUs complete information, NEWS, Transfers, Features, and Opinion.
indianmasterminds.com – Today
IAS officer Rahul Kumar, who cracked UPSC even without having formal college education, is on another mission now. He is aiming to start libraries in all the `panchayats’ of Bihar’s Purnea district.
2
Electronic Code of Federal Regulations (eCFR)
[…] plus “cost of goods sold” as these terms are defined and reported on Internal Revenue Service (IRS) tax return forms (such as Form 1120 for corporations; Form 1120S for S corporations; Form 1120 […] (1) The Federal income tax return and any amendments filed with the IRS on or before the date of self-certification must be used to determine the size status of a concern […] SBA will not use tax returns or amendments filed with the IRS after the initiation of a size determination […]
N/A
Third stimulus check: Will you get a $1,400 check? – CBS News
[…]   For instance, the IRS said it sent 30 million payments to households earning more than $75,000 during the first round o […] After that, the IRS would direct stimulus checks to eligible households […]   However, people who don’t have banking accounts or payment information on file with the IRS would likely have to wait longer for paper checks or prepaid debit cards to arrive in the mail […]
N/A
This Just In: IRS Extends Relief for Opportunity Zone Investors | Aprio
sot.ag – Today
If you’re invested in the Qualified Opportunity Zone program, then we have some good news for you: the IRS is giving you more relief this year. Find out how you can take advantage of it.
0
This Just In: IRS Extends Relief for Opportunity Zone Investors | Aprio
sot.ag – Today
If you’re invested in the Qualified Opportunity Zone program, then we have some good news for you: the IRS is giving you more relief this year. Find out how you can take advantage of it.
0
This Just In: IRS Extends Relief for Opportunity Zone Investors | Aprio
sot.ag – Today
If you’re invested in the Qualified Opportunity Zone program, then we have some good news for you: the IRS is giving you more relief this year. Find out how you can take advantage of it.
0
This Just In: IRS Extends Relief for Opportunity Zone Investors | Aprio
sot.ag – Today
If you’re invested in the Qualified Opportunity Zone program, then we have some good news for you: the IRS is giving you more relief this year. Find out how you can take advantage of it.
0
This Just In: IRS Extends Relief for Opportunity Zone Investors | Aprio
sot.ag – Today
If you’re invested in the Qualified Opportunity Zone program, then we have some good news for you: the IRS is giving you more relief this year. Find out how you can take advantage of it.
0
This Just In: IRS Extends Relief for Opportunity Zone Investors | Aprio
sot.ag – Today
If you’re invested in the Qualified Opportunity Zone program, then we have some good news for you: the IRS is giving you more relief this year. Find out how you can take advantage of it.
0
I’ll Tell You How To Start Your Own Medical Billing Business! : TheJadedBiller
[…] Fiscal year-end: December 31 ☐ Apply for IRS Employer Identification Number (EIN), if applicable […] To obtain Form SS-4 to apply for an EIN, go to IRS ( […]
0
What If You Get Audited? | Financial Planning Consultants
[…] In 2017, the IRS audited 0.5% of all individual tax returns.¹ And being audited does not necessarily imply that the IRS suspects wrongdoing. The IRS says an audit is just a formal review of a tax return to ensure information is being reporte […] The IRS selects returns for audit using three main methods […]
N/A
HOT JOBS & COOL JOBS: VP TAX WORK IN LINCOLN NE LAS VEGAS NV USA
[…]  Provide support to clients in the case of an IRS audit * Perform other clerical duties as necessary  […]
N/A
TurboTax® #1 Best-Selling Tax Software, Taxes Done Right
turbotax.intuit.com – Today
[…] Unemployment Income reported on a 1099-G 100% Accurate Calculations Guarantee: If you pay an IRS or state penalty or interest because of a TurboTax calculation error, we’ll pay you the penalty and […] 100% Accurate Expert Approved Guarantee: If you pay an IRS or state penalty (or interest) because of an error that a tax expert or CPA made while providin […] The IRS issues more than 9 out of 10 refunds in less than 21 days […]
