It’s Not Too Late To File 2020 Taxes. Contact Our Fresno CPA Firm For HelpPosted on April 30th, 2021
If you missed filing your 2020 state and federal income taxes by April 15 and are worried about late filing, you’re in luck. The IRS extended the filing deadline to May 17, 2021 this year due in part to the coronavirus pandemic, in part to the flurry of stimulus payment processing that went on in March, and in part to the changes that were enacted as a result of the American Rescue Plan. California also extended its filing due date to May 17 to match the IRS date.
State and federal tax filing and taxes owed are due on this date, although there is still an option to request an extension to October 15, 2021, but that request must be made by May 15, 2021.
If you still need to file your 2020 taxes or need help planning for 2021, contact Gill & McAvoy, LLP Fresno CPA.
Estimated Filings Still Due On Schedule
Most filers are able to take advantage of this extended deadline and file their 2020 taxes by May 17 with no penalty. However, even though the 2020 income tax filing deadline has been extended, anyone who pays estimated taxes throughout the year must still pay their 2021 Q1 estimated taxes by April 15. Additional due dates for estimated filings are: June 15 and Sept 15, 2021, and January 18, 2022.
Use E-File To Obtain Refunds Quickly and Protect Against Fraud
If you are owed a refund, e-filing your taxes and opting for direct deposit is the quickest way to receive your refund. Filing your taxes early is the best way to protect against identity theft and fraud. Many filers don’t realize they have become a victim of identity theft until they file their taxes and find that they cannot be processed due to someone having already filed under their Social Security Number. Visit the IRS Taxpayer Guide to Identity Theft to learn more about protecting your information as a taxpayer.
Tax Breaks For Unemployment Benefits
The American Rescue Plan included a tax break for those who received unemployment benefits in 2020. The first $10,200 (single filer) / $20,400 (married filing jointly) of unemployment benefits received in 2020 are not subject to federal income tax for households making less than $150,000 in 2020. If you filed your 2020 taxes before the bill was passed and would have qualified for this tax break, the IRS should be recalculating your return and will begin sending out refunds to those who were affected by the change in May.
Meet a Fresno CPA to Understand Your Tax Situation
2020 was an unusual year in almost every way; taxes included. If you are having trouble making sense of your 2020 taxes or need help planning for 2021, contact Gill & McAvoy, LLP Fresno CPA to discuss your situation. We can assist with tax filing, tax planning, and other financial matters to help you navigate 2021.
Schedule an appointment with a Fresno CPA by calling (559) 412-4100, emailing us at email@example.com, or filling out our online form.
Questions About Business Investments? Get Answers From a Gill & McAvoy, LLP CPA in FresnoPosted on March 30th, 2021
The last year has been anything but certain. We saw wild uncertainty in nearly every facet of the economy at one time or another. The markets were erratic across the world and what seemed to be safe investment strategies didn’t always pan out that way. It was more complicated than ever to feel confident in making sound business investments.
The single most important piece of advice our CPAs in Fresno have provided to our clients this year regarding their investments is the reminder that market uncertainty is the only certainty.
It helps to maintain perspective in uncertain times. Our perspective is that there will always be risk and uncertainty with investments. Our global economy means that markets react very quickly to not only business performance but natural disasters, political unrest, leadership changes, interest rates, pandemics…the list goes on and on. The point is markets are always subject to fluctuation and uncertainty but pulling out of your investments and going to cash or putting it all in bonds is not a viable long-term growth solution for most businesses or individuals.
The best strategy for dealing with this uncertainty is to undertake frequent reviews of your investment portfolio to ensure your assets are diversified and as protected as possible from market fluctuations and that your investment strategy still works for you and your business at this point in your life. Our CPAs in Fresno can help you with all of this.
Protect Business Investments With Help From Our CPAs in Fresno
We recommend annual portfolio reviews at a minimum to ensure your investment strategy still supports your business goals. Tax-time is the perfect time to review your investment portfolio. You’ll have a clear picture of your business’ worth and investment performance over the past year and will be in a prime position to be thinking about your business’s future.
Schedule some time to meet with a Gill & McAvoy, LLP CPA in Fresno to review your investment portfolio by calling (559) 412-4100, emailing us at firstname.lastname@example.org, or filling out our simple online form.
