Star Accounting & Tax Services

02/22/2022

🚨Tax Credits and Deductions 🚨
Did you know that the IRS has extended the Credits for Sick and Family Leave (Form 7202) for self-employed individuals who may have been affected by or unable to perform services of work due to COVID-19. This's includes all of the following circumstances:

• You were subject to a federal, state, or local quarantine or isolation order related to COVID-19.
• You were advised by a health care provider to self-quarantine due to concerns related to COVID-19.
• You were experiencing symptoms of COVID-19 and seeking a medical diagnosis of COVID-19.
• You were seeking or awaiting the results of a diagnostic test for, or a medical diagnosis of COVID-19.
• You were exposed to COVID-19 or were unable to work pending the results of a test or diagnosis.
• You were obtaining immunization related to COVID-19.
• You were recovering from any injury, disability, illness, or condition related to such immunization.
• You were caring for an individual who was subject to a federal, state, or local quarantine or isolation order related to COVID-19.
• You were caring for an individual who had been advised by a health care provider to self-quarantine due to concerns related to COVID-19.
• You were caring for a son or daughter because the school or place of care for that child was closed or the childcare provider for that child was unavailable due to COVID-19 precautions.
• You were accompanying an individual to obtain immunization related to COVID-19.
• You were caring for an individual who was recovering from any injury, disability, illness, or condition related to the immunization.

Schedule an appointment by visiting our website https://www.staraccountingandtax.com/appointments or by calling (240) 390-7394.

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01/31/2022

🚨 What’s new for 2022 tax season? 🚨

*IRS will be sending out letter 6419, which will state the total amount of advance child tax credit payments you received. If you have children you need to wait until you receive this letter to file your income taxes.

* You’ll receive Letter 6475, showing the amount of your third stimulus payment. You will need this information to claim the Recovery Rebate Tax Credit if you qualify.

* Unemployment benefits (1099-G) will not come with a tax break this year. Last year there was a temporary tax break for certain people who received unemployment.

* The tax filing deadline for filing your 2021 returns is Monday, April 18, 2022.

05/17/2021

News update-Treasury Department and IRS announced today that Child Tax Credit payment will start in mid-July.

Eligible families will get up to $300 a month for every child under the age of 6 and up to $250 a month for every child ages 6 to 17.

Under the American Rescue Plan, individuals making up to $75,000, single parent head of household filers making up to $112,500 and married couples who file jointly with a combined income up to $150,000 per year are eligible to receive the full amount.

The automatic advanced payments administered by the IRS will be made through direct deposit, paper check and debit cards. Payments will be made on the 15th of each month, unless that date falls on a weekend or holiday, the Treasury Department said.

05/16/2021

If you paid taxes on unemployment benefits you received in 2020, the IRS may owe you a tax refund. Here's why.

As many as 10 million people who filed taxes before the American Recovery Plan was passed could be receiving tax refunds.

03/17/2021

The Treasury Department and Internal Revenue Service announced today that the federal income tax filing due date for individuals for the 2020 tax year will be automatically extended from April 15, 2021, to May 17, 2021.

03/14/2021

Key features of the new $1.9 trillion coronavirus relief package

§ Up to $1,400-per-person stimulus payments that will send money to about 90% of households⁠

§ The first $10,200 of Unemployment benefits will be tax-exempt for households making less than $150,000.

§ A $300 federal boost to weekly Unemployment benefits⁠

§ An expansion of the child tax credit to $3,000 per child age 6 to 17 and $3,600 for child under 6 for tax year 2021.
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§ Extends a 15% increase in food stamp benefits through September⁠

§ Helps low-income households cover rent⁠

§ Previously, any canceled federal student loan debt would have been considered taxable income. But the legislation now makes student loan forgiveness tax-free, which could mean major tax savings.

§ $350 billion in state and local aid, as well as billions of dollars for K-12 schools to help students return to the classroom, to assist small businesses hard-hit by the pandemic and for vaccine research, development and distribution.

02/26/2021

Standard mileage rate vs actual vehicle expenses

If you drive a personal vehicle for business, you have two options for deducting your vehicle expenses. You can use the standard mileage rate, or you can use the actual expense method.

Below you’ll find an easy-to-follow road map to choosing the best method for you.

02/07/2021

TAX TIPS - Here are a few important things for taxpayers to know this year:
- Unemployment benefits are taxable. People should watch their mail for a Form 1099-G or get their Form 1099-G from the website where they signed up for benefits.
- There's a new rule to help people who lost their job or had a change in income in 2020. Filers can use their 2019 earned income to figure their earned income tax credit, if their 2019 earned income was more than their 2020 earned income. This new rule also applies to the additional child tax credit.
-Some people may be eligible to claim the recovery rebate credit if they didn't get Economic Impact Payments or received less than they were entitled. People must file a tax return to claim the recovery rebate credit even if they aren’t normally required to file.

02/07/2021

We are authorized IRS e-file provider.

01/16/2021

IRS delays start of tax filing season to Feb.12

IR-2021-16, January 15, 2021 — The Internal Revenue Service announced that the nation's tax season will start on Friday, February 12, 2021, when the tax agency will begin accepting and processing 2020 tax year returns.

01/10/2021

Still waiting on your stimulus check? Here are a few updates:

The IRS began issuing electronic payments to taxpayers bank accounts starting December 30th and paper checks/ Pre-paid debit cards starting January 8th.

Haven’t received your payment yet or did you receive the wrong amount? Good news!

You may be eligible for the Recovery Rebate Credit. This is a credit equal to the amount of your stimulus payment issued as an advanced payment. This can be claimed on your 2020 taxes and you will receive it as a refund or a reduction in any taxes owed for 2020.