Innovative Tax, LLP

Treasury Begins Disbursement, of $600 Stimulus Payments . Treasury Secretary Steve Mnuchin tweeted that a "payment file" was delivered to the Federal Reserve on Tuesday. This means that some Americans may have already received their payments via direct deposit. These payments may begin to arrive in some accounts by direct deposit as early as tonight and will continue into next week, Steve Mnuchin, Treasury Secretary, via Twitter. Paper checks will begin to go out on Wednesday. . The $600 payment will be received by those who make less than $75,000 a year. Couples who make up to $150,000 annually will receive $1200. Parents of dependent children age 16 or younger will receive $600 for each child

California says no deduction for expenses paid with forgiven PPP funds (12-23-20) In anticipation of the new federal stimulus package, we want to let you know that California law specifically requires PPP loan forgiveness to reduce deductions. California does not conform to this federal law, which is amended as part of the stimulus package. Taxpayers will still be required to reduce their deductions on the California return because California enacted AB 1577 (Ch. 20-39), which specifically prohibits taxpayers from claiming any deductions or credits for expenses that are paid with forgiven PPP loan amounts. So when tax planning, reduce business expenses by the amount of the PPP loan forgiveness on the California return.

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The California State Treasurer has begun sending e-mails to California employers telling them to register for CalSavers, California’s new retirement savings program. These are not fraudulent e-mails, but they are being sent to employers who are not yet required to register for the program. The program is being phased in over a three-year period, and employers must register and participate on the following dates. Employers with: More than 100 employees were required to regis...ter by September 30, 2020; More than 50 employees must register by June 30, 2021; and More than 5 employees must register by June 30, 2022. Only employers who do not offer retirement plans to their employees are required to participate in the program. However, employers that offer a retirement plan must still certify an exemption for the business through the CalSavers website. See more

STIMULUS & CARES ACT FAQ'S Q. What happens if I file my 2020 tax return and my income disallows me from the amount of stimulus payment I already received. Will I have to pay it back? A. No, you will not need to pay back the rebate. Q. Is the amount I received from Federal Unemployment taxable?... A. Yes, at this time the tax code does not offer any partial or full exclusion for unemployment compensation. Q. Is it true that my employer can now pay up to $ 5,250 of student loan debt and is it not taxable to me? A. Partially, as long as the employer pays the debt between March 27, 2020 and December 31, 2020 the amount is non taxable. See more