February 15, 2021
Six Myths Surrounding The 2021 Employee Retention Tax Credit - Lynn Mucenski Keck, Forbes. “Businesses around the country have been slow to evaluate, or quick to assume they are ineligible for, the 2021 Employee Retention Credit (“ERC”). The result: a significant amount of cash is still being paid to the Federal government when it could remain with companies that need it.”
“In 2021 the maximum amount of ERC is $7,000 per employee, per quarter. Therefore, if a company can identify $10,000 of qualified wages from each employee in the first and second quarter in 2021, they are looking at a maximum ERC of $14,000 per employee. This means that a 10-person business could get a maximum ERC of $140,000 and a 300-person company could generate a $4,200,000 ERC. You get the idea. Big dollars are available for this credit and businesses are missing the opportunity due to lack of understanding, or possibly just COVID burn out.”
Navigating new tax legislation can be a daunting task. Contact our Retention Credit Team today for help.
Massachusetts DOR Issues Tax Return Guidance for Telecommuters – Carolina Vargas, Tax Notes. “The February 12 draft directive says nonresidents who normally work in Massachusetts but have been telecommuting from a different location because of the pandemic will be required to pay tax on their Massachusetts-source income.”
“The draft directive instructs nonresidents who telecommute to calculate “the amount of their wages that is Massachusetts source income based on either the percentage of their work days spent in Massachusetts during the period January 1 through February 29, 2020, or the apportionment percentage properly used to determine the portion of their wages from that employer that constituted Massachusetts source income as reported on their 2019 Massachusetts personal income tax return.”
Congressmen Propose 30 Percent Income Tax Credit For The Purchase Of An Electric Bike – Tony Nitti, Forbes. “Jimmy Panetta (D-CA) and Earl Blumenauer (D-OR), both members of the House of Representatives, recently introduced the Electric Bicycle Incentive Kickstart for the Environment (E-BIKE) Act, which among other proposals, would provide purchasers of e-bikes an income tax credit equal to 30% of the cost of the bike, up to a maximum credit of $1,500.”
The Case for a Floor, Not a Cap, on SALT Deductions – Martin Sullivan, Tax Notes($). “The proper income tax treatment of state and local taxes revolves entirely around whether the outlays of state and local governments are consumption by the taxpayers. The current debate — in which left-leaning groups focus on progressivity and right-leaning groups focus on fairness across states — is a distraction from the real issue. More on that later.”
IRS Warns Of Delays And Challenging 2021 Tax Season: 10 Tax Tips For Filing Your 2020 Tax Return – Ashlea Ebeling, Forbes. “The Internal Revenue Service says taxpayers should expect limited face-to-face operations, heavy call volume and paper-processing delays as it opens today for tax season 2021, accepting tax returns for tax year 2020”
IRS Warns of Email Phishing Scam Aimed at Tax Professionals – Ed Zollars, Current Federal Tax Developments. “The IRS has issued a warning to tax professionals that the agency is aware of a phishing scam that is aimed at obtaining various personal information.”
Biden's proposed Child Tax Credit increase in COVID relief plan gets support … and questions – Kay Bell, Don’t Mess With Taxes. “if the Biden Administration and some in Congress have their way, children could be worth even more in the proposed next round of COVID-19 relief.”
Judge rules man can keep his ‘FKGAS’ vanity plate, finds state law unconstitutional – Jack Perry, The Providence Journal. “The DMV initially saw no problem with the plate and gave it to Carroll, but when the agency realized the plate could suggest a four-letter word popular in rush-hour traffic, the DMV ordered Carroll to turn in his plate or have his registration canceled.”
This is a roundup of tax news and opinion. Any opinions expressed or implied are those of the author and not necessarily those of Eide Bailly. Opinions found in linked items are those of the authors of the linked item, not of your bloggers or of Eide Bailly. “$” means link may be behind a paywall. Items here do not constitute tax advice.