Although the tax reform passed late in 2017 seemed to change everything, it actually had little effect on the earned income tax credit alone. But the credit is still complicated, and taxpayers should understand how it works.
If you're serious about paying off your mortgage quickly, realize that every dollar you add to your regular payment each month puts a bigger dent in your principal balance — and you don't have to double-down to make a difference. Adding even one extra payment each year knocks years off your mortgage.
The Employee Retention Credit has been designed to encourage businesses to keep employees on their payroll. The refundable tax credit is 50% of up to $10,000 in wages paid by an eligible employer whose business has been financially impacted by the coronavirus and quarantine.
The Paycheck Protection Program, part of the CARES Act, grants loans to businesses under generous terms. Even better, the government will forgive your loan if you meet certain conditions.
Keep in mind, however, that regulations and future adjustments can tweak certain provisions and that there are more details that a qualified professional can help you interpret.
Every taxpayer ought to be aware that a Taxpayer Bill of Rights exists. It may come as little solace if you're holding an audit letter, but perhaps this is the time to know your rights. Yes, taxpayers have rights when dealing with the IRS.
Be on the lookout for a surge of calls and emails from scammers trying to cheat you with promises of financial relief, just when you may be feeling desperate. Tax-related fraud and identity theft scammers are out and about looking to make a quick — and crooked — buck.
The COVID-19 pandemic is affecting all aspects of finances, including retirement savings. The CARES Act contains provisions affecting these plans that will remain in effect for 2020. They include the following:
The first thing you may notice about the new Form W-4 is the title. It's no longer the "Employee's Withholding Allowance Certificate" — the new title is the "Employee's Withholding Certificate" because withholding allowances are no longer used to calculate federal income tax withholding. So how does it work?
Among the many relief provisions passed by Congress in recent days are loans focused on small businesses. This isn't entirely new to the SBA, which has long been in the loan business, but recently passed laws supercharged the offerings. As with so many government programs, however, the devil is in the details. Below are some specifics, and you should review the details carefully before proceeding.
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