The CPA Business Blog
MORE CALIFORNIA LEGISLATION UPDATES – SB-113 IS GOOD NEWS!
While we provided you with California tax legislation updates over the last year, we did not usually get to say that it was good news. Well, that changed yesterday when Governor Newsom signed SB-113, which made positive tax related changes, some of which are retroactive to the 2021 tax year
RE: IRS SENDING LETTERS ON ADVANCED CHILD TAX CREDIT AND
The IRS announced that it will be issuing two separate information letters to taxpayers this month (January 2022). Please include these letters, if applicable, with your 2021 individual tax information. These payments need to be reconciled on the 2021 individual income tax return. You may send them as soon as received or provide them with…
RE: CALIFORNIA PPP FORGIVENESS NON-CONFORMITY. . . AGAIN
If you received either a first or second round PPP loan after March 31, 2021, the forgiveness of that loan will be taxable on your California income tax return. Depending on the size of the loan, you may need to pay additional amounts for your 2021 California estimated taxes to account for this income increase.
YEAR-END TAX PLANNING FOR INDIVIDUALS
As we approach year-end, it is time to think about steps you may take to help reduce your 2021 tax bill. In what appears to be the new normal, 2021 is shaping up to be a year with plenty of tax law changes. COVID-related disaster relief, signed into law last December, made several favorable (mostly…
CALIFORNIA PASSTHROUGH ENTITY TAX
California recently passed AB 150, which included a provision to establish an elective passthrough entity (PTE) tax. This passthrough entity tax is intended to provide California taxpayers a method to structure their state income tax compliance in a way which provides some relief from the current federal limits on individual state and local tax deductions.
ADVANCE CHILD TAX CREDIT PAYMENTS
You may recently have received a letter from the IRS stating that on July 15, 2021 the IRS will begin issuing advance Child Tax Credit payments for those with qualifying dependents. As you prepare to receive these payments, it is important to understand a few issues.
UPDATE ON CALIFORNIA PPP LOAN FORGIVENESS
April 23, 2021 - California Bill AB-80 was recently amended and includes some significant changes as it pertains to PPP Loan Forgiveness for California Tax purposes.
RE: HOW DO ECONOMIC IMPACT PAYMENTS (i.e. STIMULUS CHECKS) IMPACT
While we are extremely grateful for the economic impact payments (i.e. stimulus checks) that have been issued, these payments cause complications in the preparation of individual tax returns. If you have any questions or concerns, please do not hesitate to contact us.
Do Estimated Tax Payments Increase the Chance of Receiving a
To Our Valued Clients and Friends, In recent years we have noticed an uptick in IRS and FTB notices. The #1 cause of these notices are incorrect estimated tax payment amounts being reported on individual taxpayer returns.