IRS to Recalculate Taxes on Unemployment Benefits; Refunds to Start in May

IRS to Recalculate Taxes on Unemployment Benefits; Refunds to Start in May

WASHINGTON – To help taxpayers, the Internal Revenue Service announced today that it will take steps to automatically refund money this spring and summer to people who filed their tax return reporting unemployment compensation before the recent changes made by the American Rescue Plan.

The legislation, signed on March 11, allows taxpayers who earned less than $150,000 in modified adjusted gross income to exclude unemployment compensation up to $20,400 if married filing jointly and $10,200 for all other eligible taxpayers. The legislation excludes only 2020 unemployment benefits from taxes.

Because the change occurred after some people filed their taxes, the IRS will take steps in the spring and summer to make the appropriate change to their return, which may result in a refund. The first refunds are expected to be made in May and will continue into the summer.

For those taxpayers who already have filed and figured their tax based on the full amount of unemployment compensation, the IRS will determine the correct taxable amount of unemployment compensation and tax. Any resulting overpayment of tax will be either refunded or applied to other outstanding taxes owed.

For those who have already filed, the IRS will do these recalculations in two phases, starting with those taxpayers eligible for the up to $10,200 exclusion. The IRS will then adjust returns for those married filing jointly taxpayers who are eligible for the up to $20,400 exclusion and others with more complex returns.

There is no need for taxpayers to file an amended return unless the calculations make the taxpayer newly eligible for additional federal credits and deductions not already included on the original tax return.

For example, the IRS can adjust returns for those taxpayers who claimed the Earned Income Tax Credit (EITC) and, because the exclusion changed the income level, may now be eligible for an increase in the EITC amount which may result in a larger refund. However, taxpayers would have to file an amended return if they did not originally claim the EITC or other credits but now are eligible because the exclusion changed their income.

These taxpayers may want to review their state tax returns as well.

According to the Bureau of Labor Statistics, over 23 million U.S. workers nationwide filed for unemployment last year. For the first time, some self-employed workers qualified for unemployed benefits as well. The IRS is working to determine how many workers affected by the tax change already have filed their tax returns.

The new IRS guidance also includes details for those eligible taxpayers who have not yet filed.

The IRS has worked with the tax return preparation software industry to reflect these updates so people who choose to file electronically simply need to respond to the related questions when electronically preparing their tax returns. See New Exclusion of up to $10,200 of Unemployment Compensation for information and examples. For others, instructions and an updated worksheet about the exclusion were available in March and posted to IRS.gov/Form 1040. These instructions can assist taxpayers who have not yet filed to prepare returns correctly.

Biden Signs PPP Extension Act Into Law, Moving Application Deadline to May 31

Biden Signs PPP Extension Act Into Law, Moving Application Deadline to May 31

President Biden on March 30 signed into the law the bipartisan Paycheck Protection Program (PPP) Extension Act of 2021 (HR 1799), which moves the application deadline to May 31, 2021. The PPP application window was originally set to expire the next day on March 31.

The bill was overwhelmingly approved in the House by a 415-to-3 vote; the Senate cleared it 92-to-7.

Additionally, the measure provides the U.S. Small Business Administration (SBA) with an extra 30 days to process loans submitted prior to June 1. However, no additional funding was provided for the program, which is expected to lapse in mid-April, according to the SBA.

Information on First and Second Draw PPP Loans can be located here.

The SBA’s March 25 PPP Data Report can be located here.

Launching a Non-Profit Organization: Essential Resources and Steps

Launching a Non-Profit Organization: Essential Resources and Steps

Starting a non-profit organization is a very fulfilling way to earn a living while giving back to your community. Whether you decide to help people, animals, or the environment, your non-profit is sure to have a positive impact on the world around you. But launching and growing a non-profit can be complicated. Soliciting help from financial service organizations like Northeast Financial Strategies is a great place to start! Here are some other tips and resources for organizing a successful launch.

 

Lay the Groundwork

 

Before getting too deep into launching your non-profit, take the time to do market research, structure your business properly, and ensure that running a charity is the right path for you.

 

  • Do some market research to find out if there is a need for your services in your community.
  • Make sure running a non-profit is the right move for you.
  • Structure your business as an LLC to give credibility to your services and limit your personal liability.

 

Keep Everything Legal

 

Non-profit organizations have to navigate a sea of complicated legal regulations. Get everything set up right from the beginning so you can avoid legal issues in the future.

 

 

Secure Adequate Funding

 

Earning funding for your non-profit will be one of your main jobs. As you prepare for the launch of your organization, start soliciting donations to cover your startup costs.