COVID-19 Challenges Remain in 2021, Count on Our Fresno CPA Firm for Business AdvicePosted on March 2nd, 2021
COVID-19 vaccines are slowly rolling out, and hope is on the horizon, but the challenges presented by the pandemic won’t be resolved quickly. 2021 will still be a tough year for many businesses and will require strategic decision-making to weather another challenging year. Our Fresno CPA firm is here to help business owners navigate these changes and challenges.
4 Areas of Impact Due to COVID-19
This is broad agreement on just one thing: business will look different in 2021 and perhaps for many years beyond. How can your business prepare for these changes?
- COVID-Related Expenses. Many businesses are taking on additional costs to protect customers and employees from COVID-19 spread. Costs range from equipment costs to training costs to new technology. Your Fresno CPA can help you determine how to classify these costs in your financial reports. Some costs will qualify as simple expenses, while others may qualify for capitalization.
- Internal Controls. Remote work has heightened the risks of data breaches and cybersecurity threats. A review of your internal control systems can reduce this risk and ensure appropriate controls are in place for current business operations.
- Financial Forecasts. Forecasting has been a challenge for many businesses this past year. Traditional forecasting may not work for your business. Quarterly check-ins with one of our Fresno CPAs can help better align financial forecasts with the current situation so you can develop more accurate estimates of future cash flow and your ability to meet expenses.
- Inventory Adjustments. Some businesses like restaurants and retail may need help with inventory valuation and accounting for inventory loss or adjustments. Even as communities open back up, there may be a lag in discretionary spending that affects business inventory levels, or businesses may experience a surge in returns for products purchased online. 2021 shopping habits might also provide a glimpse into consumers’ future shopping habits, which businesses can use to plan for the coming months and beyond.
Meet With a Fresno CPA to Discuss Your Business Challenges
Every business is facing unique challenges right now. Meet with a Gill & McAvoy, LLP Fresno CPA to make sure your business is set up to navigate those challenges.
Call (559) 412-4100 or contact us online to discuss your business needs.
New Administration, New Tax Policies: Meet With A Gill & McAvoy CPA in Fresno to Plan 2021 TaxesPosted on January 21st, 2021
The 2020 election and special Georgia Senate election have been decided, resulting in Democratic control of the White House and both houses of Congress. The COVID-19 pandemic is still running wild, and there is talk of additional stimulus payments and business protections coming soon. Given these factors, our CPAs in Fresno expect some to see some tax law changes in addition to changes that are already planned.
Biden’s Campaign Promises
Joe Biden campaigned on repealing parts of the Tax Cut and Jobs Act (TCJA), raising certain tax rates, and increasing the capital gains tax, among others. As the pandemic raged on, Biden added new tax cut proposals to his plan. Highlights include:
- Restore the individual income tax rate of 39.6% for filers earning over $400,000. This is an increase from 37% under TCJA.
- Impose a 12.4% Social Security payroll tax for wages above $400,000.
- Increase the corporate income tax to 28%.
- Increase the capital gains tax to 39.6% on income above $1 million.
- Temporarily increase the Child and Dependent Care Tax Credit from $3,000 to $8,000 ($16,000 for multiple dependents).
- Increase the Child Tax Credit (CTC) from $2,000 to $3,000 and provide a $600 bonus credit for children under 6. Make the CTC fully refundable, removing the $2,500 reimbursement threshold and 15 percent phase-in rate.
Even before taking office, Biden unveiled a $1.9 trillion stimulus plan aimed at shoring up the economy and providing funding for COVID-19 vaccination programs. The plan includes $1,400 in direct payments to families, additional unemployment benefits, federally mandated paid leave for workers, and child care cost subsidies.
Thus far, none of the COVID-19 stimulus payments to individuals and families have been taxable; there is no reason to expect any potential 2021 stimulus payments to be taxed as income either.
While none of these proposals have been voted on or approved at this time, they do provide an indication that we can expect tax changes in the coming years, perhaps as early as the 2021 tax year. As the year progresses, your Gill & McAvoy, LLP CPA in Fresno will keep tab on changes and keep you informed, but in the meantime, if you have any questions or concerns about your 2021 tax outlook, contact our CPAs in Fresno to discuss your personal tax situation.
We work with businesses and individuals to ensure they are taking advantage of all of the tax benefits available to them while still fulfilling their tax obligations and navigating the current COVID-19 economy.
Contact us by calling (559) 412-4100 or connecting online via the client portal.