2
Tax Tips for Bitcoin and Virtual Currency – TurboTax Tax Tips & Videos
turbotax.intuit.com – Today
OVERVIEW Virtual currency like Bitcoin has shifted into the public eye in recent years. Some employees are paid with Bitcoin, more than a few retailers accept Bitcoin as payment, and others hold the e-currency as a capital asset. Recently, the Internal Revenue Service (IRS) clarified the tax treatment of virtual currency transactions.
155
TurboTax® Basic CD/Download 2020-2021 Tax Software, Easy Tax Preparation
turbotax.intuit.com – Today
[…] calculations are 100% accurate so your taxes will be done right, guaranteed, or we’ll pay you any IRS penalties […]
82
Can Feudalism Save the Western World? –
[…] land, worked about 30 days a year for his lord (as opposed to the average American’s 167 for the IRS), and could NOT work on Sundays and the 30-odd Holy Days of obligation and certain other state […]
N/A
FAQ – Coronavirus: Impact on Benefits and Employment
[…] or The individual experiencing any other substantially similar condition as specified by HHS/Labor/IRS […] The individual experiencing any other substantially similar condition as specified by HHS/Labor/IRS 2/3 of the greater of the amount of pay (defined above), subject to maximum of $200 per day o […] As discussed in our At Issue and CBIZ article, the IRS recently issued guidance (IRS Notice 2020-29) that temporarily permits, but does not require, Section 125 cafeteria plans t […]
2
Third stimulus check updates today: IRS tax return, $600 California, dates, who gets and how much | Live
en.as.com – Today
Third stimulus check updates today: IRS tax return, $600 California, dates, who gets and how much | Live AS ENGLISH Update 20 February 2021 […] 9 trillion COVID-19 aid bill – Dollar nurses losses after jobs data mars recovery – Your IRS tax return may affect your third stimulus check amount (full story) – Governor Newsom has announced […] los cheques de estímulo en español) – US covid-19 cases/deaths: 28 million / 495,804 (live updates) IRS warns against latest scam doing the rounds ​​​​​​The Internal Revenue Service, state tax agencie […] such as vaccine production and the next stimulus checks How to track your tax refund 2021 status in IRS web The IRS are ready for your 2020 tax returns and you can check the progress of any refunds you are owed […]
0
Important reminders before filing 2020 tax returns | Internal Revenue Service
[…] The IRS reminds taxpayers that they may elect to use their 2019 earned income to figure the EITC if thei […] taxpayers who received a refund on their 2019 tax returns also received interest from the IRS […] The IRS will send a Form 1099-INT to anyone who receives interest totaling at least $10 […]
36
Insects | Special Issue : Insecticides for Mosquito Control: Strengthening the Evidence Base
[…] control, which relies heavily on insecticide-treated nets (ITNs) and indoor residual sprays (IRS) […]
0
Understanding The Pros And Cons Of Life Settlement Investments
[…] The IRS considers any earnings that are larger than the investment as taxable […]
2
Budget Check Up: Tax Time Is the Right Time | Karl Weidel Insurance
[…] IRS, 2019 The content is developed from sources believed to be providing accurate information […]
N/A
Budget Check Up: Tax Time Is the Right Time | Deep South Investment Service LLC
[…] IRS, 2019 The content is developed from sources believed to be providing accurate information […]
0
Ex-WilmerHale Temp Says White House Atty Lied For Toyota – Law360
[…] authorities — meaning the Justice Department, the IRS, the SEC — and also from its shareholders,” Delaney’s attorney Christopher Beres told Law360 […]
1
How to Start a Small Business – State Farm®
[…] Is your business a sole proprietorship or a partnership? The Internal Revenue Service (IRS) can provide more information on types of business structures […] help run your small business, you’ll need to apply for employee identification numbers through the IRS […]

