Blog - Helpful Hints

Keep up to date on the latest tax and accounting news and updates on the business.

 

Spring Cleaning - April 2020

I just recently sold my business of over 15 years and I am anxious to go through my files and get rid of years and years of files and documents I have been holding onto.  And, being that this is Tax month, I felt this would be a good time to do a little research and figure out what I need to keep and what I can toss or shred.  Spring time is a good time of year to get your house organized and with these helpful tips you can make the office clean up quickly and efficient.  If you’re like me and you have several years of file cabinets and boxes full of old files, I can help you sort through, organize and set up a new clean and efficient filing system in no time.  Please contact me and we can get started right away.  In the meantime, this handy guide from the book, "1001 Timely Tips for Clutter Control", by Frank Cawood and Associates, "will help you know how long you should keep certain personal documents - and when it's OK to toss them."  Happy Cleaning!

Keep Forever

July 2020

Remember, July 15 is now the tax filing due date because of the pandemic! It also means you may have a tax payment due on or before July 15. And if you have not yet received your federal stimulus check, this month's newsletter tells you what you should do. Also included is a recap of recent news that gives business owners more flexibility for getting your PPP loan forgiven.

Also included in the newsletter are some ideas for fun, summertime activities for the entire family.

Please call if you would like to discuss how this information could impact your situation. If you know someone who can benefit from this newsletter, feel free to send it to them.

Contents

IMPORTANT! You May Owe a Tax Payment This Month

Find out if you owe the IRS an estimated tax payment

IMPORTANT Taxes Due July 15 imageYou may owe the IRS a tax payment for your 2020 tax return and not know it.

Most Americans have income taxes withheld from their paychecks, with their employer sending a tax payment to the IRS on your behalf. This year, however, many more Americans will have to write Uncle Sam a check to pay a portion of their 2020 taxes on or before July 15. You may be one of these people!

Who needs to pay now!

You may need to make a payment if one of the following situations applies to you:

What you need to do

Estimate your total income for 2020, then calculate your total 2020 tax bill and divide it by 2. Compare this amount to how much has been withheld from your paychecks, unemployment benefits and any other payments you've made to the IRS. If you're short, consider making an estimated payment by July 15 to make up the difference. This payment is made with Form 1040-ES.

If you do not make this payment on time, the IRS may impose a penalty plus interest on top of the underpaid taxes. Fortunately, you can avoid a penalty by paying at least 90% of the current year’s tax liability or 100% of the prior year’s tax liability (110% if your adjusted gross income for the prior year exceeds $150,000).


Help! My Stimulus Payment is Wrong or Missing!

Millions of Americans already received their economic impact payment. But what if you're still waiting or your payment was for an incorrect amount?

Here are some common scenarios why you may not have received your payment, or the payment you did receive was for an incorrect amount, and what you can do.

Receiving the wrong amount of money in your stimulus check or not receiving a check at all can be very frustrating. But be reassured the IRS is doing everything it can to help you get the correct amount of money that you deserve.

More information: If you have other questions or concerns, the IRS has a question and answer resource. Click here to read through the IRS Q&A.


Small Business Owners Get Good News on PPP Loan Forgiveness

Small Business Owners Get Good News on PPP Loan Forgiveness imageSmall business owners, self-employed workers and freelancers received some welcome news when Congress recently passed the Paycheck Protection Flexibility Act. This new law clarifies how businesses can qualify to have all or a portion of its Paycheck Protection Program (PPP) loan forgiven.

Here is what you need to know:

December 31, 2020 is the new deadline to spend loan proceeds. When the PPP program was rolled out this spring, businesses were given 8 weeks after loan funding to use the loan’s proceeds if they wanted to qualify for loan forgiveness. That timeline has now moved to 24 weeks. Due to the extended stay-at-home orders and further assessment of the pandemic, the new deadline is now effectively December 31, 2020.

More loan proceeds can be used for non-payroll expenses. The original law required 75% of loan proceeds to be spent on payroll. For businesses with high cost of goods sold or who had trouble convincing furloughed workers to return to work, hitting this 75% threshold was problematic. The new law reduces the amount of loan proceeds required to be spent on payroll to 60%.

More flexibility in fully restoring workforce. Borrowers now have through December 31, 2020 to restore their workforce levels and wages to the pre-pandemic levels required for full forgiveness. There are three exceptions allowed for not having a fully-restored workforce by Dec. 31. Borrowers can adjust their loan forgiveness calculations because of:

Loan terms extended. For loans that do not qualify for forgiveness, borrowers now have up to five years to repay the loan instead of two. The interest rate remains at 1%. Since your bank has 60 days to process your loan forgiveness application and the SBA has 90 days to process the request, your initial payment is now effectively five to six months after your forgiveness application.

What you need to do


Get Rid of Your Kids' Summertime Blues

Have some family fun with these activities (while social distancing, of course!)

Let’s be honest. This is a strange summer. With many recreation activities canceled or significantly altered because of this year's pandemic and social distancing guidelines, families need to be creative to keep their kids energized and engaged. Never fear! Here’s a list of activities to create a memorable summer for your kids:

Don’t let this unique summer keep you from making amazing memories. With a little imagination, you might be able to make it the best summer ever!



Newsletter Archive

Please note: Some material may be time-sensitive and may no longer apply.
Please contact us with any questions.
  1. Posted on: 2020-06-02
  2. Posted on: 2020-05-05
  3. Posted on: 2020-03-31
  4. Posted on: 2020-03-03
  5. Posted on: 2020-02-04
  6. Posted on: 2019-12-31
  7. Posted on: 2019-12-03
  8. Posted on: 2019-11-05
  9. Posted on: 2019-10-01
  10. Posted on: 2019-09-03
  11. Posted on: 2019-08-06