Are you an emerging business owner in Philadelphia? Before you pay for your Commercial Business License, you may want to check out this resource:

What is Jump Start Philly? – Business Services

What is Jump Start Philly? – Business Services
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Jump Start Philly is designed to attract new businesses and entrepreneurs that create jobs to Philadelphia by exempting them from paying the Net Profits Tax and the Business Income and Receipts Tax, formerly the Business Privilege Tax, during the first two years of operations. Additionally, fees will be waived for eligible new businesses for a variety of licenses and registrations, including the Commercial Activity License, formerly the Business Privilege License.

All businesses are still required to apply for applicable licenses, but eligible new businesses pay no fee. To qualify for this exemption, your business must meet certain requirements.

For qualifying new businesses, exempt license fees include:

  • Amusement license
  • Food establishment license
  • Sidewalk café license
  • Curb market license
  • Street vendor license
  • Sidewalk sales license
  • Center City vending license
  • Neighborhood vending license
  • Newsstand license
  • Handbill distribution license
  • Weights and measures registration
  • Waste collection and recycling licenses
  • Towing license
  • Auto repair shop license or permit
  • Hazardous chemical license or permit

To qualify as a “New Business” for these exemptions:

  • The business must be a “New Business.” A New Business is a business that was not subject to Philadelphia business taxes at any time during the five Tax Years prior to starting business activity within Philadelphia.
  • The New Business must file with the Department of Revenue a New Business Waiver Application. This application is wrapped into the online process of registering for the Business Income and Receipts Tax, and within the paper application for the Commercial Activity License.

To maintain “New Business” status:

  • The New Business must have at least three full-time employees, who are not family members and who work in Philadelphia at least 60% of the time, by the first 12 months of the business and continuously through the 18-month anniversary of becoming a new business, and
  • Have at least six full-time employees, who are not family members and who work in the City at least 60% of the time from the 18 month anniversary of the business continuously through to the 24-month anniversary of operations.
  • A family member is defined as: a parent, spouse, life partner, child, sibling or relative-in-law

Note: If the Department of Revenue finds that a taxpayer claiming the status of a New Business was not entitled to that status after the fact, the taxpayer shall be liable for any unpaid taxes, interest, fees and charges that would otherwise have been due.

Exclusions, the term “New Business” does not include:

  • A business affiliated with or sharing substantial ownership or control with a business that has filed a business privilege tax return
  • A business created through an ownership change of a business that has filed a business privilege tax return, including, but not limited to:
    • A merger, acquisition or reorganization
    • The transfer of an existing business to a person who maintains the same or substantially similar business
    • And the closing of an existing business and its subsequent reopening as the same or similar business
  • A business formed for the purpose of evading or avoiding payment of taxes or fees
  • A business primarily engaged in holding, selling, leasing, transferring, managing or developing real estate

Contact:

For Business Income and Receipts Tax information –
Department of Revenue:
Phone: 215-686-6600
Email

Tax Update for Unemployment Recipients

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IRS PROVIDES INFORMATION ON 2020 UNEMPLOYMENT BENEFITS

The IRS has provided the following information regarding 2020 unemployment benefits and the 2021 tax filing season:

Unemployment benefits

A record number of Americans applied for unemployment compensation in 2020 due to the pandemic. Anyone who received unemployment benefits will need to report it on their tax returns.

However, the American Rescue Plan, enacted on March 11, 2021, excludes from income up to $10,200 ($20,400 if married filing jointly) of unemployment compensation received in 2020 for taxpayers with modified adjusted gross income under qualifying thresholds. Any amount over $10,200 is still taxable for each person. To determine if payments received for being unemployed are taxable, see the Interactive Tax Assistant on IRS.gov.

For those who have already filed their 2020 tax return and paid taxes on the full amount of unemployment compensation before the law was passed, they should not file an amended return. The IRS will automatically refund money to people who already filed their tax return reporting unemployment compensation.

The IRS will recompute any credits and deductions claimed on the original return. However, if the reduction of income now qualifies a taxpayer for a new credit not claimed on the original return, like the Earned Income Tax Credit (EITC), those taxpayers will need to file an amended tax return, Form 1040x, to claim the new credit. Taxpayers can see if they qualify for the EITC at IRS.gov.