 

Tax Refund Chart Can Help You Guess When You’ll Receive Your Money In 2021

Hear that? It’s the sound of millions of taxpayers cheering across the country: the Internal Revenue Service (IRS) has announced the open of the tax filing season. That date is February 12, 2021.

If you want to get your refund as fast as possible, the IRS recommends that you e-file your tax return and use direct deposit (be sure to double-check those account numbers before you send your return). If you file by paper, it will take longer. According to the IRS, eight out of 10 taxpayers get their refunds by using direct deposit.

Assuming no delays, here are my best guesses for expected tax refunds based on filing dates and information from the IRS. I can’t stress enough that these are simply educated guesses. I like math and charts as much as the next girl, but there are a number of factors that could affect your tax refund (keep reading)

PROMOTED Civic Nation BrandVoice | Paid Program The Role Of A Mentor Grads of Life BrandVoice | Paid Program How Reimagining Employment Practices Can Advance Racial Justice UNICEF USA BrandVoice | Paid Program UNICEF-Supported Vaccinators Won’t Stop Until They Eradicate Polio In Afghanistan

refund chart
KPE

* No matter when you filed your tax return, if you claimed the EITC or the ACTC, don’t forget to take into consideration that hold date.

My numbers are based on an expected IRS receipt date beginning on the open of tax season, February 12, 2021, through the close of tax season on April 15, 2021. To keep the chart manageable, I’ve assumed the IRS received your e-filed tax return on the first business day of the week; that’s usually a Monday, but if there’s a holiday (like President’s Day), I’ve skipped ahead until Tuesday. The same logic holds true for issuing refunds. In reality, the IRS issues tax refunds throughout the week, so the date could move forward or backward depending on the day your return was received.

MORE FOR YOU

McConnell Blocks Trump’s, Democrats’ Bid To Increase Stimulus Checks To $2,0005 Mistakes To Avoid With Retirement Account Beneficiary SelectionsTrump May Not Sign Stimulus Bill Without $2,000 Stimulus Checks; Here’s What Could Happen Next

Other sites may have different numbers but remember they’re just guessing, too: The IRS no longer makes their tax refund processing chart public.

Do not rely on any tax refund chart—this one included—for date-specific planning like a large purchase or a paying back a loan. 

Remember that if you claim the earned-income tax credit (EITC) and the additional child tax credit (ACTC), the IRS must wait until February 15 to begin issuing refunds to taxpayers who claim the EITC or the ACTC (that’s pretty close to the start date). Don’t forget to consider regular processing times for banks and factor in weekends and the President’s Day holiday. The IRS expects to see tax refunds begin reaching those claiming EITC and ACTC during the first week of March for those who file electronically with direct deposit and there are no issues with their tax returns.

If you want to get your tax refund as fast as possible, the IRS recommends that you e-file your tax return and use direct deposit. Keep in mind that if you e-file, the day that the IRS accepts your return may not be the day that you hit send or give the green light to your preparer. Check your e-filing confirmation for the actual date that the IRS accepts your return.

If you file by paper, it will take longer. Processing times can take more than four to six weeks in the best of times (and these are not the best of times) since the IRS has to manually input data. Don’t forget about postal holidays, too, when counting on the mail. There’s just one official postal holiday during tax season, Monday, February 15 (President’s Day), and one that follows just after tax season, Monday, May 31 (Memorial Day).

Even if you request direct deposit, you may still receive a paper check. Since 2014, the IRS has limited the number of refunds that can be deposited into a single account or applied to a prepaid debit card to three. Taxpayers who exceed the limit will instead receive a paper check. Additionally, the IRS will only issue a refund by direct deposit into an account in your own name, your spouse’s name or both if it’s a joint account. If there’s an issue with the account, the IRS will send a paper check.

If you’re looking for more information about the timing of your tax refund, don’t reach out to your tax professional. Instead, the IRS encourages you to use the “Get Refund Status” tool. Have your Social security number or ITIN, filing status and exact refund amount handy. Refund updates should appear 24 hours after your e-filing has been accepted or four weeks after you mailed your paper return. The IRS expect that the refund tool will be updated for those claiming EITC and ACTC, beginning on February 22, 2021. Otherwise, the IRS updates the site once per day, usually overnight, so there’s no need to check more than once during the day.

If you’re looking for tax information on the go, you can check your refund status with IRS2Go, the official mobile app of the IRS. The app includes a tax refund status tracker.

