Unlock Valuable Tax Savings: How to Qualify for the Employee Retention Credit (ERC) in 2023

You can do it now! Even though itʼs 2023, itʼs not too late to qualify for the employee retention credit (ERC). If you qualify and want your money, you must amend your 2020 and 2021 payroll tax returns. Sure, thatʼs a pain, but, if you have a dozen employees and qualify for maximum tax credits, you are looking at $312,000. That certainly nulliﬁes the minor pain of amending those payroll tax returns. And, youʼll also need to amend the business income tax returns for 2020 and 2021 to show the ERC as a reduction in payroll expenses for the qualifying years.3 Again, not hard—just a pain. How Do I Qualify? Assuming you aggregated ...

Act Now: Claim Your 2020 and 2021 Employee Retention Credit (ERC)

During much of 2020 and 2021, you may have qualiﬁed for the Employee Retention Credit (ERC). With the ERC, you found (or could ﬁnd) tax credits of up to $26,000 per employee. That’s a lot. With 10 employees, that’s $260,000. Key Point: If you have not claimed the ERC, you can amend your 2020 and 2021 payroll tax returns for the credit. (Amending the payroll is not difﬁcult—so no sweat on that score.) Three Ways to Qualify Decline in gross receipts (on a quarterly basis, by more than 50 percent in 2020 compared with 2019, and by more than 20 percent in 2021 compared with 2019) Government order that caused a full or partial ...

Don’t Miss Out on the Employee Retention Credit

Parts of this article are published with permission from Bradford Tax Institute, © 2021 Daniel Morris, Morris + D’Angelo Since the start of all the challenges that the COVID-19 pandemic brought to us with all of its mandates, many inconveniences, and I’m sure business anxiety, one thing is for sure; that your U.S. Government does not want your small business to fail. The U.S. Federal Government wants your small business to survive and likely thrive. Since COVID-19 struck, the government has created free and/or easy money in the form of tax credits and loans that are forgiven. The Employee Retention Credit (ERC) is one such perk for your ...

Say Goodbye to the ERC for the Fourth Quarter

Parts of this article are published with permission from Bradford Tax Institute, © 2021 Daniel Morris, Morris + D’Angelo Regarding the Employee Retention Credit (ERC): lawmakers giveth, and lawmakers taketh away. In this case, what lawmakers did is unfortunate. It’s like magic: now you see it, now you don’t. On March 11, 2021, the American Rescue Plan Act of 2021 became Public Law 117-2. This new law extended the ERC to the third and fourth quarters of 2021, as we wrote about in Don’t Miss Out on the Employee Retention Credit (August 2021). On November 15, 2021, the Infrastructure Investment and Jobs Act became Public Law 117-58 and ...

Loophole: Harvest Tax Losses on Bitcoin and other Cryptocurrency

Parts of this article are published with permission from Bradford Tax Institute, © 2021 Daniel Morris, Morris + D’Angelo You are not cheating when and if you use a loophole. The dictionary deﬁnes “Loophole” as a means of escape ... it’s a small opening to admit light and air or to permit observation. When it comes to tax losses on Bitcoin and other cryptocurrencies, you’ll ﬁnd in this article an escape from a tax-loss rule that does not allow you to deduct a tax loss. Yes, you read that right! The tax code has rules that don’t allow current deductions for tax losses. Background In past articles, I may have explained the ...