THE VALLEY BUSINESS JOURNAL 24 www.TheValleyBusinessJournal.com <strong>April</strong> 20<strong>21</strong> TAX LAW CHANGES AMIDST TAX SEASON CONTINUED FROM PAGE 1 For 2020, no repayment is required for taxpayers receiving excess advance PTCs. The bill also provides that if a taxpayer receives unemployment compensation (UC), they can use the rates as if their household income tier is 133% of the federal poverty line. Modification of Treatment of Student Loan Forgiveness Provides special rule for discharges in 20<strong>21</strong> through 2025 that the discharge of student loans as cancellation of debt is not included in gross income. Student loan borrowers who made qualified student loan payments after March 13 could have those payments refunded if they notify their loan servicer. Tax refund and/or wage garnishment has been suspended through September 30, 20<strong>21</strong>, for those who have defaulted on federal student loan debt. Tax Treatment of Targeted Economic Injury Disaster Loan (EIDL) Advances Excludes amounts received under §331 of the Economic Aid to Hard-Hit Small Business, Non-profits, and Venues Act from gross income and treats them as tax exempt income for partnerships and S corporations. Allows deductions for expenses paid with targeted EIDL advances, does not reduce tax attributes and allows basis increases. Tax Treatment of Restaurant Revitalization Grants Excludes amounts received from the Small Business Administration (SBA) under §5003 from gross income and treats them as tax exempt income for partnerships and S corporations. Allows deductions for expenses paid with such amounts, does not reduce tax attributes and allows basis increases. Tax Modifications of Exceptions for Reporting of Third Party Network Transactions (1099-K Reporting) After 20<strong>21</strong>, the de minimis exception for reporting a transaction changes from $20,000 to $600. Clarifies that reportable transactions only include those for goods and services, which will apply to transactions after the enactment of this bill. <strong>April</strong> 15 filing deadline extended to May 17 but not for everyone The IRS announced that it is moving the <strong>April</strong> 15, 20<strong>21</strong>, filing deadline to May 17, 20<strong>21</strong>, for individual taxpayers (including Schedule C filers) only. However, the extension does not apply to estimated tax payments for the first quarter of 20<strong>21</strong>. These payments are still due <strong>April</strong> 15, 20<strong>21</strong>. California conforms to the IRS filing and payment extension date of May 17, 20<strong>21</strong>. Even with the new tax filing deadline, the IRS urges taxpayers to consider filing as soon as possible, especially those who are owed refunds. Filing electronically with direct deposit is the quickest way to get refunds, and it can help some taxpayers to quickly receive any remaining stimulus payments they may be entitled to. Esther Phahla is a Certified Public Accountant and Certified Tax Strategist in Temecula. She is the Author of tax planning books: “Why Didn’t My CPA Tell Me That” and “10 Most Expensive Tax Mistakes That Cost Business Owners THOUSANDS”. She also holds a Master’s of Science in Taxation. She can be reached at (951) 514-2652 or visit www. estherphahlacpa.com ESTHERPHAHLACPA.COM ESTHER PHAHLA, CPA NAMED 2020 TOP 50 WOMEN IN ACCOUNTING CONTINUED FROM PAGE 1 Those included in the list came from all corners of the globe and ranked among the highest on the anonymized scoring system which took into account: • Dedication to promoting inclusivity and diversity in the workplace and beyond • Investment in the next generation and the future leaders of accounting • Advocacy of the accounting industry and support of the wider community “With 1,276 women nominated all over the world, I am humbled and honored to be selected and included with this incredible group of women,” said Phahla. Esther Phahla is a Certified Public Accountant and Certified Tax Strategist in Temecula. She is the Best-Selling Author of tax planning books, “Why Didn’t My CPA Tell Me That” and “10 Most Expensive Tax Mistakes That Cost Business Owners Thousands”. She also holds a Masters of Science in Taxation. She can be reached at (951) 514-2652 or visit www.estherphahlacpa.com.
<strong>April</strong> 20<strong>21</strong> THE VALLEY BUSINESS JOURNAL www.TheValleyBusinessJournal.com 25
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