Williams Business Services

Those owing the Premium Tax Credit repayment may now file their tax return. The repayment provision was waived for 2020. The IRS is now accepting those returns.

Tax returns with unemployment on them filed before the updates to exclude the first $10200 will begin receiving refunds in May. Taxpayers do not have to do anything the IRS will refigure those returns and issue the refunds.

Amended tax returns will not be necessary for those who had unemployment and filed before the updates to IRS systems to exempt the first $10,200. The IRS will be processing changes to those tax returns and sending refunds. The IRS is not providing a timeline for the process as of yet.

As of yesterday, the IRS has issued guidelines regarding 2 items in the recently signed legislation ( American Rescue Plan). They are asking taxpayers/Tax Preparers not to file amended returns in regard to the Unemployment benefits being non-taxable up to $10,200 and the elimination of the repayment of the Advance Premium Tax Credits. My clients will be contacted once guidance is issued as to the proper procedure.

The IRS "Where's my refund" application is experiencing problems with updating certain taxpayer statuses. If you are waiting for a refund I would suggest checking with your bank for direct deposits as the application may not be updated to your current status.

Important tax update for the upcoming tax season only Following tax law changes, cash donations of up to $300 made this year by December 31, 2020 are now deductible without having to itemize when people file their taxes in 2021. The Coronavirus Aid, Relief and Economic Security Act includes several temporary tax law changes to help charities. This includes the special $300 deduction designed especially for people who choose to take the standard deduction, rather than itemizin...g their deductions. This change allows individual taxpayers to claim a deduction of up to $300 for cash donations made to charity during 2020. Before making a donation, taxpayers should check the Tax Exempt Organization Search tool on IRS.gov to make sure the organization is eligible for tax deductible donations. Cash donations include those made by check, credit card or debit card. They don't include securities, household items or other property. Though cash contributions to most charitable organizations qualify, some don’t. People should review Publication 526, Charitable Contributions for details. Cash contributions made to supporting organizations are not tax deductible.

Happy Thanksgiving to all. I am Thankful to everyone who has impacted my life in every way. May everyone have a good day.

Fraud Alert: The IRS Security Summit has advised the Tax Community of a text scam which will request bank account information to deposit an Economic Impact Payment (Stimulus) of $1200. Please do not fall prey to this scam. The IRS will not request information through a text message.

Did you work from home this year? Did you know you may qualify for tax deductions based on your work from home? Free consultation is available to help with your individual situation. You may reach us by private message, email, text, phone or in person.

Treasure hunters beware: The IRS wants a cut if you find that diamond in the rough. A recent tax court case sided with the IRS in determining that property that is found and not previously owned by the finder is taxable.

Did you receive unemployment this Year? Receive a free IRS flyer regarding the tax effects of unemployment compensation. Send request by email to [email protected].