Dorothy Rice Bookkeeping & Tax Service

05/10/2021

We are officially one week away from the federal tax deadline, May 17th. If you need to file an extension please call and let us know. However, this will only give you an extension to FILE. It does not give you an extension to PAY your taxes. Therefore, you will still be charged penalties and interest if your payment is late.

04/08/2021

The American Rescue Plan excludes from income up to $10,200 of unemployment compensation paid in 2020. If you have already filed your 2020 Form 1040, you should NOT file an amended return. The IRS will automatically refund money to people who already filed their tax return reporting unemployment compensation.

03/18/2021

Check the status of your stimulus payment here⬇️

Use Get My Payment to get information about your payment status and payment type.

03/18/2021

The Treasury Department and Internal Revenue Service announced today that the federal income tax filing due date for individuals for the 2020 tax year will be automatically extended from April 15, 2021, to May 17, 2021.

03/13/2021

begins delivering 3rd round of Economic Impact Payments. Social Security and other federal beneficiaries will generally receive it the same way as their regular benefits.

More at https://go.usa.gov/xsw4H

03/13/2021

Another stimulus package has been approved as part of the American Rescue Plan, which also includes additional tax credits and unemployment benefits. Here’s what you need to know about upcoming stimulus payments:

- This time, more dependents qualify. Millions of full-time and part-time workers, self-employed, unemployed and retired Americans are eligible to receive a third stimulus. Unlike the first two rounds of stimulus payments, you will receive stimulus money for all dependents on your tax return, including college students and adult dependents.

- Payouts can be estimated with our stimulus payment calculator. If you’re eligible, the base amount under this new bill allows for $1,400 per individual or $2,800 per couple, and $1,400 for each dependent. Payments vary based on income, number of dependents and your filing status.

- Tax returns determine stimulus amounts. The IRS will use the most recent information it has on file to determine your stimulus amount. This information could be from your 2020 tax return, or if you haven't filed this year or the IRS hasn't processed your 2020 return, they may use information from your 2019 return.

- Once the IRS processes your payment, the IRS Get My Payment website will display when you should expect the payment as well as the account information where a direct deposit will be sent or if a payment will be mailed.

- Updated unemployment measures could provide you additional relief. The American Rescue Plan also states the first $10,200 of unemployment benefits received will not be taxed for households with adjusted gross incomes of less than $150,000 (for joint filers, it’s up to $10,200 per spouse) in 2020.

02/08/2021

We will be sending in returns electronically starting this Friday, February 12th!
Check the status of your federal income tax refund using the ‘IRS2Go’ app. You can check your refund status within 24 hours after we e-file your return, or about 4 weeks after mailing your paper return. You can also check the status of your refund on the IRS website.
https://www.irs.gov/refunds

01/18/2021

Mark your calendars! The IRS announced that they will begin processing 2020 tax returns on Friday, February 12, 2021.

12/30/2020

and the Treasury Department began a second round of Economic Impact Payments to millions of Americans. There is no action required by eligible individuals to receive this new payment. Initial direct deposit payments have started arriving for some and continue into next week for many. Paper checks have started being mailed starting today and continue into January.

Some people may see the direct deposit payments as pending before the official payment date of Jan. 4, 2021. Please keep in mind that the payments are automatic, and you don’t need to contact your financial institution or the IRS with payment timing questions.

Most recipients will receive payments by direct deposit. People who got the first payments via Direct Express will receive this second payment the same way. For anyone who receives payments by check or debit card, these will be mailed through January. Carefully check your mail. Eligible individuals who didn’t receive an Economic Impact Payment this year – either the first or the second payment -- will be able to claim it when they file their 2020 taxes in 2021. You can check the status of your payments in a few days by using the Get My Payment tool, available in English and Spanish on IRS.gov.

For details, see: https://go.usa.gov/xAK4f

12/15/2020

As 2020 draws to a close, it is important for all employers to issue Form W-2/1099 to their employees without any delay so they can start preparing their annual tax returns.
- Employers need each employee’s full name, address, and Social Security number to file W-2s/1099s.
- Since January 31st falls on a Sunday, the deadline for furnishing copies to employees is Monday, February 1st, 2021.
- It’s important for the employers to send these forms to their employees and file them to SSA before the deadline otherwise heavy penalties for late submissions or wrong information will be imposed.

09/22/2020

The Tax Deadline to e-File 2019 Returns is October 15, 2020! If you missed the July 15, 2020 Tax Day, late penalties may apply.

Tip: You want to file as soon as possible even if you cannot pay your taxes.

Why? The late filing penalties are generally higher than late payment penalties.

07/07/2020