Joseph Behrman Tax Preparation Services

If you were unable to enroll or disenroll in Medicare because you could not reach us by phone after January 1, 2022, you will be granted additional time, through December 30, 2022. Learn more: http://ow.ly/QnRr50IYq0K

Teachers, have you heard the good news? Get the 4-1-1 on the new higher amount you can deduct on your taxes for out-of-pocket expenses. Previously $250, teachers and educators are now eligible to claim up to $300. To learn more click here: https://go.usa.gov/xtzsN

Happy Teacher Appreciation Day!

A reminder from the IRS: Your ITIN may expire before you file a tax return in 2021. All ITINs not used on a federal tax return at least once in the last three years will expire on December 31st . Renew yours now @ www.irs.gov/itin

Medicare and Dental Coverage: A Closer Look Medicare does not cover routine dental care and about half of Medicare beneficiaries do not have dental coverage. Some beneficiaries have dental coverage through other sources, including Medicare A…

COBRA premium assistance credit clarified further The IRS has supplemented its guidance on COBRA premium payment assistance and the corresponding business tax credit under the American Rescue Plan Act.

https://www.accountingweb.com/tax/business-tax/proposed-changes-to-self-employment-tax-rules

Proposed Changes to Self-Employment Tax Rules The Biden administration’s proposals reflected in the “Green Book” include significant revisions in the

An tool now enables families to quickly and easily unenroll from receiving monthly payments of the , if they so choose. https://go.usa.gov/x6y6s

begins its “Dirty Dozen” list for 2021 by reminding taxpayers, and financial institutions to be on the lookout for these 12 nefarious schemes and scams for your : https://go.usa.gov/x6f7x

Some families may prefer to wait until the end of the year and receive the entire Child Tax Credit instead of receiving advance payments. There is an IRS tool that lets them do just that: https://go.usa.gov/x6y6s

ICYMI: Businesses can claim 100% of their food or beverage expenses paid to restaurants between Jan. 1, 2021 and Dec. 31, 2022. Click here to learn more: go.usa.gov/xHgy8

Thieves are actively working to steal the taxpayer information and identities. The IRS, working with the Security Summit, has six steps you can take to protect your identity. To learn more, click here:
https://go.usa.gov/x6gm9

If you answer a charity’s call for help, consider contributing by check or credit card, not cash. The IRS urges you to stay alert and check that you’re donating to legitimate charities. Consider using this IRS tool to find verified charitable organizations: www.irs.gov/teos

One way to avoid a tax-time surprise next year is to adjust your tax withholding with your employer.

This is easy to do using the Tax Withholding Estimator on IRS.gov. This tool can help determine if your employer is withholding the right amount. This is especially important if you got an unexpected result after filing your tax return this year…including a larger-than-expected refund.

Also, remember if you experience a life event like marriage, divorce, birth of a child, or an adoption, it’s also a good idea to check your withholding. Find out more here:
www.irs.gov/withholding

Check out these IRS resources you need to recognize and avoid phishing scams all year long. www.irs.gov/phishing

Many working people qualify for the IRS Earned Income Tax Credit. Do you? Do your loved ones? Spread the word about EITC: www.irs.gov/eitc

One third of workers eligible for the Earned Income Tax Credit is new to the EITC each year. Help the IRS spread the word so no one misses this valuable opportunity. To learn more, click here: www.irs.gov/eitc

Learn about the special tax resources are available for members of the military and their families:
www.irs.gov/military

An IP PIN is a six-digit code that helps prevent identity thieves from filing fraudulent tax returns using your personally identifiable information. Sign up with the IRS at: www.irs.gov/ippin

The form of payment for the 2nd Economic Impact Payments may be different than for the 1st. Some people who got a check last time might get a prepaid debit card now. IRS urges you to check your mail: EIPcard.com

Learn about retirement plan options on the IRS webinar “Retirement Plans for Small Employers and Self-Employed.” Register by Jan. 21 at https://go.usa.gov/xAcVR

The Employee Retention Credit is 50% of up to $10,000 in wages paid by an eligible employer whose business has been impacted by COVID-19. To see if you may be eligible to claim this credit, click here: https://www.irs.gov/coronavirus/employee-retention-credit

and the Treasury Department began a second round of Economic Impact Payments to millions of Americans. There is no action required by eligible individuals to receive this new payment. Initial direct deposit payments have started arriving for some and continue into next week for many. Paper checks have started being mailed starting today and continue into January.

Some people may see the direct deposit payments as pending before the official payment date of Jan. 4, 2021. Please keep in mind that the payments are automatic, and you don’t need to contact your financial institution or the IRS with payment timing questions.

Most recipients will receive payments by direct deposit. People who got the first payments via Direct Express will receive this second payment the same way. For anyone who receives payments by check or debit card, these will be mailed through January. Carefully check your mail. Eligible individuals who didn’t receive an Economic Impact Payment this year – either the first or the second payment -- will be able to claim it when they file their 2020 taxes in 2021. You can check the status of your payments in a few days by using the Get My Payment tool, available in English and Spanish on IRS.gov.

