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June 07, 2021 | Posted in:

Summer 2021 Tax Deadlines and IRS News

Taxpayers should mark their calendars and consult with their CPA and advisors on the following deadlines.

Upcoming Deadlines:

June 15

– Second quarter 2021 individual estimated tax payments are due.

July 31

– Due date for filing 2020 retirement or employee benefit plan returns (5500 series) for calendar year plans.

September 15

– Third quarter 2021 individual estimated tax payments are due.

– Extension deadline for 2020 S-corporation and partnership returns.

 

More IRS News and Updates:

Business meals 100% tax deductible

To help restaurants during the pandemic, a new law allows for 100% meal expense deductions for both 2021 and 2022. Business meals are defined as those where an owner or employee is present and a business discussion takes place.

The deductible meal must be purchased at a business that prepares and sells food or beverages for immediate consumption, not at a store. While entertainment expenses are not deductible, say tickets to a baseball game, food purchased there could qualify, as long as it’s purchased separately.

Travel meals qualify as long as the travel is for business purposes and the taxpayer or employee of the taxpayer is present.

 

Child/dependent care credit increased

The new American Rescue Plan Act provides a credit just for having children aged 17 or younger. It also increases the amount that can be applied to help pay for daycare, after school programs and summer camp

Eligible taxpayers can claim qualifying child and dependent care expenses of up to $8,000 for one qualifying child or dependent, or $16,000 for two or more qualifying dependents.

Depending on your income, the amount of the credit can be up to 50%. This means that the maximum credit in 2021 is $4,000 for one dependent, or $8,000 for two or more dependents.

 

PPP Loan Forgiveness

The original PPP loan program is now in forgiveness mode. According to the SBA, PPP loan forgiveness is no longer a taxable event. You can apply for forgiveness once all loan proceeds have been used and you must do so within 10 months after the last day of your business’s covered period.

There are also new programs like the Shuttered Venue Operators and the Restaurant Revitalization Fund to help cover the cost of employees affected by the pandemic. Alloy Silverstein keeps our COVID-19 Resource Center updated with announcements and program changes. Visit www.AlloySilverstein.com/covid19.

Author:

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