Remember that the IRS will not contact you by phone or by email regarding your refund. If you receive a call from someone claiming to be from the IRS or a debt collection agency regarding your tax refund, hang up immediately: it is a scam. Follow me on Twitter or LinkedIn. Check out my website

Kelly Phillips Erb

Kelly Phillips Erb Years ago, I found myself sitting in law school in Moot Court wearing an oversized itchy blue suit. It was a horrible experience. In a desperate attempt to avoid anything like that in the future, I enrolled in a tax course. I loved it. I signed up for another. Before I knew it, in addition to my JD, I earned an LL.M Taxation. While at law school, I interned at the estates attorney division of the IRS. At IRS, I participated in the review and audit of federal estate tax returns. At one such audit, opposing counsel read my report, looked at his file and said, “Gentlemen, she’s exactly right.” I nearly fainted. It was a short jump from there to practicing, teaching, writing and breathing tax. Just like that, Taxgirl® was born.

.

Gregg Learning

Once the tax liability has been determined, we must consider the final three items in income tax preparation: tax credits, other taxes, and payments. When an overpayment occurs, the taxpayer has the option of receiving a refund or applying the amount of the overpayment to next year’s estimated tax.

.

More Contents:

SimplyNoted Integrates with PropertyRadar http://www.propertyradar.com – Today[…] Property type Owner occupied Transaction volume per month Estimated equity Assessed value Estimated tax rate More Between the criteria you select to build your lists and the deep insights you get fo […]1

Thoughts on the Beginning by Al Sikes talbotspy.org – Today[…] faced by small businesses, I also noted how big businesses operate within a framework of tax advantage. They retain a variety of international experts to help them minimize taxes. Tax specialists guide them through the intricacies of reduction as they move manufacturing, sales […] intricacies of reduction as they move manufacturing, sales, distribution and even headquarters to tax-advantaged locations. President Biden is recommending a corporate tax increase going from 21% to 28%. Specific tax thresholds can get very complicated and are well beyond these several paragraphs […]0

WeekWatch – 25_01_2021 | St. James’s Place Wealth Management partnership.sjp.co.uk – Today[…] ahead, there are some fears that the chancellor’s rumoured plans to hike the main rate of corporate tax could dampen the recovery […]6

Hydropower Provisions Included in 2021 Appropriations Bill | Troutman Pepper – JDSupra http://www.jdsupra.com – Today[…] Next, the Act extends the production tax credit (PTC) and investment tax credit (ITC) in lieu of PTC through January 1, 2022 at existing rates […]0

WeekWatch – 25_01_2021 | St. James’s Place Wealth Management http://www.hjpcfp.com – Today[…] ahead, there are some fears that the chancellor’s rumoured plans to hike the main rate of corporate tax could dampen the recovery […]0

Investments and Insurance – Popular Private Client – Popular Bank http://www.popularbank.com – Today[…] the benefits of your employer-sponsored plans, a 401(k), 403(b), or 457, and tapping into the other tax-advantaged plans such as IRAs and small business retirement plans, is one of the best ways t […] Not all tax advantages may be available to you […] as they relate to your individual retirement accounts, should be reviewed with your professional tax advisor […]28

— Are financial savings and insurance products safe… cmsgroupca.tumblr.com – Today[…] Tax-free savings account The tax-free savings account is an occupied or seizable savings product, regardless of the kind o […] The people who have a justifiable social insurance number to set money apart from tax-free throughout their lifetime. The benefaction of a tax-free savings account is not conclusive for income tax purposes […]0

Saudi sovereign wealth fund to invest billions to tackle soaring joblessness http://www.middleeasteye.net – Today[…] pandemic and a drop in oil prices prompted the top crude exporter to triple its value-added tax and suspend a monthly allowance to civil servants to rein in a ballooning budget deficit […]0

Thomas Azzara on LinkedIn: Google has no office, no staff and little more than a plain PO Box http://www.linkedin.com – Today[…] ; “We are pleased to tell you that our examination of your tax return(s) for above periods shows no change is necessary in the tax reported.” – Lowrery / Chief Examination Division/IRS (tax reported was 0$) (IRS audit was for Thomas Azzara) Google’s PO Box in Bermuda […] They probably have several companies in Bermuda – a no tax haven. Trade stocks tax-free (Capital Gains Taxes) OK under the Internal Revenue Code for foreign companies […]0

