As the value of cryptocurrency rises, so does the demand for it, particularly Bitcoin. The growing number of cryptocurrency traders require greater due diligence on how to determine and calculate their cryptocurrency taxes under IRS rules. Below are some general tax considerations for virtual currencies that a taxpayer should be mindful of: How is cryptocurrency [...]
Need a transcript from the IRS regarding your prior year US tax return as a proof of tax compliance? Or as a supporting document to reply to an IRS letter? We have seen times where either the IRS or taxpayer’s records were not updated, making a transcript critical to determine the next steps to assist [...]
According to the IRS, the child tax credit value as well as the age limit have increased for 2021 tax year. Below are the updates in detail: New Payment amounts based on children age: For child under the age of 6, the full amount credit is up to $3,600 ($300 per month). For child [...]
Updated Jan 7, 2022 Economic Impact Payments – commonly referred to as “stimulus checks” or “Recovery Rebate Credit” are funds to help reduce the financial burden of COVID-19 on individuals and their families. If you did not receive the first and second Economic Impact Payments or got less than the full amounts, be aware the [...]
According to the IRS, a special write-off for cash contributions is provided for 2021 tax year for taxpayers who give to charity. This special deduction is offered to anyone even if they take the standard deduction and do not itemize deductions. For Non-itemizers: What are the maximum limits for deduction? Single/ Married Filing Separately/ Head [...]
Tuesday June 15th (not Wednesday as we accidentally indicated in a prior email) is the extended due date for many U.S. taxpayers to file their 2020 taxes. It is also the 2021 2nd quarter estimated tax payment deadline (if necessary). Good job if you have already filed your 2020 U.S. Taxes! 2021 ESTIMATED TAX PAYMENTS If you need to pay [...]
With the beginning of the new Democratic administration of Joe Biden in January 2021, one can expect legislative changes which are consistent with the political and economic agenda of any new administration. With respect to tax law, there is oftentimes modifications of existing tax laws, as well as enactment of new laws for the purpose of fulfilling campaign [...]
Great job if you have already filed your 2020 U.S. Individual Tax Return! If you have not filed, the IRS announced in March 2021 that the 2020 federal individual income tax filing due date is automatically extended from April 15, 2021, to May 17, 2021.* If you are a U.S. citizen or resident alien residing overseas, you [...]
The Foreign Account Tax Compliance Act (“FATCA”) is a 2010 US law requiring foreign financial institutions (FFIs) to review data for their account holders and identify all their US account holders or be subject to withholding on certain payments. FORM W-8 These foreign financial institutions would request W-8 series forms to identify and document their [...]
Happy holidays! We just celebrated our 8 year anniversary this month and have been continuously looking for the best ways to help our clients, even in these challenging times! As we wrap up 2020, year-end tax planning has never been more crucial. This year brought challenges and disruptions that significantly impacted your personal and financial [...]