Accounting & Tax Services to fit your needs

Due to the recent tax law changes refunds are taking longer than normal. If you need an amendment due to the 2020 tax law changes we can help. Give us a call.

---

                                                              Important Updates

• Office hours are Monday through Thursday 9-5 and Friday 9-3. Others available by appointment. Updated CDC guidelines recommend that you wear a face mask if not vaccinated.  A mask is optional for those that are vaccinated. If you are not feeling well please stay home.
• Tax year 2020 Changes: The American Rescue Act has made changes to the taxability of unemployment income and the repayment of Healthcare Marketplace Insurance.  If you have already filed your 2020 income tax return the Internal Revenue Service will automatically process refunds for individuals who paid taxes on their unemployment benefits after May 17.  The State of Michigan is requesting that taxpayers amend their 2020 tax return to report the unemployment exclusion.
• Child Tax Credit Changes for 2021: The new Child Tax Credit is currently for 2021 only.  For families that qualify if under the income threshold, it will be a $3,600 credit for each child under age 6. For children ages 6 to 17, the credit is $3,000. Half of the credit will pay out monthly from July through December. In each of those months, the IRS will deposit the Child Tax Credit into taxpayers’ bank accounts - $300 for each child under age 6 and $250 for each child ages 6 to 17. The remaining half of the credit will then be an adjustment on the 2021 income tax return to be filed next year. For those that do not want the advanced payment and to report changes in income and dependents go to www.irs.gov/credits-deductions/advance-child-tax-credit-payments-in-2021.
• $1,400 Stimulus Payments: Most Americans will receive a $1,400 stimulus payment after March 16 if you meet income requirements.  If you have not received your stimulus payment by May 17 the IRS will do a sweep after this filing season to match updated 2020 income with the payments. Those that are owed additional amounts, because of the addition of a child or dependent, will get sent a second payment. 
• PPP loan forgiveness applications  Applicants have up to ten months to apply. The amount of loan forgiveness, if any, a PPP loan recipient may receive will depend on a variety of factors but will not exceed the loan principal amount plus accrued interest. Certain uses of the loan count towards how much is forgiven. Its important to know that the employees kept during this time may impact the amount forgiven.  Call us to discuss what is needed to process the applications. 
• Economic Injury Disaster Loan for businesses: There are funds available for the EIDL program. This loan provides economic relief to small businesses and nonprofit organizations that are currently experiencing a temporary loss of revenue. For more information go to www.sba.gov/funding-programs/loans/covid-19-relief-options/covid-19-economic-injury-disaster-loan.
• Payroll tax relief: The passage of the new stimulus bill has extended payroll tax relief until the end of the year. Do you have employees affected by Covid and they are required to self isolate or need to get the Covid vaccine?  Retention tax credits are available to help with emergency leave sick and family pay.  These credits can be used now to offset payroll tax deposits. Call us if you need assistance.
• ​Payroll Tax Deferral repayment to begin:  Employers had the option to defer withholding and payment of the employee's portion of the Social Security tax if the employee's wages during the period of September 1, 2020 thru December 31, 2020. If employers have deferred withholding and payment of employee social security tax, employers must pay the employer and employee Social Security taxes on wages and compensation between April 30, 2021 and December 31, 2021 and should make arrangements to collect the total social security taxes from the employee. If deferred taxes are not paid interest, penalties, and additions to tax will begin to accrue on January 1, 2022.

• Help for Renters and Landlords: The Eviction Diversion Program (EDP) is designed to keep Michigan residents who fell behind on their rent during COVID-19 in their homes. The program utilizes a special court process to get fast rental assistance for renters who have been impacted. Rental assistance in the amount of $50 million is available in the form of lump sum payments to landlords in exchange for allowing tenants to remain in their homes, forgiving late fees and up to 10% of amount due. For more information go to: www.michigan.gov/mshda/0,4641,7-141-5555-533463--,00.html
• Unemployment for those that are self employed: Self-employed workers, gig workers, 1099-independent contractors and low-wage workers can apply for federal benefits online at Michigan.gov/UIA. All newly eligible workers will need to provide proof of income to receive the maximum amount they are entitled. This could include W-2s, 1099 tax forms, and pay stubs. For more information go to www.michigan.gov/leo/0,5863,7-336-78421_97241_90031-523450--,00.html.

---

Integrity * Accuracy * Trustworthy

Allied Accounting Services has been providing total financial services to individuals and businesses for over 30 years. Professionalism and integrity encompasses everything we do. We help our clients so that their business’ financials are clear and straightforward. We stop and listen to client needs, questions and concerns.  We have experience in financial planning strategies to meet business’ current needs in a number of areas from tax law to a trusted business advisor. We are a trustworthy confidant for your most guarded personal financial information and proprietary business data where we make it easier to deal with stressful financial matters. We offer fresh ideas for more convenient and cost-efficient ways of doing things. Contact us today for a consultation with a competent, experienced advisor to identify and implement innovative ways to keep more of what you earn and help your business grow.