Blog

Hit on Your Bike While Riding to a Freelancer Gig? New York No Fault Insurance FAQs

The good news is, if you are hit by a car while biking or walking to a freelance gig, you will have medical insurance and lost income coverage. You may also be able to recoup any related damages with a lawsuit against the negligent parties. If you were a pedestrian or bicyclist struck by a motor vehicle (car, bus, truck, or taxi), the motor vehicle’s insurance covers you for both medical and lost income. This coverage is automatic on New York insurance policies. It is popularly known as No Fault coverage because the injured pedestrian does not have to show

Receiving Freelance Income Through Peer-to-Peer Payment Apps? Tax Obligations Apply.

Do you receive payments for your freelance business through peer-to-peer (P2P) payment apps such as Venmo, PayPal and Facebook or other mobile platforms? If so, it’s important to know how income from these apps will impact your freelance taxes. In fact, because of the potential for transactions to “fall through the cracks” of your regular freelance income reporting, it’s especially important to keep detailed records of them—because the IRS has already identified these platforms as a key area in which it is working to improve its tracking capabilities. This past April, the IRS released an internal audit report (The Internal

Looking Ahead: How the American Rescue Plan Affects 2021 Taxes

This is the second of two tax tips providing an overview of ways the American Rescue Plan may affect some people’s 2021 taxes. You can read part one here. Changes expanding EITC for 2021 and beyond New law changes expand the EITC for 2021 and future years. These changes include: More workers and working families who also have investment income can get the credit. Starting in 2021, the amount of investment income they can receive and still be eligible for the EITC increases to $10,000. Married but separated spouses who do not file a joint return may qualify to claim

Child & Dependent Care Changes That May Affect Your 2021 Tax Refund

The American Rescue Plan has introduced changes to these key 2021 tax credits related to child and dependent care which can be a valuable way to lower your tax obligations. Child & Dependent Care Credit Increased for 2021 Only In 2021 the amount of the child credit and eligible expenses for child and dependent care modifies the phase-out of the credit for individuals with a higher income and makes the credit refundable. This tax year, the top credit percentage of qualifying expenses increases from 35% to 50%. In addition, eligible taxpayers can claim qualifying child and dependent care expenses of

Did You Get a PPP Loan for Your Freelance Business? Request Loan Forgiveness

The Paycheck Protection Program (PPP) has been a lifeline for many freelancers and small businesses who experienced a loss of revenue due to the COVID-19 pandemic. Over the past year, the program was expanded several times to allow more participants to take part in it and receive funding—the government even made the loans forgivable. This was, and still is, great news for cash-strapped freelance business owners. However, there were always at least two key caveats for those taking PPP loans: 1) the funds had to be used for qualified expenses (see the list below) and 2) as a recipient it

Did You Claim Unemployment Income on Your 2020 Freelance Tax Return?

Now that the extended tax deadline of May 17 is behind us, it appears the IRS is planning to play catch-up on issuing refunds to eligible taxpayers this week—including for taxes paid on up to $10,200 of 2020 unemployment compensation which, under the American Rescue Plan (ARP), was eventually excluded from taxable income. The $10,200 per person exclusion applies to taxpayers who are single or married, filing jointly, with modified adjusted gross income of less than $150,000. Whether you receive a full refund, a reduced balance after your freelance tax obligations are met or no refund at all on this

Taxes Are Due May 17 – Here’s What To Do If You Can’t Pay Your Tax Bill

You’ve had just over a month longer than usual to file your freelance taxes due to the IRS extension of the annual tax deadline to May 17. However, if you were stressing about paying your tax bill back in April, it’s doubtful that you are feeling more confident about it now. With that said, if you haven’t filed your freelance taxes because you can’t pay your tax bill, it’s only going to hurt you in the long run. Now’s the time to get your taxes filed and make a plan to take care of your remaining tax obligations as soon

Covid-Era Business Meal Deductions May Take a Bite Out of Your 2021 Freelance Taxes

If you have already filed your freelance taxes for 2020, you may have noticed that your deductions for meal expenses were considerably lower than in past years. While this could be because you had fewer business meals due to the COVID-19 pandemic, it is also attributable to the major changes in entertainment and meal expense deductions brought about by the Tax Cuts and Jobs Act (TCJA)—which were only finalized in the last few months of 2020. However, under the HEALS Act a Covid-19 relief program, there are important modifications to eligible business meal expenses which may benefit your freelance tax

The May 15 Deadline is Almost Here! Freelance Tax Deduction Checklist

The May 15 tax deadline is only a few days away, so there’s no time to waste if you haven’t already filed your taxes. To help you maximize your freelance tax deductions and reduce your 2020 tax bill, here’s a handy checklist. You can also access a full summary in this PDF from CPA for Freelancers®. Unemployment income benefits deductible up to $10,200. The IRS is forgiving up to $10,200 to individuals (and up to $20,400 for those married filing jointly) who filed their 2020 tax return including income from unemployment benefits before the American Rescue Plan Act was passed.

Freelancers Now Have Until May 17 to Top Up Their 2020 Retirement and HSA Contributions

The IRS recently announced that it is extending the deadline for taxpayers to contribute to their eligible retirement accounts and health savings accounts for the 2020 tax year until May 17, 2021 (the same day that individual tax filings are now due). This means that freelancers have more time to make contributions to their individual retirement accounts such as IRAs and Roth IRAs and Health Savings Accounts (HSAs). Some other IRS extensions and updates to be aware of which may impact your freelance tax situation include: Unclaimed refunds from the 2017 tax year can now be claimed up until May

Book An Appointment Today! | Contact Us Now! 646-415-8011