It may be coming a little later than usual, but tax season is coming.

The official start of the season arrives on February 12. That is the date when the IRS will begin to accept and process returns. The agency usually starts doing that in January, but it says that it needed to account for changes resulting from the passage of the latest relief bill, signed into law by President Trump on December 27.

First, a bit of warning that even though the tax filing season is beginning later than usual, the deadline remains the same. Of course, this is subject to change, as everything has been over the past year, but you should plan on April 15 reclaiming its mystical calendar status this year.

So next, this also means that you should not procrastinate getting ready for this tax season. This can be as simple as keeping a folder of all the forms you receive. We have had enough surprises over the past year that I implore everyone to stay on top of their prep so that they are not pressured on the deadline and find some bad surprises with no time to sufficiently deal with them.

In a year of surprises, there are bound to be some new ones come tax filing time. For some, these are going to be unpleasant surprises. More people received unemployment compensation than usual in the last year, so it stands to reason that more people than usual are going to find out that that money is taxable income, and that they may not have had enough withheld to cover their obligation.

There are also bound to be some good surprises, though. After all, even that unemployment compensation was augmented by the federal government for a portion of the year in the hopes of helping people. There have been other moves to help that you may not have been aware of that you could find about come tax time.

Either way, having more time will help both of these situations. If you owe more money than expected, that time could help you pull the funds together. If you are going to benefit from some tax changes that you are unaware of, more time helps you pull together any potential documentation you may need to reap that benefit.  So even if the IRS needs some more time before it begins to start accepting tax returns, you only need as much time as it takes to get your documentation to start preparing your return (and for many, those final documents will be available in the next week or two).

Don’t hesitate to contact us and make an appointment when you’re ready then – time is on your side!

Today marks a day of change no matter how one feels about it. Just how much change is to come, though, is still yet to be determined.

In the past, I have recommended caution when acting on what we think or fear might happen, knowing that in many cases one does not need to act within hours to take advantage (or at least not be hurt) by government actions. I continue with that advice now in a time when it could be a blessing if everyone embraced some extra calm and caution as a life rule.

Before the inauguration, Joe Biden already presented what he wants to pass as the next extensive aid package due to the COVID-19 pandemic. And yes, this will include further individual stimulus payments. It includes much more money going to many different places, too, but even with Democrats now having control in both houses of Congress, we cannot exactly what any aid package will look like in its final version.

And if you need any indicator of how important it is to know what a final version looks like, just look to the stimulus package passed by Congress late last month. Only after passage did we get to say that expenses paid for with PPP funds could still be tax deductible and to then see the possibility that those who received PPP funds could also qualify for an employee retention credit. We could not have counseled anyone that this would be the case on Christmas, but a couple days later …

Sometimes we push back against any form of change just because it is a form of change. For example, those changes can seem a pain, you felt you knew the rules and then the rules changed. And heck, it is not even the first time the PPP rules changed since the program began. But in the end, those changes only led to more advantages for more people and, ultimately, more money.

So let’s not get too against change before change even happens. Change can be good. Think back four years, eight years, 12 years, 20, years, 30 years … some changes were good for us, some changes were bad for us, the answers are different for different people, but we all made it through. And if we made it through 2020, we are bound to be able to traverse whatever change Is still upcoming in our near future. And if that change is something you don’t like, don’t worry, more is always coming.

It seems like quite a bit has happened since I last wrote in this spot, because, well, quite a bit has happened since I last wrote in this spot. So much happened that I found it difficult to find something new to say, especially something that didn’t feel depressing to say.

But then – fried chicken to the rescue!

All right, well, this cannot only be about fried chicken, because life unfortunately never can be that wonderful. I did, however, come across this article from inc.com about people (including Colonel Harland Sanders) who were fired from a job and used that experience as a pivot point to then propel themselves to new heights. Then I realized that this might be just the type of story we need now.

Traveling through the last year has been tumultuous to say the least. It has been the type of road that results in victories being counted when one can stay the course more than attain any new achievements. So we may do well to give good attention to these times where someone went from a sudden low spot and used it send themselves upward.

Currently, the light at the end of the tunnel seems to have been held largely in place for a while. There have been times in the last four to six weeks when it felt we were approaching it, but it still sits in a spot in the future that feels untouchable. Even if it feels like we are on a treadmill when it comes to getting to that light, though, maybe we can still make it shine a little brighter from afar.

So read stories about people like Colonel Sanders who apparently went from places that involved courtroom fistfights and eventually (with a recipe of 11 herbs and spices) got to a point where he owned multiple restaurants that he sold for a tidy sum by the time he was ready to walk away.

Dream big, reach high. There may be no better time than one of despair to chase what thrills your imagination. When life is on a steady course, it can be difficult to find the time, energy, or drive to chase that thing in the back of your mind you have always wanted to do. It feels like taking such a chance with large chances of failure. Tough times can offer the possibility to give it that time and attention, though, because there is nowhere to go but up. So here is to my hope that these trying months churn out people now prepped to do even greater things than fry some chicken.

Because if they are doing better than that, then you know it is something really good.

 It is only right that we got a little extra treat during 2020’s holiday season, right? I mean, the year delivered enough tough hits that a bonus felt required by every law of karma.

That came about when the latest COVID relief bill was signed by President Donald Trump after he initially delayed that action. The biggest immediate impact seen by many with this was direct stimulus payments. Many who received the initial stimulus payment via direct deposit (remember that, way back in 2020?) have already seen the new funds hit their bank, and a little extra money following the holiday is always a welcome thing. If you have not received your payment yet and want to possibly check its status, you can do this via this special page on the IRS website.

Those payments got the most press when the package was passed, but there are many other portions to the relief, as well. For instance, there is $15 billion allocated for live venues, independent movie theaters, and cultural institutions. It is great to think that these places could still survive these trying times because they provide goods that we consume together, ones that we will yearn for when they feel safe again, and there has not been enough ‘together’ in almost a year now.

Another key aspect is providing an additional $300 per week for all people receiving unemployment benefits through March 14, 2021. It is kind of scary to think that that date brings us pretty close to a year since COVID-19 started to throw our lives into such disarray. But maybe there is also hope there in the fact that we made it that far.

The new package also provided additional funding for new PPP loans. This new funding can be used for a second PPP loan for small businesses that faced a significant revenue decline in any 2020 quarter compared to the same quarter in 2019. That is a stipulation that should hopefully help those businesses that were most affected in the last year. It also allows not-for-profit organizations to qualify for a loan for the first time.

Even those businesses who do not qualify for a loan this time around got an added bonus, though, as the latest package clarified the deductibility of business expenses paid for with forgiven PPP funds. Those expenses were not going to be deductible under previous IRS guidance, but now will quality as deductions giving some extra relief when tax time comes.

And a final bonus for those with PPP loans under $150,000 was a simplified forgiveness application.

There are other bits involved in the package, as well (as there should be with such a high price tag), but those are some quick highlights. As always, if you have any questions on these, or anything not covered in this quick synopsis, we remain happily committed to doing what we can to answer your questions and help you navigate this difficult period.