Pay Protection Program 2021
My name is Wendy Platón and I am the CEO & Owner of WP Accounting Services, LLC.
As you may imagine, this is a busy time for all accountants and tax preparers. At WP Accounting Services, LLC we are working diligently to ensure our clients meet all their requirements and deadlines.
In addition, you may have already heard, the second round of aid for small businesses (Paycheck Protection Program) was approved which now offers another opportunity for entrepreneurs to receive financial assistance. The SBA is ramping up guidelines and will continue to provide updates on loan requirements.
With this massive coronavirus relief and government funding bill, do you think your business is getting the relief it needs?
I'm working with my clients in developing key strategies so they can take advantage now.
Please know that at WP Accounting Services, LLC we take great pride in the partnerships we create with each of our clients. Our number one goal is to provide the best service possible resulting in strong peace of mind for you.
In the meantime, here are a few tax updates for this year that may impact you.
Recovery Rebate Payments and Credits - Did you receive the full amount of the round 1 and 2 of stimulus payments provided to individuals? You get a chance to take back monies due to you through this reconciliation when filing your 2020 tax return.
Paid Sick and Family Leave Credits - Not only do small businesses owners receive COVID-19 relief, self-employed individuals can also claim this credit when filing their 2020 tax return using Form 7202. Make sure ask if you qualify for this credit.
100% Business Meal Deduction - As an effort to help the restaurant industry, you can now deduct 100% of your business-related expenses for good and beverages provided by a restaurant for amounts paid or incurred after December 31, 2020 and before January 1, 2023.
Charitable Contributions - individuals that do not itemize their deductions will continue to receive a credit of up to $600 (for married filing jointly) of contributions to an IRS eligible nonprofit organization. This is not only a great tax strategy but also allows you to help organizations that have also suffered the impacts suffered of the pandemic.
Refundable Tax Credits - when filing your 2020 tax return, you can elect to use your 2019 earned income to compute your earned income and child tax credits.
New Guidance Pending for Self-employed and sole proprietors - this is current news but as of February 22, 2021 the Biden Administration signed into law new guidance on the computation and removal of exclusions for PPP loans that will result in more funding out to those that were not previously eligible to get funding. Final regulations are still pending that will provide more clarity on how this impacts self-employed and sole proprietors.
Feel free to reach out if you would like to hear more about some of the great things we are doing at WP Accounting Services, LLC.