Don’t Play a Guessing Game, Meet With a Fresno CPA to Plan For 2021 Business NeedsPosted on December 30th, 2020
2020 is almost behind us. COVID-19 vaccines are arriving, and many people are breathing a sigh of relief and starting to feel hopeful about 2021. For business owners who have been hard-hit by the pandemic, the changes couldn’t be more welcome. However, we aren’t out of the woods yet, and if 2020 has taught us anything, it is that we must be prepared for the unexpected.
If you are a business owner, you’re no doubt looking ahead to 2021, wondering what the year will bring and how you will move on after 2020 and the changes it brought to your business, good or bad. A Fresno CPA from Gill & McAvoy, LLP can help you decide where you go from here.
Business Planning Benefits Thriving and Struggling Businesses
This is not the time to play it by ear or take a wait and see approach. Developing a solid 2021 business plan based on your current situation can help you navigate whatever comes your way in the next year.
If your business did well in 2020, a business plan could help you decide where to reinvest profits, reward employees, expand your business, or protect assets from tax obligations.
If your business struggled, this is your chance to examine year-end data to see exactly where those struggles occurred and how they affected the business. Together with your Gill & McAvoy, LLP Fresno CPA, you can develop a strategy going forward that identifies opportunities for business growth, business assistance, and/or tax savings.
Eliminate Risk and Maximize Opportunity With Help From a Fresno CPA
2020 has proven that just because a certain way of doing business worked in the past does not mean it will work in the future. Don’t put your business at risk by planning the same approach as in years past. Use this time to examine your data, develop a plan, and pivot or expand your business for greater success in the future.
You don’t have to do it alone. The Fresno CPAs at Gill & McAvoy, LLP are here to help you make sense of your situation and develop a plan for the future. Contact us by calling (559) 412-4100 or connecting online.
Year-End Tax Planning Starts Now. Meet With a Fresno CPA To Get StartedPosted on December 9th, 2020
The 2020 tax season is going to be a challenge for millions of people. Not only has the COVID-19 pandemic affected businesses and individuals, we are still seeing some new tax laws go into effect as a result of the 2017 Tax Cuts and Jobs Act (TCJA) changes. Muddying the waters even further for certain tax filers are changes in job status, income earned, and the different stimulus programs that were made available this year (CARES, SECURE, etc.). There’s even a possibility that more tax breaks or deductions could be implemented before years end.
Meeting with a Gill & McAvoy, LLP Fresno CPA now can help you prepare for 2020 tax filings and 2021 tax planning based on your current income and employment situation. Tax strategies that worked for you in the past, may no longer be as effective. We can help you find the best tax saving strategies for your current situation.
Below are some examples of tax-saving strategies that could benefit you this year and in 2021.
Consider Your Deductions
The TCJA nearly doubled the standard deduction for all filing statuses – and those amounts are set to be adjusted for inflation every year through 2025. In addition, any item that used to qualify as deductions are no longer eligible. That means taxpayers should closely examine whether to itemize or take the standard deduction for the biggest tax savings. Be sure to look at qualified state and local tax deductions and home-related deductions for the full picture.
Track Your Donations
Thanks to the CARES Act, charity donations have been adjusted for 2020. Generally, donations are not tax-deductible unless you itemize. However, the CARES Act allows even those who take the standard deduction to claim up to $300 of cash to donations of qualified charities in 2020.
Contribute to HSAs and FSAs
Health Savings Accounts (HSAs) and Flexible Spending Accounts (FSAs) can act as money-saving, tax-reduction vehicles in addition to healthcare savings accounts. Since contributions are made pre-tax, they reduce your taxable income. HSAs are similar to IRAs, bearing interest, growing tax-deferred, and rolling over from year to year, providing you with both access to funds for medical expenses and a personal savings vehicle. FSAs typically do not roll over from year to year, but if you know you will have medical expenses in the coming year, they are a smart way to reduce your taxable income while saving for anticipated medical expenses at the same time.
Identify Tax-Saving Strategies With Help From a Gill & McAvoy, LLP Fresno CPA
These are just three examples of tax-saving strategies that can still be employed in 2020 or can be enacted for tax savings in 2021. There are many more tax reduction and tax savings strategies that might apply in your situation, including child and dependent care credits, 529 plans, education credits/deductions, and more.
