Tax & Accounting Update
Meals are 100% deductible for 2021-2022
Business owners can usually deduct 50% of cost spent on meals that are business related. Due to the Coronavirus Pandemic, the government has allowed meals to be 100% deductible (rather than the current 50%) for 2021-2022 as long as the expense is for food or beverage provided by a restaurant. Regardless of percentage of deduction, I advise that you always keep receipts in case you get audited. For more details as to what other provisions appear in year-end coronavirus relief bill, please visit:
Are unemployment benefits that I received in 2020 taxable?
The answer is, it depends! However, if we are talking about Federal Pandemic Unemployment Compensation provided under the Coronavirus Aid, Relief and Economic Security (CARES) Act of 2020, then yes, those payments are taxable. You will receive (from the state) a Form 1099-G Certain Government Payments that will show the amount of unemployment compensation paid during the year. Your tax preparer will need this form in order to prepare your 2020 tax return.
Info about Economic Impact Payment
The Government has already started sending out the second stimulus payments. A maximum of $600 per individual with earnings up to $75,000, and $1,200 for married couples with an earning of up to $150,000, plus $600 for each child under the age of 17. If you still did not receive your stimulus money and know that you qualify click on the link below to find out when you can expect to receive your payment.
Who qualifies for second PPP Loan?
If your business had a decrease of 25% in sales during 2020 in comparison to same quarter of 2019, your business may qualify for the second round of PPP loans. This week we can expect more information on when funds will start to become available. For more details click on the link below
Tax Topics Simplified
Will I pay taxes on social security income?
I often get questions from clients asking if their social security will be taxable if they continue working after they start drawing on their social security. The answer is, It depends, you can pay taxes on a maximum of 85% of your social security income. The percentage on which you will pay tax depends on how much other income (combined income in case of married couples) an individual will have for the year. Single person can have up to $25,000 and married couples can have $32,000 before part of social security starts being taxable. For more details visit
Weather you are a new or seasoned business owner, you will probably need some sort of bookkeeping or tax services. My firm is offering a free diagnostic review of your QuickBooks. We will review your books and provide a detailed report of our findings. If clean up is needed, you will automatically qualify for 25% off the cost of cleanup if you choose us for our monthly bookkeeping needs. E-mail or give me a call to schedule your review. dragana@dcmtax.com.com or 318-751-5455.