Instructions to completing the EIDL Application

We’ve received numerous calls and emails about completing the EIDL Application with the SBA. Now that I’ve spent some time looking at the forms and limited instructions, I see why. Here are line by line instructions (based on my understanding of how they should be...

Practice Owner “To-Do List” Following the Passing of the CARES Act

Now that the CARES Act has been passed into law, now is the time to finalize your planning for this period of time that your office is temporarily closed and also for when the office reopens later this year. • Submit the paperwork with the SBA to receive the $10k EIDL...

Opportunities for Small Employers

The CARES Act focuses on helping small employers with less than 500 employees keep their doors open and retain their staff. Let’s first take a look at the forgivable loan being offered. Known as SBA 7(a) loans, the rules move the processing of these loans from the...

Penalty-Free Retirement Plan Distributions

Let me start by saying that retirement accounts for working people should be used only as a last resort. That being said, the CARES act includes a provision allowing you to withdraw up to $100k from your IRA or work Retirement Plan penalty-free if you are affected by...

Student Loan Forgiveness

The CARES Act includes a provision suspending payments and waiving the interest on any federal student loans through September 30, 2020. Please go online with your loan servicer to make sure that they are following through on this valuable break from paying these...

COVID-19 Stimulus Payments

In the Coronavirus Bill passed today by Congress, most adults will get $1,200 stimulus payments and do not need to file any type of application to get this relief. There is an income threshold, however. Single filers with an AGI of $75k or less will get the full...

Repost of ADA Article – CARES ACT Relief Bill

REPOST FROM ADA (American Dental Association): Senate passes CARES Act, 3rd COVID-19 relief bill Hello, Fellow Dentists: For the last few weeks, the American Dental Association has advocated on your behalf as federal lawmakers debate the best way to respond to the...

Filing Info & Relief For Individual Tax Payers

Update 3.27.2020 Massachusetts and New York have officially extended the tax deadline date to July 15, 2020 which matches the IRS extended deadline date. Read MA DOR Announcement Info for Individual Taxpayers: The IRS relief provisions resulting from COVID-19 might be...

Practice Loans-Relief from Lenders

We reached out to our network of lenders to see what they plan to offer as relief to Practice owners. Here’s a sampling of what they said. – Official announcements will be coming directly from the lenders shortly. For any existing clients, our solutions range...

SBA Disaster Assistance in Response to the Coronavirus

Last week, we posted information and a link to a Small Business Recovery Loan offered by MA Growth Capital Corporation at: https://www.schwartzaccountants.com/2020/03/practice-small-business-recovery-loan/. It turns out that program was woefully underfunded and...

Unemployment FAQS

We recently posted information and links regarding some of the rules for practices that need to shut down temporarily and have their staff (and themselves) collect unemployment. The Mass Dental Society put out a great memo on Staffing Considerations in Connection with...

Two New Refundable Payroll Tax Credits

Treasury, IRS and Labor announce plan to implement Coronavirus-related paid leave for workers and tax credits for small and midsize businesses to swiftly recover the cost of providing Coronavirus-related leave IR-2020-57, March 20, 2020 WASHINGTON — Today the U.S....

Practice Owners-Small Business Recovery Loan

There’s a small business recovery loan being offered to small businesses to help with cash flow during closures.   This is being offered by MA Growth Capital Corporation. https://www.empoweringsmallbusiness.org/what-we-offer/emergency-loan-funds/covid-19-loan-fund...

Payroll – What To Do For Employers

The COVID-19 pandemic is a fluid situation and we are trying our best to keep our clients informed as new information is released. GUIDES: Mass Dental Society – Temp Office Closing Guide How to file for Unemployment MA1 How to file for Unemployment MA2 ADVISE...

The IRS is Getting Serious About Virtual Currency Transactions

By Andrew D. Schwartz CPA When the IRS adds a check box on Schedule 1 of the personal tax return asking: At any time during 2019, did you receive, sell, send, exchange, or otherwise acquire any financial interest in any virtual currency? …you know they mean...

IRS Issues Standard Mileage Rates for 2020

FROM IRS NEWS: IR-2019-215, December 31, 2019 WASHINGTON — The Internal Revenue Service today issued the 2020 optional standard mileage rates (PDF) used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes....

Check Out The New W4 Form

By Andrew D. Schwartz CPA After decades of misleading all but the most straightforward of taxpayers, the W4 form has been replaced with a new W4 form. This is the form you fill out with your employer when you start working that determines the rate you will have...

Upper Limits on Conforming Mortgages Increasing for 2020

By Bob Cahill, Leader Bank Big changes for 2020! The Federal Housing Finance Agency announced the conforming limit for one to four unit properties is increasing.  For a complete list by states/counties please click here. Investopedia defines Conforming Loans as: What...

2019 and 2020 Tax Facts

For 2019, the standard deduction for a single individual is $12,200 and for a married couple is $24,400. A person will benefit by itemizing once allowable deductions exceed the applicable standard deduction. Itemized deductions include state and local income taxes (or...

Cyber Security Lesson for Your Kids

Here’s one more New Year’s Resolution you might add to your list: Training your children to be aware of internet/online security or cyber security. As many are aware, cyber security is the protection of assets and data from electronic attack. This includes...

RE: 2020

Personal financial planning is an ongoing process.  The good news is that financially speaking, 2019 was another really good year. The stock markets once again hit all time highs.  Real estate prices around the country continue to increase.  And interest rates and...

