Tax FAQ For Tax Year 2020

Tax FAQ for Tax Year 2020

Q: When are my taxes due? A: May 17, 2021 is the due date for individual tax returns – Form 1040 – and making 2020 income tax payments. But there are other due dates you may need to know too: April 15: 1st estimated tax payment for 2021 April 15: income tax return for C corporations Q: Is my stimulus payment taxable? A: NO! Your stimulus payments (officially called Economic Impact Payments, or EIPs) are not taxable. Q: Why did my tax preparer/tax software ask how much I got for stimulus payments? A: Even though the EIPs aren’t taxable, they…

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How Freelancers, 1099 Workers, and Self-Employed Can Deduct 20% of Business Income

Did you know that you can deduct 20% of your business income on your personal tax return? You can, thanks to the Tax Cut and Jobs Act (TCJA). The TCJA brought a lot of tax changes for small business owners. And if you're self-employed, a freelancer, contractor, or had any 1099 income - even from a side gig - that includes you. The biggest tax change: A 20% deduction on self-employed business income called the Qualified Business Income Deduction. That means you will only pay income tax on 80% of your qualified business income. The 20% deduction is for income…

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How To Fill Out Schedule C If You’re Self-Employed

If you're self-employed, work as a freelancer or contractor, or have a side gig, you are a business. And that means you'll need to fill out Schedule C as part of your federal income tax return. When you use Schedule C, you can deduct business expenses against the money you earned to lower your income... and lower your tax bill. Your tax software will do all of the math for you – but you still have to enter all the correct information. After all, the tax software has no idea how much you spent on office supplies unless you tell…

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Get Ready For Smaller Paychecks Starting January 1

Get Ready for Smaller Paychecks Starting January 1

The Payroll Tax “Holiday” Comes Due Next Year You’re may be getting bigger paychecks now that the President’s “payroll tax holiday” has started. If you are, you need to prepare yourself for a big drop in pay starting on January 1, 2021. That’s because the payroll tax holiday is really just a delay. You still owe the taxes – you just don’t have to pay them right now. And to make up for the tax you’re skipping for the rest of 2020, your employer will take out double taxes for the first few months next year. What Are Payroll Taxes?…

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The New Rules For PPP Loans

The New Rules for PPP Loans

They keep changing the rules – these are the latest Updated September 2020 Back when PPP (Paycheck Protection Program) loans first came out, there was a ton of confusion… and there still is. The rules have changed a bunch of times, and there’s legislation floating around right now that might change them again. But as of right now, here’s what’s going on with PPP loans. You can apply for a PPP loan through August 8, 2020 When Congress realized that most small business owners hadn't applied for or gotten PPP funds, they extended the application deadline. There are still funds…

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