Refund delays, stimulus check errors foreshadow rough tax season
Tax-refund delays and stimulus-payment hiccups could spill into the upcoming tax season as the Internal Revenue Service continues to face challenges related to the coronavirus pandemic and as Congress considers yet another round of direct payments. Millions of Americans waited months for refunds in 2020, and millions also have yet to receive some or all…
Tax Season Start Date
The IRS announced it will begin accepting and processing returns on Friday, Feb. 12, 2021. The decision was made to push back the start date by a month to allow the department extra time to prepare following the Dec. 27, 2020 tax law changes. The tax filing deadline remains April 15, 2021.
When are credit cards purchases deductible
Credit card statements are necessary to prepare your taxes. They have a record of items that were purchased with the credit card some of which may be tax-deductible on your tax returns. There is a belief that you deduct your purchases as you pay off your credit card: This belief is incorrect. When you put…
When are credit card purchases deductible?
Credit card statements are necessary to prepare your taxes. They have a record of items that were purchased with the credit card some of which may be tax-deductible on your tax returns. There is a belief that you deduct your purchases as you pay off your credit card: This belief is incorrect. When you put…
Before your first payroll of 2021
Update Employee Income and Deductions The first payroll of the year is the perfect time to review and update your employee deductions, such as: Medical Dental Life Insurance Retirement deductions such as 403(b) Other voluntary deductions You should plan to change retirement deductions based on the new limits for 2021. Limits generally change from year…
Who’s eligible for the second round of Economic Payment?
Generally, if you’re a U.S. citizen or U.S. resident alien, you may be eligible for $600 ($1,200 for a joint return), plus $600 for each qualifying child, if you (and your spouse if filing a joint return) aren’t a dependent of another taxpayer on a 2019 tax return, have a social security number (SSN) valid…
What Does “Personal Use of Church Vehicle” Mean?
Personal use of a church vehicle for non-work-related purposes is a taxable perk known as a de minimis benefit. Personal use of a church vehicle includes: Your employee’s commute between home and work, if it’s on a regular basis. Trips unrelated to your organization’s purpose, work, trade, etc. Use on a vacation or on the…
2021 standard mileage rates decrease
The Internal Revenue Service (IRS) released the 2021 standard mileage rates. Beginning January 1, 2021, the standard mileage rates for the use of a car (vans, pickups or panel trucks) will be: 56 cents per mile for ministry or business miles driven, down from 57.5 cents for 2020 16 cents per mile driven for medical,…
Use caution before making political statements
On July 28th of 2020, the IRS published the following guidance on Churches making political statements. “Under the Internal Revenue Code, all section 501(c)(3) organizations are absolutely prohibited from directly or indirectly participating in, or intervening in, any political campaign on behalf of (or in opposition to) any candidate for elective public office. Contributions to…
IRS Issues Basic Guidance on Payroll Tax Deferral for Churches
The IRS has issued Notice 2020-65 deferring the withholding and deposit of the employee’s share of Social Security (OASDI) taxes on applicable wages. Specifically, the deferral applies to applicable wages paid on a pay date between September 1, 2020, and December 31, 2020. The availability of deferral is based on the date the employee is paid….