 

 

If you’ve always wanted a career focused on benefiting society rather than earning profits, launching a non-profit could be a great move. The startup process can be tricky, so take it day by day and try not to get overwhelmed. Keep these resources close at hand so you can reach for answers whenever you run into a roadblock.

 

Professional services can make it easier to launch and grow your startup. For help with tax preparation, money management, accounting, or payroll, reach out to Northeast Financial Strategies today.

Jeffrey Schweitzer Awarded 2021 Local Business Person Of The Year by Alignable

Jeffrey Schweitzer Awarded 2021 Local Business Person Of The Year by Alignable

Alignable Announces Jeffrey Schweitzer of NFS – Northeast Financial Strategies Inc. as a 2021 Local Business Person Of The Year alignable.com/l/e9dtz

Schweitzer Emerges As A Winner In National Competition Celebrating Hometown Business Heroes Supporting Peers During COVID Era

BOSTON, MA: February 16, 2021 — The largest online referral network for small businesses, Alignable.com is announcing the results of its month-long North American search for local business leaders who’ve gone above and beyond to help peers during the COVID Crisis. Today, Alignable’s network is honoring Jeffrey N. Schweitzer, EPA, CEP, ATP, RTRP of Northeast Financial Strategies, Inc. as Wrentham’s 2021 Alignable Local Business Person Of The Year!

Alignable amassed an incredible 86,000+ votes and recommendations about hometown business heroes. This is the third year Alignable has hosted this contest and the participation levels for 2021’s competition topped 2020’s by a monumental 800%. During a time where at least two-thirds of small businesses have regularly reported suffering negative effects from COVID issues, it’s clear with this outpouring of support just how much small business owners wanted to recognize the extraordinary efforts of their peers.

A Testament To The Bond Between SMBs

“To see so many business owners celebrate their peers was awesome — 60 votes landed every minute at the height of the contest,” said Eric Groves, Alignable’s Co-Founder and CEO. “This frenetic level of participation is a testament to the strength of the business relationships forged and reinforced over the past year.” Alignable’s 2021 Local Business Person Of The Year Contest ran from January 6 to February 5, 2021.
Alignable invited its 6 million+ members to vote for their favorite peers. In all, 2,962 local business people emerged victorious across North America, after 61,000+ votes were tallied and 25,000+ recommendations were reviewed.

We’re Stronger Together

”The Wrentham community means a great deal to me and, like many of my peers, I have gladly helped my fellow small business owners overcome a number of obstacles during this tough time,” said Schweitzer. “I am
beyond honored to receive this award and very grateful for the heartwarming support from my peers. We’re all stronger together.”

Schweitzer and other 2021 Local Business People Of The Year in communities across the U.S. and Canada have received badges on their Alignable profiles, in recognition of their contributions. In past years, the
awareness generated through this contest has helped drive additional connections, prospects, and new business for many winners.

Networking Surge Kicks Off 2021

“We hope the popularity of this year’s contest will lead to even greater awareness and business success for 2021’s winners,” said Alignable’s Co-Founder and President Venkat Krishnamurthy. “We’ve already heard
from some members that the surge in networking, referrals, and recommendations that occurred during 2021’s contest got them off to a stronger start this year.”

To arrange interviews with Schweitzer and/or an Alignable representative, please contact Alignable’s Head Of PR Chuck Casto at chuck@alignable.com. He also can offer JPEGs and other visuals, recommendations supporting winners, and additional information.

About Northeast Financial Strategies Inc.

Northeast Financial Strategies Inc. is a financial services organization with highly trained professionals working together to provide products and services to individuals & business owners. We are dedicated to problem
solving which is reflected in our diversified portfolio of resources. We offer Financial & Estate Planning, Investments, Insurance, Accounting, Payroll, Income Tax Preparation, & Notary Public Services for Individuals
& Small Businesses. Since opening our office in Wrentham in the Fall of 2010, Northeast Financial Strategies has consistently been voted by readers #1 in the Wicked Local Awards in the categories of Accountant,
Financial Planner and Insurance Agency. We have also brought home Regional Favorite Awards in the Accountant & Financial Planner categories consistently since 2016.

About Alignable

Alignable.com is the largest online referral network for small businesses in the U.S. and Canada. With 6 million+ members across 35,000+ local communities, Alignable is the network where small business owners
drive leads and prospects, generate referrals, land new business, build trusted relationships, and share great advice.

Jeffrey Schweitzer can be contacted at jeff@nfsnet.com or 800-560-4637 extension 14