Starting in July of 2021, qualifying families with children ages 17 and under will start receiving monthly child tax credit (CTC) payments from the Internal Revenue Service (IRS). The American Rescue Plan Act (ARPA) expanded the child tax credit when it was signed into law this spring. All the details haven’t been completely worked out, so we will keep this blog post updated as more information is available.

As it stands right now, here are the important points to be aware of: Read More >>

Alternative minimum tax (AMT) is essentially a base-level percentage an individual taxpayer or S-corporation must pay the IRS, regardless of the credits and deductions they are entitled to. Contractors need to be especially mindful of AMT, as it can have a major effect on tax liability.

Long-Term Contracts and AMT

When reporting regular tax calculations, contractors that have average gross receipts under $25 million are able to account for their long-term contracts us Read More >>

Filing income taxes when you are self-employed can present a different set of considerations and challenges than working for an employer. Planning ahead and staying organized will help you stay on top of your tax responsibilities while you build your business.

Am I Considered Self-Employed?

The IRS has three different categories for self-employed individuals:

  • Sole proprietor or independent contractor of a trade or business
  • Member of a partnership that carries on a tra
Read More >>
President Biden signed the American Rescue Plan into law Thursday, March 11, 2021. The $1.9 trillion economic stimulus plan contains a number of pieces of legislation aimed at supporting individuals through the continued Coronavirus pandemic.
Direct Payments
Stimulus checks are a big part of this latest bill. Individuals who earn less than $75,000 and married couples earning less than $150,000 will receive a direct payment of $1,400 per person. Additionally, for ever
Read More >>

Tax planning isn’t something that just comes around at the end of each year. To ensure your company is taking advantage of all available opportunities to lower your tax responsibility, consider the following as you plan for 2021:

  1. Research and Development Tax Credit
    While any qualifying activity must pass the four-part test (permitted purpose, technical uncertainty, process of experimentation and technical in nature), the Research and Development tax credit is applic
Read More >>

Charitable giving is appreciated at every level. Any time an individual gives, no matter the amount, it is a precious gift. Some donors may be in a position to give to a nonprofit they are passionate about. In this case, a donor advised fund (DAF) might be an effective way to maximize their gifts. Donor advised funds are charitable investment accounts established at a public charity to support charitable 501(c)(3) organizations and allow donors to take an immediate tax deduc Read More >>

Sending a thank you note after receiving a charitable gift to your nonprofit seems like a simple, but polite, way to recognize a donor. In reality, this acknowledgement is an extremely important piece of the donor/nonprofit relationship.

More Than Thank You

A thank you note is truly more than just a thank you. The IRS imposes recordkeeping and substantiation rules to both nonprofits and to donors.

Donors are responsible for obtaining written acknowledgment from a charity Read More >>

Chris Eichmuller, CPA, is a director at Corrigan Krause and the head of the tax department.

For many of us, 2020 was a year unlike any other. At Corrigan Krause, we are ready to help you get organized and guide you through tax season this year. Here are a few tips to help you get started:

1. Find a home for your documents.

Create a folder on your computer’s desktop to save your electronic documents to make it easier to send everything to your Corrigan Krause tax professional. If you’r Read More >>

Employee Retention Tax Credit

Back in March of 2020, The CARES Act granted eligible employers a credit, the Employee Retention Tax Credit (ERTC), against employment taxes equal to 50 percent of qualified wages paid to employees who are not working due to the employer’s full or partial suspension of business or a significant decline in gross receipts.

YOUR ACTION IS REQUIRED:

The recent passage of the Consolidation Appropriations Act, 2021 has created an opportunity for c Read More >>