Unemployment benefit recipients should have received a Form 1099-G, Certain Government Payments, from the agency paying the benefits. The form will show the amount of unemployment compensation they received in 2020 in Box 1, and any federal income tax withheld in Box 4.

Some states do not mail Form 1099-Gs. Taxpayers may need to get the electronic version from their state’s website.

Taxpayers who received an incorrect Form 1099-G for unemployment benefits they did not receive should contact the issuing state agency to request a revised Form 1099-G showing they did not receive these benefits.

Taxpayers who are unable to obtain a timely, corrected form from their state should still file an accurate tax return, reporting only the income they received. A corrected Form 1099-G showing zero unemployment benefits in cases of identity theft will help taxpayers avoid an unexpected federal tax bill for unreported income.

Additionally, if taxpayers are concerned that their personal information has been stolen and they want to protect their identity when filing their federal tax return, they can request an Identity Protection Pin (IP PIN) from the IRS.

Generally, by law, unemployment compensation must be included as income. Taxable benefits include any of the special unemployment compensation authorized under the Coronavirus Aid, Relief, and Economic Security (CARES) Act, enacted in 2020.

If a taxpayer didn’t report income from gig work or unemployment compensation on a return, a corrected return can be filed using Form 1040-X, Amended U.S. Individual Income Tax Return. Form 1040-X can be filed electronically.

Taxpayers who owe but can’t pay in full always have options to seek help through payment plans and other tools from IRS.gov/payments.

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makethemostofyourmembership.gif

IRS PROVIDES INFORMATION ON 2020 UNEMPLOYMENT BENEFITS

Mary:

The IRS has provided the following information regarding 2020 unemployment benefits and the 2021 tax filing season:

Unemployment benefits

A record number of Americans applied for unemployment compensation in 2020 due to the pandemic. Anyone who received unemployment benefits will need to report it on their tax returns.

However, the American Rescue Plan, enacted on March 11, 2021, excludes from income up to $10,200 ($20,400 if married filing jointly) of unemployment compensation received in 2020 for taxpayers with modified adjusted gross income under qualifying thresholds. Any amount over $10,200 is still taxable for each person. To determine if payments received for being unemployed are taxable, see the Interactive Tax Assistant on IRS.gov.

For those who have already filed their 2020 tax return and paid taxes on the full amount of unemployment compensation before the law was passed, they should not file an amended return. The IRS will automatically refund money to people who already filed their tax return reporting unemployment compensation.

The IRS will recompute any credits and deductions claimed on the original return. However, if the reduction of income now qualifies a taxpayer for a new credit not claimed on the original return, like the Earned Income Tax Credit (EITC), those taxpayers will need to file an amended tax return, Form 1040x, to claim the new credit. Taxpayers can see if they qualify for the EITC at IRS.gov.

Unemployment benefit recipients should have received a Form 1099-G, Certain Government Payments, from the agency paying the benefits. The form will show the amount of unemployment compensation they received in 2020 in Box 1, and any federal income tax withheld in Box 4.

Some states do not mail Form 1099-Gs. Taxpayers may need to get the electronic version from their state’s website.

Taxpayers who received an incorrect Form 1099-G for unemployment benefits they did not receive should contact the issuing state agency to request a revised Form 1099-G showing they did not receive these benefits.

Taxpayers who are unable to obtain a timely, corrected form from their state should still file an accurate tax return, reporting only the income they received. A corrected Form 1099-G showing zero unemployment benefits in cases of identity theft will help taxpayers avoid an unexpected federal tax bill for unreported income.

Additionally, if taxpayers are concerned that their personal information has been stolen and they want to protect their identity when filing their federal tax return, they can request an Identity Protection Pin (IP PIN) from the IRS.

Generally, by law, unemployment compensation must be included as income. Taxable benefits include any of the special unemployment compensation authorized under the Coronavirus Aid, Relief, and Economic Security (CARES) Act, enacted in 2020.

If a taxpayer didn’t report income from gig work or unemployment compensation on a return, a corrected return can be filed using Form 1040-X, Amended U.S. Individual Income Tax Return. Form 1040-X can be filed electronically.

Taxpayers who owe but can’t pay in full always have options to seek help through payment plans and other tools from IRS.gov/payments.

Of course if you have questions or need to file your taxes, contact our office by emailing support@mtaustinandassoc.com

Many Happy Returns!

