ML Tax and Insurance

Happy New Year everyone. Please share this post in your timeline and tag me. You will be automatically be entered in our raffle draw for $1,000 cash or a 7 day ...Mexican Riviera Cruise. Good luck everyone. It's tax filing season again and we are here to make the process smooth and pain free for you as possible. Rest assured, we will get you the MAXIMUM refund you deserve.

For early filers who had unemployment income, your refunds will be delayed. If you check the status of your refund on the IRS website, it will display, "You may not have entered your information incorrectly...". You did not enter your info incorrectly, rather your refunds are being recalculated to make the unemployment income nontaxable for the first $10,200. Most likely, your refunds will increase. There is no word yet when your refunds will be released or when they will be done with the recalculation.

4 Tax Breaks Included in Biden's Stimulus Plan 1. Child Tax Credit The child tax credit would increase to $3,000 per child under 18 ... and $3,600 per child under 6 for the 2021 tax year. Currently, the tax credit is for $2,000 per child under 17. The credit would also be made fully refundable for 2021. That means taxpayers receive a refund for the credit, even if it's more than what they owe in taxes. Right now, the credit is only partially refundable up to $1,400 and those who owe no tax must make at least $2,500 a year to qualify for that $1,400. The full credit would be available for single filers who make $75,000 or less, joint filers or surviving spouses who make $150,000 or less, and heads of households who make $112,500 or less. After that, the amount of the credit would be reduced by $50 for each $1,000 that exceed the thresholds. Half of the credit may be advanced to families over the next six months beginning in July, based on the most recent tax information available, either 2019 or 2020. It remains unclear clear if the payments would be monthly or in other increments. 2. Child Care Tax Credit President Biden also wants to expand this credit on an emergency basis for one year. Families would get a tax credit equal to 50% of their child care expenses for children under 13, up to $4,000 for one child and up to $8,000 multiple children. The credit would also be refundable, and families who earn between $125,000 and $400,000 would receive a partial credit. 3. Earned Income Tax Credit The stimulus plan also would expand the earned income tax credit, or EITC, for the 2021 tax year. It would increase the age requirements and provide a larger benefit to workers without children. Childless workers could claim the credit starting at age 19 instead of 25 except for some full-time students. The age limit of 65 would be eliminated, too. These workers would also get about three times more from the credit, around $1,500 from $530. 4. Unemployment benefits tax exemption Unemployment benefits are typically taxable, but a Senate amendment to the bill would make the first $10,200 of jobless benefits tax free for taxpayers with incomes of $150,000 or less for the 2020 tax year. If you already filed your taxes but could benefit from this new break, you may need to file an amended tax return, but official guidance hasn't been given by the IRS, which is likely waiting until the bill becomes law.

On 12/27/2020, President Trump signed the COVID Relief & Omnibus Agreement right before the pending government shutdown. So what's included?... Business: Extension and expansion of the PPP including: A second round of loans for small businesses with a 25% reduction in quarterly revenue from 2019 to 2020 Modifications to better serve nonprofits, restaurants, live venues, independent movie theaters, and cultural institutions Forgiveness simplification for loans of $150,000 or less Deductibility of expenses paid for with PPP funds may be included Need to wait for the official bill to be released Provides $20 billion to restart and extend EIDL grants $15 billion grant program for live venues, theatres, museums, zoos Extended and improved Employee Retention Credit Tax credit to support employers offering paid sick leave Individual: Stimulus checks of up to $600 per adult and child Enhanced unemployment benefits through March of 2021, with $300 per week Strengthened Low Income Housing Tax Credit Improved Earned Income Tax Credit & Child Tax Credit that allows a lookback to 2019 income 100% deduction for business meal expenses for 2021 and 2022 Lower excise tax rates for beer, wine, and spirits makers Extensions: Mortgage debt forgiveness exclusion from income extended five years Extension of the New Markets Credit & Work Opportunity Tax Credit (WOTC) Extended clean energy tax credits If you want to walk through your options and new changes, Let's talk.