Credits & Deductions

  • IRS Says PPE Expenses Could be Deductible

    A new announcement from the Internal Revenue Service should come as welcome news to front-line health care workers nationwide. Announcement 2021-7 clarifies existing language to assure taxpayers that the purchase of personal protective equipment (PPE) can be deductible. When items such as masks, hand sanitizer and sanitizing wipes are purchased to prevent the spread of…

  • Taxpayers Can Still Get Credit for IRA Contributions on 2020 Returns

    Taxpayers, no matter their age, may be able to claim a deduction on their 2020 tax returns for contributions to their Individual Retirement Arrangement (IRA) if they make them by April 15. Contributions to a traditional IRA are usually tax-deductible, and distributions are generally taxable. Taxpayers have from now to April 15, 2021, to make…

  • The Employee Retention Credit Covered in New IRS Notice

    Congress bookended 2020 with two taxpayer relief packages aimed at mitigating the financial strain caused by the ongoing coronavirus pandemic. The Coronavirus Aid, Relief, and Economic Securities Act and Taxpayer Certainty and Disaster Tax Relief Act of 2020 include a number of provisions that either create or modify tax relief for individual taxpayers and businesses.…

  • IRS Highlights Info About the Credit for Other Dependents

    Today marks the official start of filing season, meaning millions of taxpayers across the country are starting to gather tax-related documents ahead of a visit with their tax preparer. For their part, the Internal Revenue Service is hard at work providing helpful tips about necessary forms and tax credits. One of the latest IRS reminders…

  • Employers Can Get Tax Credits for Providing Required COVID-19 Paid Leave

    Small and midsize companies have been particularly hard hit over the past year by COVID-19. And while those employers been stretched to their limits by paying out large sums for sick leave and family leave due to the pandemic, some help is available. The Families First Coronavirus Response Act, or FFCRA, became law in March…

  • New Guidance Clears Up Partnership Deduction for State, Local Taxes

    A new notice from the Internal Revenue Service reveals some new rules that are expected to be included in upcoming proposed regulations. Notice 2020-75 spells out the proposed regulations clarifying that state and local income taxes imposed on and paid by a partnership or S corporation on its income are allowed to be claimed as…

  • IRS Announces 2021 Income Ranges for IRA, Saver’s Credit Eligibility, and More

    Taxpayers trying to plan their 2021 deductible retirement plan contributions will be happy to learn that the Internal Revenue Service this week published Notice 2020-79. The IRS says the notice includes “income ranges for determining eligibility to make deductible contributions to traditional Individual Retirement Arrangements (IRAs), to contribute to Roth IRAs and to claim the…

  • Final Regulations for Business Meals and Entertainment Deductions Now Available

    The Internal Revenue Service closed out September by announcing the publication of final regulations for the business-related entertainment deductions that were removed from section 274 by the Tax Cuts and Jobs Act. Corporations celebrated the new 21 percent tax rate and small businesses took advantage of the section 199A qualified business deduction, but the TCJA…

  • Final Regulations for Estate and Non-Grantor Trust Deductions, 100 Percent Bonus Depreciation

    Anyone who has prepared tax returns professionally knows that change is the rule, not the exception. When tax laws change, the Internal Revenue Service has the unenviable task of making sense of legislation or executive actions that directly impact the tax industry. Yesterday, the IRS announced the publication of two sets of final regulations that…