IRS Tag
On May 10, 2021, the Internal Revenue Service (IRS) released 16 Apr IRS FAQs on Premium Tax Credit Changes Due to the ARPA
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On April 9, 2021, the Internal Revenue Service (IRS) released a fact sheet containing FAQs addressing changes for taxpayers who received advance payments of the 2020 premium tax credit (PTC) due to the American Rescue Plan Act (ARPA).
Understanding how recent legislative changes for the PTC affect individuals, families and their 2020 tax return is important. The IRS developed this fact sheet to explain what taxpayers need to know about claiming a net premium tax credit (net PTC) and what to do if they have excess advance payments of the premium tax credit (APTC) for tax year 2020.
16 Apr PPE Expenses Are Reimbursable Under Health FSAs, HRAs and HSAs
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During the COVID-19 pandemic, you may have purchased masks or personal protective equipment (PPE) for the purpose of preventing the spread of the coronavirus (COVID-19).
Now, according to a recent announcement from the Internal Revenue Service (IRS), those PPE purchases may be deductible from your income for tax purposes and eligible to be paid or reimbursed under certain savings accounts.
The recent IRS guidance provided that amounts paid by individuals for PPE—including masks, hand sanitizer and sanitizing wipes used for the primary purpose of preventing the spread of COVID-19—are deductible medical expenses. Therefore, the amount you paid for the PPE that is not compensated for by insurance may be deductible as long as your total medical expenses are more than 7.5% of your adjusted gross income (AGI).
09 Apr IRS Publishes Guidance for 2021 Employee Retention Credit (Q1/Q2)
[wpseo_breadcrumb] On April 2, 2021, the Internal Revenue Service (IRS) published Notice 2021-23 to provide guidance for employers claiming the employee retention credit (ERC) for the first two quarters of 2021.
The ERC was originally created by the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), and has since been modified and extended by other laws—most recently, the American Rescue Plan Act (ARPA) on March 11, 2021.
02 Apr IRS Extends Time to Make IRA, HSA Contributions and File Forms 1040
[wpseo_breadcrumb] On March 29, 2021, the Internal Revenue Service issued Notice 2021-21, which extends tax deadlines for filing Form 1040 series returns and other deadlines to May 17, 2021.
The Notice, issued as a result of the ongoing COVID-19 pandemic, follows a prior IRS extension (also to May 17, 2021) of the federal income tax filing due date for individuals for the 2020 tax year.
The Form 1040 series includes Form 1040, Form 1040-SR, Form 1040-NR, Form 1040-PR, and Form 1040-SS. Businesses and other types of taxpayers that file federal income tax returns on forms outside of the Form 1040 series are not eligible for the extension. In addition, the Notice does not alter the April 15, 2021 deadline for estimated tax payments.
12 Mar IRS Issues Guidance on Employee Retention Credit for 2020
On March 1, 2021, the Internal Revenue Service (IRS) issued Notice 2021-20 to provide guidance for employers claiming the 2020 employer retention tax credit.
This tax credit was created by the Coronavirus Aid, Relief and Economic Security Act (CARES Act) to encourage employers to keep employees on their payroll, despite experiencing economic hardships related to COVID-19.
Employer Eligibility
Employers can claim the tax credit if they:30 Dec Final Regulations Issued for Transportation Fringe Benefits
On Dec. 16, 2020, The U.S. Treasury Department and Internal Revenue Service published final regulations on the deduction for qualified transportation fringe (QTF) expenses, following changes made by the Tax Cuts and Jobs Act (TCJA).
The final regulations became effective upon publication and replace proposed regulations and interim guidance provided in IRS Notice 2018-99.
30 Dec IRS Announces 2021 Standard Mileage Rates
On Dec. 22, 2020, the IRS issued the 2021 optional standard mileage rates, which are used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes.
The 2021 standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be:
18 Dec IRS Adds, Updates FAQs on FFCRA Tax Credits
The IRS has added or updated more than 80 answers to questions in its series of FAQs on “COVID-19-Related Tax Credits for Required Paid Leave Provided by Small and Midsize Businesses.”
The changes affect questions in all 13 of the subtopics covered by the FAQs.
Refundable tax credits are available to businesses for employee paid leave taken under the federal Families First Coronavirus Response Act (FFCRA), enacted in March 2020 and effective through Dec. 31, 2020.
30 Oct No Change in 2021 Limits for Qualified Transportation Benefits
The IRS has released Revenue Procedure 2020-45, which includes cost-of-living adjustments for employee qualified transportation fringe benefits for the 2021 taxable year, along with annually adjusted numbers for 2021 for a number of other tax provisions.
The combined monthly limit for transportation in a commuter highway vehicle and a transit pass remains unchanged from 2020 at $270. The monthly limit in 2021 for qualified parking is also unchanged from 2020, also at $270.
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