Tax & Accounting Update
Payroll Protection Program (PPP) Update
The President Biden’s administration has announced that they would institute two-week period starting on February 24th, during which only businesses with fewer than 20 employees will be able to apply for Payroll Protection Program Loans (PPP). The administration will do the following:
- Change the PPP loan calculation so that self-employed individuals with losses would qualify for the loan
- Eliminate restrictions preventing small business owners with prior nonfraud felony convictions from obtaining relief through the PPP
- Eliminate restrictions preventing small business owners who are delinquent on federal student loan payments from securing a PPP loan
- Allow noncitizen small business owners who are lawful U.S. Residents to use individual taxpayer identification number (ITINs) to apply for relief. For more details click on the link below.
IRS Granted Tax Filling Extension to Texas Residents
Due to winter storm that began February 11, 2021, the IRS has announced that all of the Texas residents now have until June 15, 2021 to file various individual and business tax returns and make tax payments. Changes are as follow:
Individuals April 15, 2021 -> June 15, 2021
Businesses March 15, 2021 - > June 15, 2021
Q1 Estimated payments April 15, 2021 -> June 15, 2021
Q1 Payroll Filling April 30, 2021 -> June 15, 2021
IRA Contributions April 15, 2021 -> June 15, 2021
Tax Topics Simplified
How much can I make before I start losing Social Security?
If you are full retirement age and your only income is social security most likely none of it will be taxable. However, if you are receiving social security and still working part time or full time, not just that you will be paying tax on part of your social security (up to max 85%) you may also start losing some of social security due to having other earned income. For 2020, you will lose $1 in annual benefits for every $3 you earn above the annual limit of $48,600. For more details click on the link below.
Interesting Facts
Can I deduct cost paid for the gun?
I recently got asked if a client would be able to take the deduction for the gun they purchased to keep at their office for security reasons. The answer is NO! The key is that the expense must be ordinary and necessary for the business to deduct it. Firearms may be necessary (protection) but are not ordinary in the regular operations of the business. For some other interesting examples pertaining on deductibility click on the link below.
Let's Talk
For free consultation click on the link to schedule one on one meeting with me over zoom or face to face.
E-mail: dragana@dcmtax.com
Phone: 318-751-5455