2020 isn’t over until you file 2020 taxes, sorry.
If you’re like me, you probably don’t want to think about 2020 anymore. But before you can truly move on from 2020, you must deal with your 2020 taxes.
For the 2021 tax season, many things have changed thanks to (among others) the COVID-19 pandemic.
In this post, I will help you understand what’s new for this tax season and what’s staying the same.
But first, let’s take care of the basics of the 2021 tax season:
Don’t pay more taxes than you need to.
One day, I heard that addictive jingle on the radio.
You all know what I am talking about.
And then I donated my first car, a 2002 Toyota Corolla. Only to find out later, I can’t do jack with the $1,000 write-off.
Because I didn’t itemize on my taxes.
There are 150 million taxpayers in the United States. 130 million of them — about 80% — will claim the standard deduction on their tax returns because they don’t have enough deductions to itemize.
If you donate to charity for the sake…
SBA PPP Loan 2.0
This week the Senate approved an additional $310B of funding for the SBA Paycheck Protection Program (PPP) loans for small businesses and the House approved it yesterday.
In my previous post, I discussed the original bill passed last month that established $349 billion in funding for SBA PPP loans. As I noted in my post, the money was first come first served and it was gone in 2 weeks.
Unfortunately, many small businesses, self-employed individuals, and contractors were either not able to get the funding, or by the time they applied, the funding had gone dry.
Eighty million taxpayers are going to receive the stimulus checks in the coming weeks — by direct deposit and paper checks in the mail. However, if you haven’t received it yet, chances are, you will not receive it.
I know it is frustrating and difficult to accept. Everyone is telling you how to spend your $1,200 stimulus check, while you are asking:
From what I have been able to gather, there can be six reasons why you didn’t get the stimulus check:
1) You make a lot of money.
Not everyone will get it.
Embedded in the recently passed $2 trillion economic stimulus package in response to the coronavirus pandemic, is a stimulus check payment that will put money directly in your wallet (or bank account).
Depending on your most recently filed tax returns, taxpayers making less than $75,000 ($150,000 if married-filing-joint) will get $1,200 ($2,400 if MFJ) plus $500 for each child under 17.
Including some Frequently Asked Questions.
In the aftermath of the economic shutdown due to the COVID-19 pandemic, the Federal government passed the coronavirus relief bill intended to support small businesses and self-employed individuals during this difficult time.
Coronavirus Aid, Relief, and Economic Security Act — CARES act — provides immediate funding to small businesses in the form of a $350 billion forgivable loan and is intended to save millions of jobs.
The forgivable loan program is called the Paycheck Protection Program.
The Paycheck Protection Program will provide loans up to $10 million with a maximum of 4% interest rate to…
What is the NPV of future dividends?
The dividend discount model is a widely accepted financial tool used to evaluate stocks based on the net present value of future dividends. It works by analyzing and making assumptions related to growth in dividends and interest rates. It’s a tool that is heavily based on speculation, but what sets it apart from other financial tools is its ability to compare specific numbers based on the given data with accuracy.
The dividend discount model can only be applied to stocks that pay dividends. Dividends are a portion of earnings that a company decides…
70% of all taxpayers can file their taxes for free.
Good news: In 2019, if you made less than $69,000, you can file Federal and State income taxes for FREE.
Bad news: Google isn’t going to help you discover these services.
In 2019, the ProPublica investigation found that TurboTax used “ deceptive design and misleading advertising to trick lower-income Americans into paying to file their taxes, even though they are eligible to do…
And avoid the last-minute rush.
Tax season is the most dreaded time of the year for startup founders. Or so I have heard, doing this for 7+ years.
Before you know it, April 15, will be around the corner and your 1120 C-Corp tax return will be due.
I don’t have a solution to eliminate the unpleasant experience, but I do know how you can ease the pain.
You can get your startup tax-ready and avoid the last-minute rush if you follow a simple, yet practical, deadline-driven approach.
As in, every single month, do the following before the end of…
Trust me. You shouldn’t be reading this.
The best writing advice comes from articles that are not about writing advice.
Ever read something and felt GREAT?
The sentences read like prose, meticulously polished, and crafted perfectly to land softly yet make a hard impact.
That’s the article you should analyze for writing advice, not the one that offers writing advice.
The internet is full of people telling you what you should do. Heck, I am doing it right now.
The wisdom is in writing that shows you what to do, not how to do it.
Instead of reading another Medium…