Tax and Financial Planning Calendar for January 2020

Month Income Taxes Saving and Investing JANUARY 4th quarter 2019 estimates due 1/15/20 Expect to receive W-2s and 1099s by January 31, 2020 Review your withholdings for 2020, and, if necessary, file a new W-4 Form with your employer to adjust your withholding Prepare...

Checklist to Cut Your 2019 Taxes

It’s not too late to cut your 2019 tax bill.  Prior to Dec. 31st: Increase your 401(k) and 403(b) contributions if you haven’t been contributing at the maximum rate all year. If you’re self-employed, consider setting up a Solo 401(k) by 12/31. Take a look...

New SSN Scam

Scammers are at it again, this time calling up taxpayers, impersonating the IRS, and threatening to suspend or cancel social security numbers. According to the IRS, these calls can come in as “robocall” voicemails, requesting people to call back. The scammers may...

IRS Gets Serious About Cryptocurrency

Have you been dabbling in cryptocurrency trading? The IRS is stepping up its efforts to provide guidance to taxpayers around cryptocurrency transactions and has enacted some new compliance measures. On 2019 tax returns, the IRS will require taxpayers to check off a...

Gifting Rules

Does part of your family’s financial planning include gifting? If so, here are a dozen tips to follow: Annual gift exclusion is $15,000 per year by an individual to another individual, or Annual gift exclusion is $30,000 per year gifted jointly from a married...

Benefits of small business owners of hiring family members Part II:

Consider adding your teenage children onto your company payroll. If you are self-employed and have children that are old enough to work, consider adding them onto your company payroll.  There are several tax benefits and opportunities for income shifting within the...

IRS Announces Higher Retirement Plan Limits for 2020

Most working professionals have access to a 401(k) plan or a 403(b) plan at work.  Amounts contributed to these plans generally reduce your taxable earnings and always grow tax deferred.  You can contribute up to $19,500 into a 401(k) or 403(b) plan through salary...

Review of the 2019 Rules for Itemizing Your Deductions

Medical Expenses For 2019, medical expenses are deductible to the extent they exceed 10% of your Adjusted Gross income (AGI). The IRS also allows a deduction of 20 cents/medical miles driven so don’t forget to track your medical mileage. Planning Opportunity:  Check...

Benefits of small business owners of hiring family members – Part I:

Consider hiring your spouse as your company’s first employee.  For many taxpayers beginning a new business, there are always concerns and questions about decisions to be made.  How to finance the new endeavor, where to locate the office, and who to choose as the right...

Social Security Max Increases to $137,700 For 2020

by Andrew D. Schwartz CPA Most years, the government bumps up the maximum Social Security taxes that you can pay.  For 2020, the maximum wage base jumps to $137,700, an increase of $4,800, or 3.6%, over the max of $132,900 that was in place for 2019. At a rate of...

Tax and Financial Planning Calendar for November 2019

Month Income Taxes Saving and Investing NOVEMBER Need to make applicable elections in connection with employer’s flexible spending account Good time to make semi-annual donation of clothing and household items to charitable organizations.  Don’t forget to...

IRS Releases New Tax Gap Estimates

From IRS News IR-2019-159, September 26, 2019 The Internal Revenue Service released a new set of tax gap estimates on tax years 2011, 2012 and 2013. The results show the nation’s tax compliance rate is substantially unchanged from prior years. The gross tax gap...

Tax & Financial Planning Calendar for October 2019

Month Income Taxes Saving and Investing OCTOBER Tax returns on extension due 10/15/19 Find out how to complete your W-4 form correctly using the IRS’ On-line Withholding Calculator Taxpayers on extension must fund retirement accounts by October 15th 5500s for...

Game of Loans: Income Based Repayment Options vs Refinancing

Earlier this month, my firm hosted a live webinar in our Financial Boot Camp series titled “Game of Loans: Income Based Repayment Options vs Refinancing ” which was recorded and is now available online. According to the presenter Alex Oliver from First...

Tax and Financial Planning Calendar for September 2019

Month Income Taxes Saving and Investing SEPTEMBER 3rd quarter estimates due 9/16/19 “Calendar year” Corporate and Partnership tax returns on extension are due 9/16/19 SIMPLE/IRAs and Safe-Harbor 401k’s need to be set up by 10/1 Back to school –...

Two Practical Personal Finance Lessons For College Students

by Andrew D. Schwartz CPA  (Originally written for the September 2016 newsletter.) Last week, my wife and I dropped off our older child at college to start his freshman year.  He is eager to spend the next four years taking classes in a variety of interesting subjects...

IRS Audit Rate Decreases in 2018

Continuing a downward trend from the past year, 2018 saw 7% fewer IRS audits of tax returns than the amount that were audited in 2017. 150 million personal tax returns filed for the 2017 tax year.  Of that amount 892,000 were audited representing only 0.59% of all...

2019 Tax Amount Updates

For 2018, the standard deduction for a single individual is $12,000 and for a married couple is $24,000. A person will benefit by itemizing once allowable deductions exceed the applicable standard deduction. Itemized deductions include state and local income taxes (or...

Making Estimated Tax Payments To Avoid IRS Penalties

by Richard S Schwartz CPA CVA If your tax situation may be changing this year as a result of receiving additional investment or consulting income that you were not expecting when you had met with your tax preparer last spring, you most likely will need to pay to the...

Tax and Financial Planning Calendar for August 2019

Month Income Taxes Saving and Investing AUGUST Returns on extension are no longer due 8/15.  For 2018, you have until 10/15 to file returns that have been put on extension. Work through a Tax Projection to avoid any surprises next winter, especially with the new tax...