CHILD TAX CREDIT

The American Rescue Plan’s expansion of the Child Tax Credit supplements the earnings of families receiving the tax credit. Specifically, the Child Tax Credit has been revised in the following ways: The credit amount has been increased. The American Rescue Plan increased the amount of the Child Tax Credit from $2,000 to $3,600 for children under age 6, and $3,000 for other children under age 18. The credit’s scope has been expanded. Children 17 years old and younger, as opposed to 16 years old and younger, will now be covered by the Child Tax Credit. Credit amounts will be made through

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SBA raises EIDL loan limit to $500,000

The Small Business Administration is more than tripling the maximum amount that small businesses and nonprofits can borrow under the Economic Injury Disaster Loans (EIDL) program. Starting the week of April 6, 2021 the loan limit for COVID-19 EIDL loans will jump from six months of economic injury with a maximum loan amount of $150,000 to up to 24 months of economic injury with a maximum loan amount of $500,000. “More than 3.7 million businesses employing more than 20 million people have found financial relief through SBA’s Economic Injury Disaster Loans, which provide low-interest emergency working capital to help

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IRS Announces New Extended Tax Deadline for Individuals

March 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. Individual taxpayers can also postpone federal income tax payments for the 2020 tax year due on April 15, 2021, to May 17, 2021, without penalties and interest, regardless of the amount owed. This postponement applies to individual taxpayers, including individuals who pay self-employment tax. Penalties, interest, and additions to tax will begin to accrue on any remaining unpaid balances as

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Maryland Extends State Income Tax Filing Deadline to July 15th

Maryland Comptroller Peter Franchot today announced that he is extending the state income tax filing deadline until July 15, 2021. No interest or penalties will be assessed if returns are filed and taxes are paid by the new deadline. The extension, which applies to individual, pass-through entity, fiduciary, and corporate income tax returns with due dates between January 1 and July 15, 2021, inclusive, including first and second quarter estimated payments, is due to recent and pending legislation at the state and federal levels that impact 2020 tax filings and provide economic relief for taxpayers harmed by the COVID19

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PPP 2.0 Is on Its Way!

While the full text of the legislation has not been released at the time of this article, House Republicans on the Small Business Committee have unveiled details on who might qualify for the new PPP loans and details on what expenses could be forgiven. The Progressive Caucus Center also released details on the proposals, although it is possible that some of the details could change in the final text of the legislation or before Congress votes on the package and sends it to President Trump for his signature, with about $284 billion earmarked for the PPP program The roughly

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COVID-19 MillerMusmar CPAs Office Hours

Dear Clients & Friends: The health and safety of our MillerMusmar team and our client base is our top priority. With the COVID-19 virus having an increasing impact on our community, we want to let you know how our business is addressing this situation. Effective Monday, December 14, 2020 pm we are making the following adjustments: Our offices will be closed to visitors All upcoming in-office scheduled meetings will need to be canceled or converted to a virtual meeting format. You will be contacted to make alternative arrangements.  Many of our staff members will be working remotely and can

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SBA Issues Extensive Final Rule Revising Several Small Business Contracting Regulations

On October 16, 2020, the SBA issued an extensive final rule that makes numerous revisions and clarifications to the small business procurement regulations.  This article provides a high-level overview of some of the most significant changes implemented by the new rule, and we will provide further analysis of these changes over the coming weeks. Most provisions of this final rule will take effect on November 16, 2020.   Changes to the SBA’s Mentor-Protégé Program Merged the 8(a) Mentor-Protégé Program into the All Small Mentor-Protégé Program. This resulted in the update or removal of references to the former 8(a) Mentor-Protégé

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PPP Loan Forgiveness FAQ

  PAYCHECK PROTECTION PROGRAM Frequently Asked Questions (FAQs) on PPP Loan Forgiveness   As of August 4, 2020 The Small Business Administration (SBA), in consultation with the Department of the Treasury, is providing this guidance to address borrower and lender questions concerning forgiveness of Paycheck Protection Program (PPP) loans, as provided for under section 1106 of the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), as amended by the Paycheck Protection Program Flexibility Act (Flexibility Act). Borrowers and lenders may rely on the guidance provided in this document as SBA’s interpretation, in consultation with the Department of the

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New Proposed PPP Legislation HEALS Bill

On July 27, U.S. Senators Marco Rubio (R-FL) and Susan Collins (R-ME) introduced the Continuing Small Business Recovery and Paycheck Protection Program Act, which is part of the larger $1 trillion GOP-proposed HEALS Act. If enacted, this bill would provide a second round of PPP loan funding for certain small businesses, expand the scope of eligible and forgivable expenses, create an automatic forgiveness process for those with PPP loans of less than $150,000 and a streamlined process for those with loans between $150,000 and $2 million, and expand PPP loan eligibility to certain entities that are currently excluded. Highlights of

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2020 depreciation limits for cars and trucks are issued

The IRS on Wednesday issued the limitations on depreciation deductions for passenger automobiles first placed in service in 2020 and the amounts of income inclusion for lessees of passenger automobiles first leased during 2020 (Rev. Proc. 2020-37). For these purposes, passenger automobiles include trucks and vans. The amounts in the revenue procedure are inflation-adjusted as required by Sec. 280F(d)(7), using the automobile component of the chained consumer price index for all urban consumers (C-CPI-U). For passenger automobiles to which the Sec. 168(k) additional (bonus) first-year depreciation deduction applies and that are acquired after Sept. 27, 2017, and placed in

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