Explore Your Business’ COVID-19 Relief Options With a Fresno CPAPosted on November 9th, 2020
As federal stimulus talks continue to stall, states are stepping up to expand relief options for businesses affected by the COVID-19 pandemic; California is no exception. Our Fresno CPA firm has been busy meeting with small and mid-sized business owners this fall, helping them to understand their financial situations better and explore relief options that are available through the state of California. Below, we share a few of the assistance or relief options that were available to California business owners as of mid-October.
- Pandemic-Related Tax Relief. Both individuals and small businesses can obtain some tax relief. The California Earned Income Tax Credit, and Young Child Tax Credit are available to taxpayers who do not have an Individual Taxpayer Identification Number (ITIN) and can be applied for their 2020 individual tax returns. Small businesses may be eligible for:
- Interest-free deferrals of sales/use taxes up to $50,000.
- A $1,000 tax credit for new employees.
- The exclusion of forgiven Paycheck Protection Program loans from their state gross income.
- Federal tax credits for COVID-19-related employee paid leave.
- $25 Million Has Been Made Available for Small Business Loans. The California Infrastructure and Economic Development Bank has made the funds available through the California Rebuilding Fund, which is tasked with making loans to California Community Development Financial Institutions so those institutions can provide small business loans.
- Small Business Loans. $50 million has been added to the Small Business Disaster Relief Loan Guarantee Program, and an additional $50 million has been added to the Small Business Loan Guarantee Program.
- Debt Relief for SBA Borrowers. The Small Business Association will pay 6 months of principal, interest, and any associated fees for qualified existing borrowers. Program requirements can be found here.
- Small Business Center Assistance. State-supported small business centers remain open to provide free counseling and one-on-one assistance from a local advisor who can help small business owners secure loans, explore funding options, and more.
- Commercial Renter Protection. On September 23, 2020, Governor Newsom extended an order authorizing local governments to halt evictions of commercial renters through March 31, 2021.
Meet With a Fresno CPA at Gill & McAvoy, LLP To Protect Your Business
Our Fresno CPAs can help you make sense of relief programs, debt burdens, and the financial repayment programs that you may be considering to keep your business afloat as the pandemic drags on. Contact us to discuss your business’s financial health, gain a better understanding of the relief options available to you, or how any relief options you have already obtained are affecting your business.
Your CPA in Fresno Remains Your Best Source For COVID-19 Related Tax and Business AdvicePosted on November 5th, 2020
COVID-19 is still making life difficult in California and throughout the country. As businesses grapple with the ongoing challenges, we’d like to remind you that the Gill & McAvoy, LLP team is here to help you. Meet with a CPA in our Fresno office to discuss business strategy or receive tax advice based on your current situation. We are also available to help you navigate the many different state and federal relief programs available to businesses.
New Bills Supporting California Businesses Passed in September
In early September 2020, Governor Newsom signed three bills into law, two of which are intended to help small businesses during the pandemic. The third is intended to stimulate construction projects.
- AB 1577 allows small businesses to exclude Paycheck Protection Program (PPP) loans that were received via the CARES Act and subsequent amendments from gross income for state taxes. This conforms state law to existing federal law.
- SB 1447 authorizes a $100 million Main Street hiring tax credit program for small businesses. The credit is equal to $1,000 for each net increase in qualified employees and caps out at $100,000 for each qualified employer.
- SB 115 accelerates $230.5 million in state bond funding to help jumpstart construction projects.
Small businesses remain the most severely affected by COVID-19 closures and restrictions. In California, small business owners employ nearly half of the state’s private-sector workforce. Numerous programs have been created this year to help alleviate the economic strain COVID-19 has put on small business owners. Many programs are still available. A full listing of programs supporting California small businesses can be found here.
Meet With a CPA at Fresno-based Gill & McAvoy, LLP For Personalized Advice
Not only have COVID-19 restrictions affected businesses differently, but the financial health of every business was also different before the pandemic. Some businesses have been better able to weather this year’s challenges than others. Others have taken action to adjust their operations and business plans to stay afloat during this time.
If you are a small business owner struggling to find relief, need help adjusting your business plan, would like some tax advice or could use some guidance as to all of these many relief programs available, contact us.
Talk to a CPA in Fresno, CA for COVID-19 Related Business Tax AdvicePosted on June 29th, 2020
A number of stimulus packages and tax changes have been made this year to help businesses navigate the economic havoc created by the COVID-19 pandemic. Consult one of our CPAs in Fresno, CA, for advice or guidance on any of the following COVID-19 related business tax changes.
