MT Austin and Associates just learned that we have been chosen as “One of the Best Accountants in Delaware County”. We want to thank all for your continued support!
Dear Valued Subscriber:
If you are a tax client, please remember to upload your tax information by the due date to avoid the $100 rush fee effective October 1.
We also wanted to let you know about the COVID penalty relief being offered to certain tax filers for 2020 and 2021 tax years. You can read the press release on the IRS website to see if you qualify to participate by the September 30th deadline.
Since May, we have been celebrating freedom – those who died for certain freedoms (Memorial Day); the freedom of the last enslaved Africans in Texas (Juneteenth) and US’s freedom from Great Britain (4th of July). On July 18th, we celebrate a man who epitomizes the fight for freedom on his birthday, Nelson Mandela. The United Nations approved the celebration of Nelson Mandela International Day in 2010. The holiday is celebrated by encouraging “each person to dedicate 67 minutes of their time to collectively make a difference through volunteering, donations and community service”.
As our community service, MT Austin and Associates will be live on our Instagram page, for 67 minutes providing a FREE information session on personal money management and answering any of your personal money management questions. Sole proprietors are welcome to join and ask any business-related questions as well. The live will begin at 4:30 EST and will be your ONLY opportunity to receive FREE advice from our CEO. Feel free to share this invitation with friends and if you haven’t already, like our page and set your Instagram to receive notifications for all of our live videos.
We also wanted to share a couple of additional financial resources:
● List of funding sources – Includes both local and national sources available to small business owners. Please note the deadlines for filing and contact the sources for more information about applying for these grants.
● Restitution For anyone who may have been defrauded in a 2004-2017 Western Union scam, the deadline has been extended to recoup funds through August 31, 2022. Learn more at the Federal Trade Commission website.
Don’t forget that you can engage MT Austin and Associates to assist you with your mid-year financial checkup by signing up for a one-on-one one-hour “Sleep Better at Night” session. During the session, you will have an opportunity to discuss your current financial situation and set goals for the remainder of the year. Our summer calendar is filling up so please make your appointment today. (Our offices will be closed for Summer Break the first week of August.)
For those who still need to file their 2021 taxes, don’t forget to upload your documents to your secure Verifyle by September 30th. If you still have questions about tax issues prior to providing your documents , we suggest a 30-minutes “Sleep Better at Night” session. NOTE: If you sign up for a session you will receive a 10% discount on your 2021 tax preparation.
Please continue to keep up to date on all of our services/program offerings by following us on LinkedIn, Facebook and Instagram. Also, keep your feedback coming about our new branding through our @thewealthactivator Instagram page.
Let’s celebrate Nelson Mandela through service to others and our own financial independence!
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.
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.
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.
Let today be your first step towards financial freedom! Announcing our FIRST Webinar for individuals offered by our financialliteracy division, The Restoration Station on July 22nd.
We understand you’re as busy as we are so we’re delivering the online lesson in three 25 minute sessions. Easily digestible, stepbystep instructions on how to set up your own household budget.
You will receive a separate electronic worksheet for you and any children in your household to apply the tools you will learn in the class. You will also be invited to the follow up Q&A on #Facebook and #instagram #live!
Sign up today to secure your spot!⤵️
bit.ly/housebudget101
..
This is the only time this class will be offered at the introductory price. Sign up and let us help you get on the train to financial freedom. I’ll see you at the station!💙 #thekeytowealth #firststeps to #financialhealth
Listen to the podcast of my interview with C Thomas Gambrell II of Birth A New Business where I share my secret to sustaining a home based business as a single parent! Click below to hear it. I’d love your comments and feedback. Did you hear something that was useful to you as an entrepreneur? ⤵️
Welcome to Financial Freedom Press! It’s tax season and we will be sharing valuable information directly from the IRS website that will help you in filing your federal tax return. As always, MT Austin and Associates would be honored to provide your individual or small business, non-profit tax preparation services. We offer competitive pricing and personal attention. You can schedule a 15 minute consultation at your convenience by accessing our calendar HERE —> CALENDAR
Know these Facts Before Deducting a Charitable Donation
If taxpayers gave money or goods to a charity in 2016, they may be able to claim a deduction on their federal tax return. Taxpayers can use the Interactive Tax Assistant tool, Can I Deduct my Charitable Contributions?, to help determine if their charitable contributions are deductible.
Here are some important facts about charitable donations:
Qualified Charities. Taxpayers must donate to a qualified charity. Gifts to individuals, political organizations or candidates are not deductible. To check the status of a charity, use the IRS Select Check tool.
Itemize Deductions. To deduct charitable contributions, taxpayers must file Form 1040 and itemize deductions. File Schedule A, Itemized Deductions, with a federal tax return.
Benefit in Return. If taxpayers get something in return for their donation, they may have to reduce their deduction. Taxpayers can only deduct the amount that exceeds the fair market value of the benefit received. Examples of benefits include merchandise, meals, tickets to events or other goods and services.
Type of Donation. If taxpayers give property instead of cash, their deduction amount is normally limited to the item’s fair market value. Fair market value is generally the price they would get if the property sold on the open market. If they donate used clothing and household items, those items generally must be in good condition or better. Special rules apply to cars, boats and other types of property donations.
Non-cash Charitable Contributions. File Form 8283, Non-cash Charitable Contributions, for all non-cash gifts totaling more than $500 for the year. Complete section-A for non-cash property contributions worth $5,000 or less. Complete section-B for non-cash property contributions more than $5,000 and include a qualified appraisal to the return. Taxpayers may be able to prepare and e-file their tax return for free using IRS Free File. The type of records they must keep depends on the amount and type of their donation. To learn more about what records to keep, see Publication 526, Charitable Contributions.
Donations of $250 or More. If taxpayers donated cash or goods of $250 or more, they must have a written statement from the charity. It must show the amount of the donation and a description of any property given. It must also say whether they received any goods or services in exchange for the gift.
Taxpayers should keep a copy of their tax return. Beginning in 2017, taxpayers using a software product for the first time may need their Adjusted Gross Income (AGI) amount from their prior-year tax return to verify their identity. Taxpayers can learn more about how to verify their identity and electronically sign tax returns at Validating Your Electronically Filed Tax Return.
Listen to the podcast of my interview with C Thomas Gambrell II of Birth A New Business where I share my secret to sustaining a home based business as a single parent! Click below to hear it. I’d love your comments and feedback. Did you hear something that was useful to you as an entrepreneur? ⤵️
Financial Freedom Press 