Freedom from complicated PPP loan forgiveness applications if your loan was <=$50K

The U.S. Small Business Administration, in consultation with Treasury, unveiled late in the evening of October 8 a simpler loan forgiveness application for Paycheck Protection Program (PPP) loans of $50,000 or less.
“The PPP has provided 5.2 million loans worth $525 billion to American small businesses, providing critical economic relief and supporting more than 51 million jobs,” Treasury Secretary Steven Mnuchin said in an October 8 press release. “Today’s action streamlines the forgiveness process for PPP borrowers with loans of $50,000 or less and thousands of PPP lenders who worked around the clock to process loans quickly,” he added.  “We are committed to making the PPP forgiveness process as simple as possible while also protecting against fraud and misuse of funds.  We continue to favor additional legislation to further simplify the forgiveness process.” 

Notably, instructions for SBA Form 3608S state that the new application requires fewer calculations and less documentation for eligible borrowers. “Borrowers that use SBA Form 3508S are exempt from reductions in loan forgiveness amounts based on reductions in full-time equivalent (FTE) employees or in salaries or wages,” the instructions state. Additionally, SBA Form 3508S does not require borrowers to show the calculations used to determine the loan forgiveness amount, though SBA may request such information and related documents as part of its loan review process.
The PPP Loan Forgiveness Application Form 3508S can be accessed online along with instructions.  Download Form 3508s here.

If you need assistance with your PPP loan forgiveness application, don’t hesitate to contact our office by email:

support@mtaustinandassoc.com

Stay well!

Money Management Seminar July 28th!

What good is a budget if you have not first uncovered the reasons behind your frustration and struggle with savings and spending?

Do you want to understand and change your money mindset?

Join M Tonita Austin, the Wealth Activator for a two part money management series at an intimate and judgement-free environment at our Media office.

ONLY 10 seats for this intimate, hands-on event.

In the first session Tonita will teach you holistic tools and rituals, meditations and through journal writing help you discover your money mindset. The goal is to help you understand personal blockages to abundance and wealth in all areas of your life.

The second session, two weeks later will provide you with practical tips and tools for money management and the opportunity to get answers to questions about your personal finances. In the two hour session you will:

  • learn new savings and spending habits
  • secret tips to balancing your budget and bank account,
  • understanding and restoring your credit
  • learn how to calculate your net worth
  • feel empowered and leave with tools to help you get on the road to financial stability and wellness
  • gain confidence and peace of mind around money


All attendees will receive a workbook for the second session and there is an option to pay in two installments. This is the only time this workshop will be offered at this price point.

I hope I get the opportunity to support you! 💙

Sign me up!

July Wealth Activator Workshops!

Happy July! MT Austin and Associates, LLC is offering a series of business and personal financial wellness workshops this month. The first is Budgets and Projections. As a business owner or Director of a non profit now is the time to start planning for a sustainable future. This is the only time this workshop will be offered at this price.

Please check out our page or calendar for more details

https://scheduletimewithMTAA.as.me/BBP

The first step to financial freedom!

At the Restoration Station we believe the first step to financial freedom is creating a budget. When you are able to see your income and spending habits you can make better choices and begin to build wealth.

We’ve created for you, a three step video series and an easy to follow worksheet to not only walk you through the steps but to also help you move past the fear and uncertainty that often arises when thinking about your finances.

Sign up for our affordable online webinar TODAY and get on track with your spending!

SIGN ME UP!

Introducing: The Badass Business Owners Bootcamp – May 19, 2019

Join me and fellow business owners in releasing the financial frustration of owning your own business. We will gather in an intimate setting, release judgement and fear and be empowered and educated! Come as you are and I will share my 18 years of CEO wisdom to help you with:
Confidence
Better choices
Smart decision making
Making a profit in your business

We respect the need to budget so we are announcing in plenty of time to save or request a payment plan.
Sunday May 19th will be a special day of wealth, wisdom, and empowerment. here’s the link for more information and to sign up.

I hope to see you there!

bit.ly/bbobootcamp

Find the event on Facebook:

https://www.facebook.com/events/792969611059648/?ti=as

No stress online budgeting webinar!

Get on track with your spending this year. Our no-stress three part household budgeting webinar is only $30 this month. Sign up now, lock in this introductory price and take it at your leisure .💙 👇🏿

SIGN UP HERE