Newman Associates

This makes me furious for small businesses.

Quickbooks has announced it is closing Intuit Online Payroll(IOP) (see the link below). Many of my clients have already moved to Gusto https://lnkd.in/gXU-A4D but if you are still on IOP, please be aware of this upcoming change. https://lnkd.in/gSaN2U3 #cpa #payroll #accounting

Good news for my Cannabis clients

From Spidell IRS announces plan to adjust returns for unemployment exclusion (03-31-21) The IRS will automatically adjust 2020 returns for taxpayers who filed prior to the enactment of the unemployment compensation exclusion included in the American Rescue Plan Act. (IR-2021-71) The returns will be adjusted to exclude up to $10,200 ($20,400 for MFJ) of unemployment compensation for taxpayers with modified AGI of less than $150,000.... The IRS expects that the first refunds will not be issued until May and will continue into the summer. With processing delays at the IRS, it is unlikely that filing an amended return will generate a refund any faster. However, the IRS has confirmed that the automatic adjustments will not increase any other benefits on the taxpayers’ returns that are limited by AGI. As a result, for clients who will benefit from increased Recovery Rebate Credits, Earned Income Credits, etc., you may want to consider amending those returns. Though the IRS has stated they will also be automatically refunding excess Premium Tax Credits that were paid with 2020 returns, there was no information on those refunds included in this guidance.

The Employee Retention Credit is very powerful and will help a lot of small businesses, but keep in mind that if you qualify for the credit, you must adjust your taxes accordingly The employee retention credit amount is not included in the employer's income for federal income tax purposes. However, the employer is not allowed an income tax deduction for wages that equal the employee retention credit amount. Therefore, if an employer paid an employee $10,000 in wages and took $5,000 employee retention credit, the employer's deduction for wages must be decreased by $5,000.

Tax deadline extended for individuals and some other entities.

Good news for businesses

For those of you that had a separate login for TSheets by QuickBooks and Intuit QuickBooks, and are having trouble logging in to QBO today, change your T-sheets login so you login with Intuit. Intuit QuickBooks and TSheets by QuickBooks have now moved onto the same platform, and Intuit did not warn us of this log-in issue.

Reminder that California businesses are about to get their annual Personal Property Tax Reminder Statements from their counties (Form 571L). This not very official looking letter is important. Do not ignore it. Businesses owe personal property taxes on computers, chairs, desks and any other items defined as personal property. Essentially everything not nailed to the ground and some things that are.... Consult us for more information. #businesstaxes

When is college tuition deductible. Here is a great article by SmartAsset.com https://smartasset.com/t/is-college-tuition-tax-deductible)%20or%20your%20spouse.