Tax & Accounting Update
Hurricane Ida - Extended deadline to February 15, 2022
Victims of Hurricane Ida in six states now have till February 15, 2022, to file 2021 individual and business tax returns. This extension to file is granted only for part or all of six qualifying states. The relief covers entire state of Louisiana and Mississippi, as well as parts of New Jersey, Connecticut, New York, and Pennsylvania. The February 15 extended deadline also applies to quarterly estimated income tax payments that were due on September 15, 2021, and January 18, 2022. For more details click on the link below.
Is Build Back Better legislation dead?
Yes, it is dead at least in its current form. What will happen if legislation does not pass? I am going to list just some of provisions.
- Child Tax Credit will revert to the rules prior to 2021: $2,000 per child, no monthly payments and limited refundability,
- SALT deduction cap will stay at $10,000 instead of being capped at $80,000 through 2031,
- In jeopardy will be increased funding for IRS ($80 billion over 10 years),
- High income saver will still be able to do back door Roth IRA conversions.
News you can use
Student Loan Payments extended through May 1, 2022
The Biden administration has announced that student loan relief was extended through May 1, 2022. The payment pause on student loans has been in effect since March 2020. Since then, the interest has been suspended on all federal student loans. The government has also put on hold its enforcement activity against defaulted student loan borrowers. Based on recent polling, 89% of loan borrowers who are employed full time are still not financially secure to restart making payments. The average monthly payment per loan borrower in the United States is $400. Outstanding student loan debt in the U.S. has s surpassed $1.7 trillion. For a full article please click on the link below.
Happy New Year!
Internal Revenue Service still has not announced the exact date when they will start accepting income tax returns for 2021, however various sources say that we could expect e-filing to start sometimes between January 20th and 31st. If any of you need help or know someone who is looking to change a CPA, I would appreciate your referral. Feel free to send me an e-mail with the name and contact information for the person who may be interested, and I will reach out to them to see if we would be a good fit.
Here is the list of some of the services that I can provide: * Tax preparation (business & personal) * Bookkeeping services * Sales tax services * Payroll services * Financial statements preparation * Advisory and tax planning services.
I work closely with my husband, Douglas, who is financial planner and can help you with your financial planning and investment needs. One stop for all your accounting and financial needs. The benefit of working with us is that we can see the whole picture of your tax and financial personal and/or business health and can advise you accordingly. We stay up to date on laws and regulations that affect our clients.
It is up to you, what New Year resolutions you will make, but if you are serious about your money we are here to help.
Douglas & Dragana Moran
e-mail: dragana@dcmtax.com
e-mail: douglas@dmfinancialgroup.com