Guidance by IRS Limits Deductibility for Expenses from PPP Loans
When business owners first applied for loans from the Paycheck Protection Program (PPP), they did so with the expectation that they could seek forgiveness for some or all of it. In effect, this would make it a "free” loan, allowing businesses to continue functioning despite the economic impact of the coronavirus pandemic. Unfortunately, the IRS has decided to deliver some bad news to PPP recipients right before the holidays, announcing that expenses from a PPP loan that a recipient expects to be forgiven cannot be deducted from their taxes. The latest IRS ruling will most likely make this taxable event occur for 2020.

Unemployment, Side Gigs, and Tax
The pandemic has been front and center most of this year and it may have tax implications for you.

Track Your Dollars
Do you keep track of all the money you spend in a month? Tracking your expenses will help you take control of your financial life.

End of Financial Year Tune Up
Reviewing where you stand financially before the end of the year means you can take advantage of tax-saving opportunities that end December 31, 2020 and then start financially strong in the New Year.

Common IRS Surprises
No one likes surprises from the IRS, but they do occasionally happen. Here are some examples of unpleasant tax situations you could find yourself in and what to do about them.

OVERTIME UPDATE

Earlier this year, the U.S. Department of Labor adjusted their rule on who is eligible for overtime pay. The new rule updates earnings thresholds required to make executive, administrative and professional employees exempt from overtime. These employees will now need to earn at least $684 per week as a salaried employee and a portion of nondiscretionary bonuses and incentive pay, like commissions, can be used to meet the minimum salary requirement.

COMMON CENTS

Most U.S. coins are stamped with a letter code to show which branch of the U.S. Mint made the coin. However, the Philadelphia branch doesn’t always use a stamp because it was the first Mint branch. And no marks were used from 1965 to 1967. But today, most coins, except those made in Philadelphia, carry the stamp of their creator.

NON-TRAVEL BENEFITS

Less travel due to the coronavirus pandemic has reaped huge rewards for the planet. According to joint studies by NASA, the European Space Agency and the Japan Aerospace Exploration Agency, air quality improved in parts of Europe with a 50% reduction in air pollution and a 30% reduction in the Northeast US. Similar improvements were seen in parts of India and China.

UNEMPLOYMENT

The U.S. Department of Labor is providing $100 million to support states in combating and uncovering unemployment fraud. The funds can be used to complete fraud investigations and to implement tools to detect and recover improper pandemic unemployment payments and states are encouraged to adopt new fraud prevention strategies to protect the integrity of their unemployment insurance programs.