For details, see: https://go.usa.gov/xAK4f

Starting in January, taxpayers may opt into the IRS Identity Protection (IP) PIN program. The IP PIN is a six-digit number assigned to eligible taxpayers to help prevent the misuse of their Social Security number on fraudulent federal income tax returns. An IP PIN helps the IRS verify a taxpayer’s identity and accept their electronic or paper tax return. To learn more, click here: https://go.usa.gov/x7M5H

Find out how to keep up with what’s new for 2021. To learn more, click here: https://www.irs.gov/newsroom/get-ready-for-taxes-whats-new-and-what-to-consider-when-filing-in-2021

Although it may not be tax season, scammers are still lurking everywhere. Oftentimes they impersonate your bank, a favorite shop or even the IRS to try and get you to share personal information. Learn how to spot a fake, click here: www.irs.gov/phishing

Starting in January, taxpayers may opt into the IRS Identity Protection (IP) PIN program. The IP PIN is a six-digit number assigned to eligible taxpayers to help prevent the misuse of their Social Security number on fraudulent federal income tax returns. An IP PIN helps the IRS verify a taxpayer’s identity and accept their electronic or paper tax return. To learn more, click here: www.irs.gov/securitysummit

In a plan to get ahead of scammers, IRS and Security Summit partners remind taxpayers and tax professionals to use multi-factor authentication. The returning user must enter two pieces of data to securely access an account or application. All software providers agreed to make it a standard feature in 2021. To learn more about the benefit of using multi-factor authentication, click here: www.irs.gov/securitysummit

https://www.accountingtoday.com/news/irs-and-treasury-clarify-deductibility-of-ppp-loan-expenses-as-aicpa-criticizes-forgiveness-questionnaire Bottom line. If you took out a PPP loan and used some of the loan to pay for expenses such as utilities, you cannot deduct the utilities expense if the loan is fully forgiven. If the loan is partially forgiven, the amount of the loan that is not forgiven allows you to deduct expenses from the loan that is not forgiven. Here is an example:

You get a PPP loan for $50,000.

$40,000 of the $50,000 is forgiven. This leaves
you with $10,000 of unforgiven loan.

If you used $2,000 of that $10,000 unforgiven
loan to pay for expenses such as utilities, you
can deduct the $2,000 expense.


Any issue involving PPP loans should be discussed with your tax preparer.

IRS clarifies deductibility of PPP loan expenses, as AICPA criticizes forgiveness questionnaire The guidance clears up the tax treatment of expenses when a loan from the Paycheck Protection Program hasn’t been forgiven by the end of the year.

With so many changes this year, the IRS recommends all taxpayers review their withholding annually. Use the IRS Tax Withholding Estimator to check and make sure you’re not having too little or too much federal tax withheld. This tool offers workers, retirees and self-employed individuals a step-by-step method to help figure out if you should adjust your withholding.

If you do need to adjust your withholding simply submit a new IRS Form W-4, Employee’s Withholding Certificate to your employer.

To learn more, click here: https://go.usa.gov/xfSMk

The IRS is reopening the registration period for federal beneficiaries who didn’t receive $500 per child payments earlier this year. We’re doing this to help taxpayers who were unable to provide their information in time to receive Economic Impact Payments for their children. Use the Non-Filers tool on IRS.gov starting Aug. 15 through Sept. 30 to enter information on qualifying children to receive the supplemental $500 payments. To learn more, click here: www.irs.gov/nonfilereip

Every year the IRS mails letters or notices to taxpayers for many different reasons.
Here are some do's and don'ts for taxpayers who receive one:
• Don't ignore it
• Don't panic
• Don't reply unless instructed to do so
• Do take timely action
• Do review the information
• Do respond to a disputed notice
• Do remember there is usually no need to call the IRS
• Do avoid scams
To learn more about IRS notices and what to do, click here: https://www.irs.gov/newsroom/what-taxpayers-should-do-if-they-get-a-letter-or-notice-from-the-irs

IRS warning: Don’t believe those who demand you turn over your Economic Impact Payment to them because you receive assistance from a state or federal program like Medicare or Medicaid. IRS urges you to alert your loved ones of anyone trying to take their money. https://go.usa.gov/xwPFw

If you didn’t file a 2016 tax refund, you might have money waiting for you. Unclaimed income tax refunds worth more than $1.5 billion are waiting for 1.4 million individual taxpayers. There's only a three-year window to claim these refunds – a window that closes on July 15. To claim the refund, a return for tax year 2016 must be filed by July 15, 2020.

By not filing a tax return, you could lose more than just your refund. Many low- and moderate-income workers may be eligible for the Earned Income Tax Credit. For 2016, the credit was worth as much as $6,269.

Find out more: https://go.usa.gov/xwuxM

Don’t lose out on a tax refund simply because you didn’t file. You may not have file because you didn’t earn enough money to be required to file. However, if you had federal taxes withheld by your employer may be eligible for a refund of those taxes. Also, even if you aren’t required to file, you may qualify for benefits like the Earned Income Tax Credit. To learn more, click here: www.irs.gov/unclaimedrefunds

Help us spread the word: Americans who don’t earn enough to have a tax filing requirement should sign up online with the IRS for an Economic Impact Payment by Oct 15. To learn more, click here: www.irs.gov/nonfilereip

Millions of people are getting Economic Impact Payments by prepaid debit card mailed in plain envelopes from Money Network Cardholder Services. IRS Reminder: Be sure to carefully check your mail: www.eipcard.com

We know that childcare or adult dependent care can be a major expense. Fortunately, the child and dependent care tax credit can provide some relief. If you pay for daycare expenses, you may be eligible to claim up to 35% of what you spend. To learn more about this credit, click here: https://go.usa.gov/xwZVa

IRS Reminder: Nearly 4 million people are being sent their Economic Impact Payment by prepaid debit card, instead of paper check. These cards will be delivered in a plain envelope from Money Network Cardholder Services. Know what to expect, click here: www.eipcard.com

A tip for taxpayers from the IRS: There’s a tool for anyone who has very little income to sign up for their Economic Impact Payment. This tool helps them sign up quickly and easily. Click here to get started: www.irs.gov/nonfilereip

Help us spread the word among Americans experiencing homelessness.