When the American Rescue Plan Act of 2021 was signed into law on March 11, 2021, it included a provision that allows taxpayers that earned less than $150,000 in modified adjusted gross income to exclude up to $10,200 of unemployment compensation claimed in 2020 on their 2020 individual tax returns (up to $20,400 for married couples filing jointly if both received benefits).
By Klatzkin Tax Team
On March 12, 2021, President Biden signed the American Rescue Plan (ARP) Act of 2021. The fourth piece of COVID-19 relief legislation passed since the pandemic started, the ARP provides over $1.9T in relief for individuals, families, and businesses.
The fallout from the COVID-19 pandemic created by forced business closures and other government orders continues to challenge New Jersey businesses. Despite the drop in new cases, partially due to vaccination efforts, many have just started the journey back to profitability.
On March 17, 2021, the IRS announced that the federal individual tax filing due date would be extended. Below is a brief outline of the new federal tax filing due date and how the state governments in our area are responding.
The $1.9T relief legislation provides several provisions to benefit individuals. These include economic stimulus payments, extended unemployment, new subsidies, and increased tax savings through the expanded child tax credit, and more. While the benefit depends on meeting certain income thresholds, it is expected families will now receive the financial boost to carry them to the end of the pandemic.
By Klatzkin Tax Team
As vaccinations for COVID-19 continue to be administered, businesses throughout New Jersey and Pennsylvania are excited to see certain government orders slowly rolling back. While this is certainly a promising step towards returning to “normal,” the reality is the damage suffered over the last year is almost impossible. That is why the recently enacted the American Rescue Plan Act of 2021 (ARPA), signed by President Biden on March 11, 2021, provides over $1.9T in relief for struggling individuals, families, and businesses.
By Klatzkin Tax Team
President Biden signed the American Rescue Plan (ARP) Act of 2021, the newest economic relief package into law, on Thursday, March 11, 2021. The 242 page, $1.9T bill brings a surge of new stimulus funds and legislation to revive the economy after a slow recovery due to the COVID-19 pandemic, which happened a year ago this month.
Angela Lawrence, Quality Control Coordinator at Klatzkin, contributed to this post. With the calendar turning to January 2021, new standards came into effect that impact taxpayers who use their vehicles for specific purposes or contribute to retirement accounts. Let’s look at changes related to standard mileage rates and retirement accounts in 2021, as announced by […]
By ISHAAN ANAND
The arrival of the COVID-19 pandemic last March sharply impacted both businesses and individuals as significant changes to everyday life were mandated to limit the virus’s spread. The combination of stay-at-home orders and forced business closures left many reeling from the almost overnight shifts. Given the magnitude of the situation, Congress passed the Coronavirus Aid, Relief and Economic Security (CARES) Act to provide comprehensive economic relief.
Many business owners are perplexed by determining whether an individual is acting as an employee or independent contractor. The determination is challenging because there are often confusing federal and state guidelines and because it seems they change regularly. Many are surprised to learn that although an individual may appear to be working in an independent contractor’s role, they are considered an employee by the IRS and state law.
