Good News: NJ’s Child and Dependent Care Tax Credit has Been Expanded!December 6, 2021
On Friday, December 3, 2021, Governor Phil Murphy took a giant step in supporting working families by signing S4065/A6071, the child and dependent care tax credit! The bill, passed unanimously on Thursday in both the Senate and the Assembly, will significantly increase access to the state tax credit for child care and increase the total …
NJ State Press Release: Governor Murphy Signs Legislation to Protect New Jersey Workers, Employers From Unlawful MisclassificationJuly 28, 2021
TRENTON – Building on his commitment to making sure that workers and employers in New Jersey are treated fairly, Governor Phil Murphy today signed a four-bill legislative package furthering state efforts to stop employee misclassification. Misclassification is the practice of illegally and improperly classifying employees as independent contractors. This practice deprives workers of the right to earn minimum wage and overtime, workers’ compensation, unemployment, earned …
Latest NJ Legislation NewsJuly 9, 2021
Below please find the most recent New Jersey legislation items outlined below. The first outlines the appropriation for the NJ Homestead Benefit program, the second discusses a new deduction for higher education expenses effective January 1, 2022, and the third discusses an updated deduction effective January 1, 2021, for an increased pension/retirement income deduction. NJ …
IRS Delays Start of Filing Season to February 12, 2021January 15, 2021
The IRS announced on Friday January 15, 2021 that the tax filing season would commence on February 12, 2021. On that date, IRS will start accepting and processing individual tax returns. The IRS needs more time to prepare because of the recent tax legislation that took effect in late December. The tax filing deadline at …
Additional 2020 Economic Impact PaymentsJanuary 4, 2021
You’ve probably heard that IRS will be making millions of ”economic impact payments” (also called ”recovery rebates”) in the near future to help people stay afloat during this time of economic uncertainty related to the COVID-19 crisis. These payments are in addition to the $1,200 payments ($2,400 for married couples) issued earlier in 2020. Here’s …
Deductibility of Business Meals Provided by Restaurants in 2021 and 2022January 4, 2021
You’ve probably heard that the recent stimulus legislation included a provision that removes the 50% limit on deducting business meals provided by restaurants in 2021 and 2022 and makes those meals fully deductible. Here are the details. In general, the ordinary and necessary food and beverage expenses of operating your business are deductible. However, the …
Consolidated Appropriations Act, 2021
AKA COVID-19 Relief PackageDecember 23, 2020
Congress passed the 5000+ page Consolidated Appropriations Act, 2021 on Monday, December 21, 2020. Here are some highlights of that bill. Please note this has not yet been signed by President Trump and could be subject to change. Additional 2020 Recovery Rebates – Additional 2020 stimulus payments of $600 per taxpayer and qualifying children. The …
Round Two of the COVID-19 Stimulus PlanDecember 22, 2020
Monday night Congress approved the new COVID-19 related stimulus package. A major development that many contractors have been anticipating, arrived for the holiday season. Under the Consolidated Appropriations Act, 2021 expenses paid with forgiven Paycheck Protection Program (PPP) loans are 100% tax deductible. Businesses who received funding under the Payroll Protection Program (PPP) will now …
New Jersey Pass – Through Business Alternative Income Tax ActOctober 27, 2020
Legislation was passed on January 13, 2020 establishing a pass-through business alternative tax (PTBAT). How Does It Work Starting in 2020, pass-through entities may elect to pay a PTBAT. Paying the tax is an annual election. The tax is based on each member’s share of distributive proceeds. Distributive proceeds mean “net income, dividends, royalties, interest, …
PPP Forgiveness Applications on HoldAugust 5, 2020
Paycheck Protection Program (PPP) borrowers who have completed their covered period and used their funds in line with the requirements for loan forgiveness will have to wait until at least August 10 to be able to submit a forgiveness application, pending economic stimulus legislation that will likely impact PPP forgiveness procedures. The Small Business Administration …