Save The Poudre – Help us save the Poudre from the NISP/Glade Reservoir http://www.savethepoudre.org – Today[…]  If you can afford $100 or $250 or more, that’s great too! All donations are tax deductible Please donate on our website at: http://www […] ” The memo reminds the City Council that the citizens of Fort Collins tax themselves to buy these Natural Areas, most recently by a city-wide vote in 2014 with 82 […] All donations are tax deductible Please donate on our website at: http://www […]49

Strength * Rose Quartz, Aquamarine, Moonstone & Carnelian – crystal-point-gems.com – Today[…] 00 Tax included […]0

School choice legislation on the fast track myemail.constantcontact.com – Today[…] the “Missouri Empowerment Scholarship Accounts Program” and specifies that any taxpayer may claim a tax credit, not to exceed 50% of the taxpayer’s state tax liability, for any qualifying contribution to an educational assistance organization for all tax years beginning on or after July 1, 2022. The cumulative amount of tax credits issued in any one calendar year shall not exceed $50 million […]0

Medicare Advantage Plans (Medicare Part C) | James DeMinno CPA http://www.deminno.tax – Today[…] The information in this material is not intended as tax or legal advice. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation […]0

OMG: The Right Is Trying to Turn Insurrectionist Snowflake Josh Hawley Into a Free Speech `Martyr’ http://www.dailykos.com – Today[…] that the job of the Republican Party to team up with corporate America to force deregulation and tax cuts on the public […]0

Advancing Innovation to Make the U.S. More Globally Competitive spark.adobe.com – TodayTax Policy Tax policy not only helps drive competitiveness, but is an effective tool to support economic growth […] maintains an internationally competitive tax system, including a competitive and fiscally responsible corporate tax rate. Policymakers also have the opportunity to leverage tax policy to promote growth in high-skilled, highly paid jobs, including by supporting innovation an […] certainty for businesses worldwide and turn the tide against the proliferation of unilateral tax measures that contravene key international tax policy norms and impact the competitiveness of U […]0

Janet Yellen’s Senate confirmation vote to be treasury secretary set for Monday – CBS News http://www.cbsnews.com – Today[…] Yellen on a number of her positions, particularly in the tax policy arena, but she has committed to us that she will work with us on these issues and th […]0

Rémi Belliveau on Lost Classics of Acadian Disco and Rock ’n’ Roll – canadianart.ca – Today[…] When she replies that she’s not only Acadian, but also a proud tax-paying (my terminology) Québécoise (she’d been living in Montreal for almost 20 years by that time) […]43

“It Ain’t Over Till It’s Over” – Newsroom – About.usps.com about.usps.com – Today[…] The Postal Service receives no tax dollars for operating expenses and relies on the sale of postage, products and services to fund its […]15

PSW Tax Coffee Chat – 2020 Tax Relief Bill – Cvent | Online Registration by Cvent events-meetings.kpmg.com – TodayLegal | Privacy © 2021 KPMG LLP, a Delaware limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. For more detail about the structure of the KPMG global organization, please visit https://home.kpmg/xx/en/home/misc/governance.html.N/A

Security Summit Alert: New Two-Stage Email Scheme Targets Tax Professionals | Internal Revenue Service http://www.irs.gov – Today[…] 11, 2017 WASHINGTON – The Internal Revenue Service, state tax agencies and tax industry leaders today warned tax professionals to be alert to an email scam from cybercriminals posing as clients soliciting thei […] The tax professional may think they are downloading a potential client’s tax information or accessing a site with the potential client’s tax information […]5

Samoa: Staff Concluding Statement of the 2021 Article IV Mission HTML File http://www.marketscreener.com – Today[…] The surplus in FY2020 was driven by a favorable outturn in tax revenue collection owing to improved tax compliance in advance of the phased rollout of the Tax Invoicing Management System (TIMS) […] through revenue mobilization over the medium term: A holistic approach will be needed by improving tax compliance, increasing excises (e.g., alcohol and tobacco), and broadening the VAT tax base in light of a gradual revenue loss expected from the PACER-Plus agreement […]0

