Visions Tax Solutions and Services INC - Georgia

03/15/2021

"When will I get my stimulus check?"

Some payments have already started to arrive via direct deposit. Technically, the IRS has until the end of 2021 to issue the payments. Like in the last two rounds, it depends on how and when you last filed.

03/12/2021

We want to maximize your stimulus. Once the IRS issues you a stimulus payment, it's yours. TIMING matters, and so might how you file (in certain unusual cases).

TIMING:
If your 2020 income increased (vs 2019) ...

- If it didn't take you over the phase out thresholds, there is nothing needed for you to think about.
- If it brought your AGI above the phaseout thresholds (especially if over the 75K or 160K joint), and you have not filed your return: we will be waiting to file it until after you receive your stimulus.

If for some strange reason you are reading this and you are NOT our client, I urge you NOT to file until you receive payment.

If your increase brought your AGI above these thresholds, and you have already filed ... We are sorry. :( The IRS goes by the most recently-filed information for these decisions.

Congratulations on your income increase ... and let's work on other ways to reduce your tax obligations in the future.

If your 2020 income decreased (vs 2019) ...

- If your income was already under the phaseout thresholds, you will not be affected -- you will receive the stimulus no matter what.
- If your income decreased below the thresholds (i.e. your income in 2019 was above 75K or 150K filing joint and now it is below), you do NOT have to rush to get your return in.

The way this bill works is that there are two phases of how these stimulus payments will be distributed. In phase 1, the IRS will take the data it already has and pay out of that. If you didn't file a return in 2019 or 2020, you will not get a stimulus. But fret not ... in phase 2, there will be a second date on which the IRS will calculate stimulus payments. This will be for those who had an income decrease. That date will be the earlier of 90 days after the tax deadline day (whatever it might be -- more on that later), or September 1.

So as long as we get your taxes filed on time, you WILL get it. You do not have to FILE YOUR TAXES RIGHT NOW. Don't let any scammy tax pros or marketers tell you differently. Fortunately, this issue was (miraculously) considered within the text of the bill.

03/11/2021

The American Rescue Act passed, which means there are a host of new provisions available for taxpayers and businesses. We'll break these down in more detail in future days, but here are some of the broad strokes:

- $1,400 stimulus checks for individuals AND dependents
- $300/week federal unemployment insurance payments
- Expanded child tax credit to $3,000 for children ages 6-17 and $3,600 for children under age 6
- $7.25 billion in new PPP funds

The colossal package allocates money for COVID-19 vaccines, schools, small businesses and anti-poverty programs like the child tax credit. Here are the highlights, including what the Senate changed.

03/10/2021

2020 Tax Filing Tip:

If your income significantly increased in 2020 versus 2019 (i.e. if it took you OVER the threshold for the next round of stimulus checks), you should WAIT to file your 2020 taxes.

Here are the income limits in the current Senate bill (these are not yet final):

- Single filers with AGIs of 75 K or less
- Head-of-household filers with AGIs of 112,500 or less
- Married joint filers with AGIs of 150 K or less

The phaseouts happen fast. If your income gets above 160, then you'll be out of luck.

03/09/2021

Being a tax professional is NEVER boring (especially in the last year).

Here's the latest news we're tracking: the new Senate version of the "American Rescue Plan" includes provisions that will impact people who have already filed their taxes.

NOW the first $10,200 of unemployment insurance is NOT taxable (until this past weekend, all of it was considered taxable income).

That means retroactive changes will have to be made to returns based on legislation that is still being passed. (We'll keep you updated if it does. The Senate version has to go through reconciliation with the House bill.)

This is why it really helps to have a live person in your corner. Get in touch with us if you need help understanding all of the changes.

03/08/2021

The Senate passed the latest stimulus bill this weekend -- with some provisions -- so it's now being sent back to the House for approval.

Here are some of the changes in the Senate-approved bill:

- Lowers phase-out provisions for stimulus checks
- Provides $300/week in federal unemployment benefits through Sept. 6 and makes the first $10,200 in unemployment benefits tax-free in 2020 for households making less than $150,000 per year
- Removes federal minimum wage hike
- Removes funding for NY bridge and San Francisco railway projects

We'll put something out more definitively once it's been signed by the President.

This would be a great chance to get on our email list if you're not already, so toddle on over to our website and get on there to get the breakdown when it's ready.

The Senate made major changes from the House version of the bill, including reducing the number of people who will qualify for a $1,400 stimulus check.

03/05/2021

Here's what you need to know about the stimulus payments and your 2020 taxes:

Both the first stimulus payment from the March CARES Act and the second stimulus payment from the December stimulus bill are non-taxable events. In other words, you should NOT owe tax from them. Further, they do NOT count as income for determining whether you're eligible for government assistance or benefit payments.

If you missed them somehow and were eligible, that's when you claim the missing payments as a Recovery Rebate Credit on your 2020 tax return (we can help with that). That means that it will simply either increase the size of your total tax refund or lower the amount of taxes you owe.

If you don't usually file tax returns because you are under the income threshold, but are owed the stimulus payment, you will need to file a 2020 return. It doesn't mean that you'll have to pay tax; it is just what you need to do in order to collect the stimulus payments.

03/04/2021

If you received the first round of PPP, you still might be eligible to apply again ("Second Draw" PPP). Your business is eligible for this second draw if you:

1) Previously received a First Draw PPP Loan and will or have used the full amount only for authorized uses;
2) Have no more than 300 employees; and
3) You can demonstrate at least a 25% reduction in gross receipts between comparable quarters in 2019 and 2020

That final provision is a nice one because it means that we can take a look at a variety of circumstances that might make you eligible. Let us know if you need help.

03/03/2021

11/20/2020

Write your representatives to let them know what you think about this proposed new tax on remote workers.

Many people are discovering they enjoy working from home. Should they pay higher taxes if they decide to stay away from the office even after the pandemic?