COVID Relief

You may have overlooked potential COVID-19 tax credits.  Credits can result in up to $15,110 in tax credits.  The good news is that it’s not too late to claim them.

The IRS allows amended tax returns. Therefore, please be aware that you should act soon because the timeline for submitting amended returns is limited.

To realize the $15,110 in maximum tax credits, you must meet the following requirements:

• Adequate 2020 income ($143,866 of net income if you’re self-employed, or equivalent W-2 income if you’re an employee of your corporation)
• An inability to work in 2020 due to COVID-19
• A son or daughter who is either under age 18 or incapable of self-care because of a mental or physical disability

Credits

The law divides the credits into two categories:

1. Up to $5,110 for individuals unable to work due to COVID-19-related reasons
2. Up to $10,000 for individuals who cared for a child due to COVID-19

In conclusion, you can claim the credits by amending your tax return and filing a completed Form 7202 along with IRS Form 1040-X.

For corporation owners, if your corporation paid you while you were not working due to COVID-19, your corporation may qualify for sick or family leave tax credits.

Also, please be aware that you cannot receive double benefits. In order words, if you received assistance through the Paycheck Protection Program (PPP), the ERC, or similar programs, you are not eligible.

The Sterling Standard

Sterling Tax and Accounting is here to help your business with tax planning!  Our comprehensive approach to tax planning helps reduce your overall tax liability.

If all your accountant does is file your taxes, chances are they are making you pay more than your fair share of taxes.

Learn how to proactively save on taxes by scheduling a call with our tax planning specialists.

Our tax planning, accounting & business services help you stay on track.

Sterling Tax & Accounting will work with you to optimize your business and minimize your taxes.

We will work to provide you and your business with the tools and resources you need to build a solid tax and business foundation.

Welcome to the Sterling Standard of business!  Want to learn more?

Schedule a meeting with our tax planning team here:  https://www.sterling.cpa/contact-us/