HMRC waives penalty for late filing of self-assessments http://www.bbc.co.uk – Today[…] The tax agency said more than 8.9 million customers have already filed their tax returns. However, taxpayers are still required to pay their tax bills by 31 January […] However, they will need to file their 2019-2020 tax return first. People who have tax bills over £30,000, or who need longer than 12 months to pay their bill, are advised to call HMRC […]0

Money Management – Webster First Federal Credit Union http://www.websterfirst.com – Today[…] more Search by keyword or amount, or filter by account and date to quickly find specific entries Tax deductible transactions can be marked throughout the year and filtered for easy access come tax time               Keep track of spending and set budgets Use a visualization of spendin […]0

HOT JOBS & COOL JOBS: RN/LPN CHARGE NURSE 10PM 630AM 5000 SIGN ON BONUS BIRMINGHAM AL USA http://www.e-physician.info – Today[…]  Pay package is based on 12 hour shifts and 36 hours per week (subject to confirmation) with tax  […]  Pay package is based on 12 hour shifts and 36 hours per week (subject to confirmation) with tax  […]0

Paychex | Paychex-IFA Empower Hour pages.paychex.com – Today[…] of the Paycheck Protection Program (PPP), changes to the employee retention and paid leave tax credits, and more […]

Cut Payroll Taxes? Stimulate Ventilator Companies

Empty airports and restaurants, disrupted supply chains and closed schools will have devastating effects on the economy. Is there a way to counteract the damage? Here are nine stimulus schemes: two in place, six being debated by politicians and one that is not widely discussed but probably should be.

Cut interest rates. The Federal Reserve’s recent half-point reduction in the already low short-term interest rate hasn’t had a visibly positive effect. The stock market is down 12% since the cut was announced. Evidently interest rate changes don’t get people onto cruise ships.

Lend money. The $8.3 billion antivirus legislation signed last week includes authorization for more Small Business Administration loan guarantees. A loan could tide over a retailer or restaurant that might otherwise go under. Unfortunately, SBA benefits are concentrated on the least capable entrepreneurs.

Cut payroll taxes. A reduction in Social Security tax puts money in your pocket—if you haven’t lost your job. It doesn’t open a coffee shop that closed its doors because the offices on that block have employees working from home.

The anti-recession efforts put in place after the 2008-2009 financial crisis included a two-point reduction in payroll taxes. The main effect was to increase the deficit. President Trump favors a full elimination, through the end of the year, of federal payroll taxes. This would have a more powerful effect on the deficit.

Give handouts to restaurants and hotels. That’s what the San Francisco Chamber of Commerce wants its city government to do. On Monday Trump mentioned the possibility of federal aid to hotels.

Send everybody money.This has been done before. President Gerald Ford tried to combat the 1973-1974 recession by having the U.S. Treasury send, in 1975, gifts of $100 to $200 to citizens who had paid taxes the year before. Barack Obama’s stimulus plan had similar gratuities, in the $300 to $600 range.

Give tax breaks to troubled sectors. A tax reduction for airlines and cruise operators is not going to prevent worried customers from cancelling trips. On the other hand, it might not cost much; the travel industry is probably going to wind up with loss carryforwards that will eliminate income taxes for years.

But when Congress expresses a willingness to help one industry, others line up. This is how we get 2,000-page tax bills.

Shoe retailers, for example, now say they are especially deserving of a break. Senators from North Dakota and Oklahoma say that the shale oil industry needs help.

The energy sector is indeed important to the functioning of the economy, and it employs a lot of people. But its plight is only partly attributable to the coronavirus. The immediate problem is that Saudi Arabia and Russia are engaged in a price war.

Pay for sick leave. Millions of workers don’t get paid time off for sickness. That leaves them with diminished motivation to stay home when they are coughing.

One solution, initially favored by Speaker Nancy Pelosi and Senator Charles Schumer, would be legislation mandating that employers pay for sick leave. Another would be to allow sick or quarantined workers to draw from unemployment compensation funds. Yet another is for the federal government to chip in for sick leave.

House Democrats are likely to take up sick leave and unemployment insurance today. The Republican-controlled Senate might have different ideas.

