Your kids may have spent the past year driving you absolutely bonkers, but this summer having them around is about to pay off….in a big way! There have been some really important changes to the Child Tax Credit (CTC) this year that may allow you to receive advance payments starting THIS SUMMER! And because we know you don’t want to pour over all the resources to find out how you benefit from this change, we will do it for you!

It’s the most wonderful time of the year—tax season! While we tax pros didn’t think it could get much crazier than last year, 2020 returns are proving to be just as interesting. There have been a few after the fact changes to unemployment, PPP, state grants and a variety of business credits, contending with stimulus eligibility strategies. Phew, it’s a lot to keep track of, even for us nerds. This may be the first year you’re considering amending a prior tax return based on some of these changes. So we’re saving you time and frustration by answering all of your frequently asked questions regarding amended returns.

We know you may be still recovering from the wild ride of completing your 2019 tax return after Covid19 turned our world upside down, but a new tax season is upon us, and there are few things you should know in order to make the process of filing your 2020 return as smooth as possible. Check out our updates below to find out what’s changed and what’s still in place for this year.

With so many folks working from home due to Covid, we've seen a spike in the creation of new small businesses. This is great news! Owning a small business has so many benefits including the potential for financial independence and the ability to be your own boss. One of the most common questions we get from our clients who are taking this leap is how to select an entity. And while your mind is probably in overdrive with all the balls you have to juggle to get your company off the ground, choosing the right entity for your business is one of the most important decisions you’ll make. So read on and discover our recommendation for which type of entity is the best fit for new small businesses.

We’ve got great news for our clients who were feeling especially generous during the last year and made significant contributions to charitable organizations during 2020. As part of the CARES act, the IRS has announced a temporary tax break that allows more people to deduct up to $300 in qualifying donations when they file their taxes in 2021—even if they choose the standard deduction rather than itemizing.

As if the Cares Act stimulus payments that came about this past spring as a result of the Coronavirus pandemic weren’t confusing enough, we’ve got another curveball for you. This one has to do with parents who are divorced, separated, or never married and for those reasons alternate years claiming their children on tax returns. If this situation applies to you, you’ll definitely want to read about the latest update below.

The days are getting colder, the nights are getting longer, and the beautiful fall foliage we're lucky enough to have here in New England is nearly gone. That must mean this crazy rollercoaster of a year is almost over. Finally! And while we're gearing up to celebrate the holidays, we also want to share a few reminders and highlights for both our business and individual clients regarding various tax credits. Read through to see if any of these apply to your situation and then schedule some time with us to get everything in order.

They say you can’t teach an old dog, or in this case an old bookkeeper, new tricks. (Did we just call ourselves old?) Anyway, for many years we were hard core supporters of the desktop version of QuickBooks. When the online version first came out it was a nightmare and left a bad taste in both bookkeeper’s and accountant's mouths. But now we see the light and recommend QuickBooks Online (QBO) over the desktop version 99% of the time.

Here at AccountAbility we strive to provide you with the most up to date and relevant information on what you need to know each month when it comes to all things taxes and bookkeeping. Many of our clients that are New Hampshire residents have reached out to ask about paying Massachusetts income tax while working remotely during the COVID19 pandemic. So this month we’re taking a deep dive into the rules and breaking it down for you so that you don’t have to go searching through all that technical tax jargon.

Another day, another change to the Paycheck Protection Program rules. On June 22nd, the Small Business Administration released the Interim Final Rules which are meant to clarify and make official some of the guidance that has recently been released.

You may have noticed something different around here lately. No, we haven’t lost weight (thanks a lot, quarantine). But we do have some big news about our business. Tax Services of Londonderry is now AccountAbility!

One of the most universal, widely used and known tax forms just got a facelift for 2020 – the W-4. For a quick refresh, the W-4 is an IRS form you submit to your employer when you first start working. It outlines what amount of money should be withheld from your paycheck each pay period.

News flash – people are living and working way longer than they used to be! Maybe you’ve already received that memo, now it’s finally landed on the ears of the government. Despite this change in social norms retirement age and requirements have stayed very consistent until now.

It’s game on!! If you have all your tax documents you were officially able to file as of January 27th. Which means, it’s time to collect all the necessary information and get it over to our office. That can feel a little ambiguous if you don’t live and breathe taxes like we do – so here is an outline of what you need to be thinking about.

Tax season is upon us! For many of you this may feel like a very stressful time based on two factors: being underprepared or under-informed – probably both. Before you beat yourself up about it or ignore it altogether because it makes you uncomfortable, let’s look over some facts.

If only taxes were as simple as paying a percentage of your steady income into the IRS. The more complex your financial profile gets the more things come in to play when you file at the end of the year. One thing that can add to the complexity is capital gains or losses.

When it comes to taxes there is never one answer that fits every scenario. Gift tax is no different. We get this question a lot when our clients get large gifts (lucky you if it’s for a holiday!) or become the benefactor of an inheritance

Around this time of year is when you should start thinking about end of year tax preparations. First, consider if your estimated tax payments align with the actual revenue your business is on track to generate through the end of the year.

If you haven’t already heard, there is a tax break that can come with that expensive college education! It’s called the American Opportunity Tax Credit (AOTC). It can be applied to qualified education expenses for the traditional first four years of college with a maximum of $2,500 credit annually for each eligible student you have.