Category: Taxation-Individuals

Solar panel technology is nothing new. However, advancing technology and a concern for the environment created a wide push to adapt to more renewable energy sources. Many electric utility companies are developing or relying more heavily on wind farms, water-powered energy, and farms of solar panels. Some of them are offering credits to consumers for installing solar panels on their property and allowing them to buy any excess energy generated. As a car dealership, there are several benefits to converting… Read more ›

The 2021 advance child tax credit (CTC) payments, which were established under a recent law, will begin being made on July 15, 2021, the IRS announced. The tax agency also stated that “roughly 39 million households — covering 88% of children in the United States — are slated to begin receiving monthly payments without any further action required.” Background Taxpayers are allowed a child tax credit for each qualifying child. The credit was temporarily expanded and made refundable for 2021 by… Read more ›

President Biden recently announced his $1.8 trillion American Families Plan (AFP), the third step in his Build Back Better policy initiative. The announcement followed the previous releases of the proposed $2.3 trillion American Jobs Plan and the Made in America Tax Plan. These plans propose major investments in various domestic initiatives, such as expanded tax credits for families, offset with tax increases on high-income individual taxpayers and corporations. American Families Plan: Proposed tax changes for the wealthy The American Families… Read more ›

President Biden’s proposals for individual taxpayers were outlined in an April 28 address to Congress and in an 18-page fact sheet released by the White House. The “American Families Plan” contains tax breaks for low- and middle-income taxpayers and tax increases on those “making over $400,000 per year.” Here’s a summary of some of the proposals. Extended tax breaks – American Families Plan Extend the Child Tax Credit (CTC) increases in the American Rescue Plan Act (ARPA) through 2025 and… Read more ›

The IRS has announced that the federal tax filing deadline will be extended this year from Thursday, April 15 to Monday, May 17, 2021. New legislation that passed recently, which provides economic, tax and other relief from the pandemic, has created a complex tax filing season for individuals, businesses and tax preparers, leading to the extended deadline. The extension does not impact all tax deadlines, however. First-quarter estimated tax payments are still due April 15. Deadlines for state tax returns… Read more ›

On March 11, 2021, President Biden signed into law the American Rescue Plan Act (ARPA). The $1.9 trillion law is intended to provide far-reaching relief from the economic and other repercussions of the ongoing COVID-19 pandemic. In addition to funding for testing, contact tracing, vaccinations, education, and state and local governments, the ARPA includes extensive relief that could directly impact your finances. Recovery rebates Under ARPA Under the ARPA, many people will receive a third round of direct payments (which… Read more ›

The State of Maryland has extended the state income tax filing deadline from April 15 to July 15. The extension applies to individual, pass-through, fiduciary and corporate income tax returns, and is the result of economic relief-related legislation expected to impact 2020 state and federal tax filings. Read more in this March 11 press release published by the State of Maryland Comptroller’s Office.  For more information, contact CBM Tax Practice Director Richard Morris using our online contact form. Councilor, Buchanan… Read more ›

Congress has passed and President Biden has signed into law the latest legislation aimed at providing economic and other relief from the COVID-19 pandemic that has haunted the country for the last year. The 628-page American Rescue Plan Act (ARPA) includes $1.9 trillion in funding for individuals, businesses, and state and local governments. The ARPA extends and expands some of the critical provisions in the CARES Act and the Consolidated Appropriations Act (CAA). It also includes some new provisions that… Read more ›

In late February, Maryland Governor Larry Hogan signed The RELIEF Act of 2021, legislation which will provide up to $1 billion for stimulus payments, unemployment insurance, and grants and loans to individuals and small businesses in Maryland. The RELIEF Act will deliver the following in an effort to mitigate the impacts of the pandemic: One-time stimulus payments of $300 (individuals) or $500 (families) who filed for the Earned Income Credit in 2019. Qualifying Marylanders will have funds deposited directly into… Read more ›

The IRS often provides taxpayers with recommendations for preparing for the latest tax season. Based on a recent email Councilor, Buchanan & Mitchell (CBM) received from the IRS, we thought it might be valuable to share the following tips and advice. Get organized – Identify all the records you will need for tax season including any W-2s, 1099s, cancelled checks and other documents you’ve accumulated through 2020 related to your income, deductions or credits in one location. Organizational tools –… Read more ›