Buy food for kids. Children who rely on subsidized lunches are in trouble when their schools close. That problem could be addressed via changes to existing nutrition programs, now under debate in the House.

Not easily corrected: the permanent loss of productive capacity when the kids’ parents have to stay home.

There’s plenty of talk about those eight methods of stimulating. Now here’s one that doesn’t have much visibility yet.

Pay for ventilators. This would be a very roundabout way to help the economy. By allaying the fear of death, an ample supply of intensive-care equipment could restore people’s willingness to patronize restaurants and theaters.

This fear is not irrational, at least for those over 60. You can get a taste of it by perusing a November 2015 report from a task force reviewing ventilator supplies in New York. During a Spanish-flu-level pandemic, the authors posit, the state would see a peak demand of 18,619. There would be only 2,836 available (including 1,750 now in stockpiles). So doctors would have to come up with some algorithm, perhaps involving dice-throwing, to determine which patients would be permitted to live.

Hospitals, already under financial pressure, are disinclined to buy ventilators whose cost they might never recover. They would need a subsidy to add to their stockpile. They would need a subsidy to undertake, beginning sometime before the dice-throwing starts, emergency training of additional ventilator nurses. If the government wants ICU equipment right away, it would also need to pay manufacturers for incremental production capacity that may become useless six months from now.

A worthwhile investment? Probably more worthwhile than assistance to oil drillers.

Get Forbes’ daily top headlines straight to your inbox for news on the world’s most important entrepreneurs and superstars, expert career advice, and success secrets.

I aim to help you save on taxes and money management costs. I graduated from Harvard in 1973, have been a journalist for 45 years, and was editor of Forbes magazine from 1999 to 2010. Tax law is a frequent subject in my articles. I have been an Enrolled Agent since 1979. Email me at williambaldwinfinance — at — gmail — dot — com.

Source: Cut Payroll Taxes? No, Trump Should Stimulate Ventilator Companies

Please follow my instagram: http://instagram.com/arminhamidian67

After the stock market plummeted Monday, President Trump proposed a payroll tax cut through the end of the year and expanding paid leave for workers. » Subscribe to NBC News: http://nbcnews.to/SubscribeToNBC » Watch more NBC video: http://bit.ly/MoreNBCNews NBC News Digital is a collection of innovative and powerful news brands that deliver compelling, diverse and engaging news stories. NBC News Digital features NBCNews.com, MSNBC.com, TODAY.com, Nightly News, Meet the Press, Dateline, and the existing apps and digital extensions of these respective properties. We deliver the best in breaking news, live video coverage, original journalism and segments from your favorite NBC News Shows. Connect with NBC News Online! NBC News App: https://smart.link/5d0cd9df61b80 Breaking News Alerts: https://link.nbcnews.com/join/5cj/bre… Visit NBCNews.Com: http://nbcnews.to/ReadNBC Find NBC News on Facebook: http://nbcnews.to/LikeNBC Follow NBC News on Twitter: http://nbcnews.to/FollowNBC Follow NBC News on Instagram: http://nbcnews.to/InstaNBC Trump Wants Payroll Tax Cut, Other Measures To Offset Coronavirus Economic Damage | NBC Nightly News

Could A Tourist Tax Be The Answer To Norway’s Overtourism Problem?

The number of tourists coming to Norway continues to increase. In 2019, several natural attractions including the trail to the Pulpit Rock and hiking trails in Lofoten received record numbers of international visitors.

Locals are frustrated with congested roads and inconsiderate parking, while small municipalities complain that they can’t afford the necessary improvements to cope with the number of visitors, which more often than not far outnumber local residents. Calls have never been louder for a tourist tax.

A study by Innovation Norway of the highest profile Norwegian destinations found that discontent is high among a clear majority of the local population. These areas include the cities Bergen, Stavanger and Ålesund, along with more remote areas including Geiranger, Lofoten, Aurland and Svalbard. Almost two-thirds of those surveyed supported the introduction of a tourist tax.

According to the European Tourism Association, the concept of a visitor tax is not yet popular in northern Europe. Denmark, Sweden, Estonia and Latvia are among the countries not to have implemented the concept. The most visited countries in Europe—France, Spain and Italy—have all introduced charges.

