Posts by Caras & Shulman

Identity Protection PIN Available To All Taxpayers

Identity Protection PIN Available To All Taxpayers

What You Need to Know Starting in January 2021, the IRS Identity Protection PIN Opt-In Program will be expanded to all taxpayers who can properly verify their identity. Previously, IP PINs were only available to identity theft victims. What is an Identity Protection PIN? An identity protection personal identification number (IP PIN) is a six-digit number assigned to eligible taxpayers to help prevent their Social Security number from being used to file fraudulent federal income tax returns....

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Important Tax Changes for Individuals and Businesses

Important Tax Changes for Individuals and Businesses

What You Need to Know About Changes to Your Taxes in 2021 Every year, it's a sure bet that there will be changes to current tax law and this year is no different. From standard deductions to health savings accounts and tax rate schedules, here's a checklist of tax changes to help you plan the year ahead. Individuals In 2021, a number of tax provisions are affected by inflation adjustments, including Health Savings Accounts, retirement contribution limits, and the foreign earned income...

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Applying for Tax-Exempt Status as a Nonprofit

Applying for Tax-Exempt Status as a Nonprofit

What You Should Know When Starting a Nonprofit Organization If you're thinking of starting a nonprofit organization, there are a few things you should know before you get started. First, is understanding how nonprofits work under state and federal law. For example, two things you should understand is that state law governs nonprofit status. Nonprofit status is determined by an organization's articles of incorporation or trust documents while federal law governs tax-exempt status (i.e.,...

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Small Business: Deductions for Charitable Giving

Small Business: Deductions for Charitable Giving

How Your Business Benefits By Giving Back Tax breaks for charitable giving aren't limited to individuals, your small business can benefit as well. If you own a small to medium-size business and are committed to giving back to the community through charitable giving, here's what you should know. 1. Verify that the Organization is a Qualified Charity Once you've identified a charity, you'll need to make sure it is a qualified charitable organization under the IRS. Qualified organizations must...

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Tax Tips for December 2020

Tax Tips for December 2020

Click on the links below to jump to each section in this article: Retirement Contributions Limits Announced for 2021 Solar Technology Tax Credits Still Available for 2020 Relief for Drought-Stricken Farmers and Ranchers Beware of Gift Card Tax Scams Charitable Donation Deduction Could Lower Your Tax Bill   Retirement Contributions Limits Announced for 2021 Cost of living adjustments affecting dollar limitations for pension plans and other retirement-related items for 2021 are as follows:...

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Working Remotely Could Affect Your Taxes

Working Remotely Could Affect Your Taxes

What You Need to Know When COVID-19 struck last March, employers quickly switched to a work-from-home model for their employees, many of whom began working in a state other than the one in which their office was located. While some workers have returned to their offices, many have not. If you're working remotely from a location in a different state (or country) from that of your office, then you may be wondering if you will have to pay income tax in multiple jurisdictions or whether you will...

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Business Tax Provisions: The Year in Review

Business Tax Provisions: The Year in Review

Here's what business owners need to know about tax changes for 2020. Standard Mileage Rates The standard mileage rate in 2020 is 57.5 cents per business mile driven. Health Care Tax Credit for Small Businesses Small business employers who pay at least half the premiums for single health insurance coverage for their employees may be eligible for the Small Business Health Care Tax Credit as long as they employ fewer than the equivalent of 25 full-time workers and average annual wages do not...

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Tax Tips for December 2020

Tax Tips for November 2020

Click on the links below to jump to each section in this article: Seasonal Workers and the Healthcare Law Tips for Taxpayers: Backup Withholding Tax-Related Items To Keep in Mind When Disaster Strikes Individual Retirement Arrangements: Terms To Know   Seasonal Workers and the Healthcare Law Businesses often need to hire workers on a seasonal or part-time basis. For example, some businesses may need seasonal help for holidays, harvest seasons, commercial fishing, or sporting events....

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Investing in Opportunity Zones: The Facts

Investing in Opportunity Zones: The Facts

The Tax Cuts and Jobs Act included numerous changes for businesses and individuals. One of these was the creation of the Opportunity Zones tax incentive, the purpose of which is to spur economic development and job creation in distressed communities by providing tax benefits to investors. Which Communities Qualify as Opportunity Zones? Low-income communities and certain contiguous communities qualify as Opportunity Zones if a state, the District of Columbia, or a U.S. territory nominated them...

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