News you can use
Automatic extension for Louisiana Residents
Due to the winter storm that Louisiana residents have experienced in February of 2021 the Internal Revenue Service has announced on March 10, 2021 that businesses and individuals have been granted automatic extension for filling their personal and business tax returns as well as extension to meet certain other deadlines. The new deadline is June 15, 2021. For more information click on the link below.
$10,200 of Unemployment benefits are not taxable
It is a great news for those of you who received an unemployment benefit. The American Rescue Plan Act of 2021 which President Joe Biden signed last Thursday waives federal tax on up to $10,200 of unemployment benefits for single adults who earned less than $150,000 a year in 2020 (the celling is $20,400 for married couples). If you have already filed your tax return before the $1.9 trillion COVID relief measure became law you should wait to file an amended returns until the IRS issues additional guidelines. For more information click on the link below.
The third stimulus is on its way
President Biden has signed the bill on March 10, 2021 approving $1.9 trillion dollars to be distributed into the economy in hope to help businesses and families. Stimulus payments will be sent out in the amount of $1,400 per individual (including dependents) who make less then $75,000, head of household $112,500 or married filling jointly $150,000. This stimulus is different from the prior since there is no phasing out or getting partial stimulus payments. Also, this time any depended, regardless of age will be getting $1,400.
The clock is ticking
The clock is ticking for the second round of Payroll Protection Program (PPP) funds. The PPP loan application will be open till March 31, 2021. To qualify for the second round of PPP you must have 25% decrease in revenue for at least one of the quarters in 2020 in comparison to the same quarter in 2019. You must have payroll or be self employed to be able to obtain funds. Those who do not qualify for the second round of PPP, I strongly encourage you to apply for EIDL SBA loan. The terms of the loan are 30 years with 3.75% with first payment due a year from the date loan is received.
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E-mail: dragana@dcmtax.com
Phone:318-751-5455