Tourist tax under discussion by Norway’s MPs

For the second time in two years, the Norwegian Parliament is discussing the concept of a tourist tax. Last time the proposals were voted down, but given the recent changes in the coalition government, things could well be different this time around. Both the Labour party and Center party appear to now be in favor of allowing select municipalities to introduce some kind of local visitor fee.

One person who is hoping for an agreement is Jan Ove Tryggestad, the Mayor of Stranda municipality, which includes the tourist magnet Geiranger. “Today, there are a number of tourist destinations in Norway that are struggling. We cannot take any responsibility for what mass tourism imposes on us,” he told NRK.

Tryggestad also said he believes “tourist tax” is a loaded term and prefers to call the proposal “joint fundraising.” He also proposed alternatives to the typical accommodation-based way tourist taxes are collected at locations across Europe, presumably because so many visitors to Geiranger are day-trippers from cruise ships.

He suggested mobile payments, toll stations or a simple levy on goods and services in the specified zone could all be potential solutions.

How authorities elsewhere in Norway are tackling overtourism

Elsewhere in Norway, other measures are being introduced ahead of what is expected to be another record-breaking summer season.

The Foundation responsible for the facilities at Pulpit Rock are implementing limits on the number of tour buses allowed at the parking lot at any one time. While they are not limiting numbers taking the hike, they hope to better spread those numbers across the day.

City bosses in Bergen have extended the summer ban on passenger vehicles using Bryggen and Torget in the historic center to tourist buses. Such buses will also be banned from Øvregaten, an important access road to Bryggen. While many in the city are pleased with the news, owners of local tourism companies have spoken out against the proposals. There are several hotels in the restricted zone, which could cause problems for those traveling to and from cruise ships.

Finally, the Norwegian government is also considering imposing a size limitation on cruise ships around Svalbard. They are also considering extended the current ban on the use of heavy fuel oil (HFO) to cover the entire archipelago.

Follow me on Twitter. Check out my website.

I was born in the U.K. but moved to Norway in 2011 and haven’t looked back. I run a website and podcast for fellow expats, authored the Moon Norway travel guidebook, help Norwegian companies with their English, and spend my free time touring the country to discover more about the people and places of this unique corner of the world. I write for Forbes with an outsider’s inside perspective on Norway & Scandinavia.

Source: Could A Tourist Tax Be The Answer To Norway’s Overtourism Problem?

1.18M subscribers
Cities and attractions across the globe are experiencing severe overcrowding and other stresses brought on by too many tourists. According to the United Nations’ World Tourism Organization, there were around 70 million international tourist arrivals back in 1960. Today, that number has hit more than 1.4 billion. Erin Florio, travel news director for Conde Nast Traveler, joins “CBS This Morning” to discuss the impact of all that tourist traffic. Watch “CBS This Morning” HERE: http://bit.ly/1T88yAR Download the CBS News app on iOS HERE: https://apple.co/1tRNnUy Download the CBS News app on Android HERE: https://bit.ly/1IcphuX Like “CBS This Morning” on Facebook HERE: http://on.fb.me/1LhtdvI Follow “CBS This Morning” on Twitter HERE: http://bit.ly/1Xj5W3p Follow “CBS This Morning” on Instagram HERE: http://bit.ly/1Q7NGnY Get new episodes of shows you love across devices the next day, stream local news live, and watch full seasons of CBS fan favorites anytime, anywhere with CBS All Access. Try it free! http://bit.ly/1OQA29B Each weekday morning, “CBS This Morning” co-hosts Gayle King, Anthony Mason and Tony Dokoupil deliver two hours of original reporting, breaking news and top-level newsmaker interviews in an engaging and informative format that challenges the norm in network morning news programs. The broadcast has earned a prestigious Peabody Award, a Polk Award, four News & Documentary Emmys, three Daytime Emmys and the 2017 Edward R. Murrow Award for Best Newscast. The broadcast was also honored with an Alfred I. duPont-Columbia Award as part of CBS News division-wide coverage of the shootings at Sandy Hook Elementary School in Newtown, Connecticut. Check local listings for “CBS This Morning” broadcast times.
%d bloggers like this: