You're not really getting paid to learn, but it definitely pays to learn.
The Planner is CORE Group's blog and a way to help others interested in up to date tax service news.
Ask any entrepreneur about their business goals and the No. 1 or No. 2 answer is going to be something around growth. In my entrepreneurial circles, the questions are, “How much revenue do you have?” or “How many employees do you have?” Never, not once, have I asked the question, “Yeah, but how much money did you make?”
We've written about the Employee Retention Credit (ERC) expansion in the American Rescue Plan Act of 2020, but our experience is that most small businesses don't realize they are probably eligible for large refunds. Eligible businesses can receive up to $14,000 PER EMPLOYEE, so it is worth revisiting to see if your business is eligible.
Lots of the old tax rules have changed in the last few years. If you haven't reviewed and adapted, you are likely paying your rich Uncle Sam too much. The Tax Cut and Jobs Act (TCJA) combined the amounts for standard deductions and exemptions into one number. The Act also eliminated deductions entirely. This effectively removed itemized deductions for many tax payers since the standard deduction/exemption for 2020 is $24,800 (married filing jointly).
2020 brought a lot of unique challenges to entrepreneurs, and 2021 is shaping up for a wild ride as well. It is easy to miss tax planning when you're trying to keep your proverbial head above water. I've created a quick check list of the most impactful small business tax strategies for 2021.
To answer your question, no Congress is not done. In the wee hours of December 21st, they passed the Consolidated Appropriations Act 2021 and included an extension of the popular Paycheck Protection Program (PPP) for 2021. The Small Business Administration has 10 days to issue regulations, and as in the CARES Act, expect the SBA to have several revisions.