Eight Business Taxes Changes and Credits That Have Been Affected by COVID-19
- Employee Retention Tax Credit (ERTC). ERTC is a new tax credit that is intended to help businesses keep employees on the payroll. Eligible businesses can receive a refundable 50% tax credit on wages up to $10,000 per employee.
- Tax Credit For Sick And Family Leave. Businesses that have less than 500 employees and had to provide paid sick leave/family leave to employees, specifically because of the coronavirus can be reimbursed for those expenses at 100% of the amount paid out for leave. The reimbursement takes the form of a quarterly tax credit.
- Delayed Payroll Tax Payments. Under the CARES Act, businesses and the self-employed can defer their payroll tax payments and pay them over the next two years, with 50% being paid by the end of 2021 and the remainder being due by the end of 2022.
- Charitable Gift Deductions Expanded. Deductible charitable contributions made by corporations have been increased from 10% to 25% of the corporation’s taxable income.
- Net Operating Loss Changes. Net Operating Losses (NOLs) sustained in 2018, 2019, or 2020 can now be carried back up to 5 years at 100% or forward up to 20 years but are subject to an 80% limit. This change is intended to help cash flow and liquidity.
- Business Loss Deduction Changes. The $250,000/$500,000 cap on business losses on individual/couple returns has been suspended under the CARES Act. The suspension affects 2018 through 2020 returns. An amended return can be filed to receive a refund.
- Interest Deductibility Changes. Businesses can deduct up to 50% of their adjusted taxable income business interest expenses for 2019 and 2020, an increase from 30%.
- Facility Improvement Write-Offs. Costs associated with interior improvements to non-residential buildings can be written off immediately by businesses and commercial property owners, providing more liquidity to the business. Changes affect the tax year 2018 to the present.
Speak With A Gill & McAvoy, LLP CPA in Fresno, CA For More Business Tax Advice
If your business has taken advantage of any of these services or if you need help navigating the tax implications that COVID-19 has created for your business, contact a Gill & McAvoy, LLP CPA in Fresno, CA for help.
Call (559) 412-4100 or contact us online.
Why Consulting A Fresno CPA Makes Sense In The New COVID-19 Business EnvironmentPosted on June 1st, 2020
The COVID-19 pandemic has affected nearly everyone, upending lives all around the world. California was one of the first states to enact quarantine measures and stay-at-home orders, and as soon as it did, our Fresno CPA firm got busy helping clients navigate this new reality. What these clients realized was how helpful it would be to talk to their CPA about their situations.
COVID-19 Related Services Available At Our Fresno CPA Firm
Business owners and individuals alike have questions regarding their finances during this outbreak, and there is no better resource for getting answers than your CPA. Here are a few examples of the services we have been providing to our clients lately.
- Small Business Employment Issues. The Small Business Administration (SBA) offers a variety of Coronavirus Relief Options to help small businesses during this time. The process can be frustrating and confusing on your own. Our CPAs have been busy helping clients navigate the application process and understand the requirements that come with any program they participate in.
- Stimulus Payments. As stimulus payments start hitting bank accounts, clients have a lot of questions about whether they will have to pay the money back or will owe taxes on it. For the record, the answer to both questions is No. Check out this article for more answers to common questions about the stimulus payments.
- Cash Flow Analysis. Some of our clients were immediately affected by the pandemic, and others are worried about the future. A cash-flow analysis can help business owners and families understand how to manage revenue and expenses, identify opportunities for new revenue, or evaluate the need for financing or lines of credit.
- Tax Planning. Estimated income tax payments, unemployment claims, changes in income, or worker status can all affect your 2020 tax bill. Our tax planning services can help you understand and plan for the tax impact any of these changes so you can make adjustments.
- Tax Preparation. The income tax deadline has been extended to July 15 this year. That means we are still helping clients file their taxes and plan for the year ahead. Professional tax preparation can help identify credits and deductions you may have been unaware of, minimizing your tax burden and boosting your refund.
We Are Here To Help
Every financial situation is different. If you need help navigating the financial changes brought on by the COVID-19 outbreak, contact Gill & McAvoy, LLP, and speak to one of our Fresno CPAs. We are here to help you with all aspects of personal and business tax and financial planning.
Call (559) 412-4100 or contact us online to get started.