In response to the Tax Cuts and Jobs Acts of 2017, there were a number of changes to the disclosure requirements for partnerships and LLCs filing as partnerships – specifically, on the K-1s of Form 1065 returns, some of which became effective for the 2019 tax year. For the current (2020) tax year, however, the […]
Employee Retention Credit Expanded for 2021
If your business was impacted by either a disaster or COVID-19, you may be eligible to receive the Employee Retention Credit (ERC). It is a refundable credit against payroll taxes that was originally introduced in the CARES Act, expanded by the Consolidated Appropriations Act (CAA) signed into law on December 27, 2020, and broadened even […]
What is the Difference Between Your Marginal Tax Rate and Your Effective Tax Rate?
Have you heard the phrases “marginal tax rate” (or tax bracket) and “effective tax rate” and wondered what the distinction is between them? In order to explain the difference, it is first important to note that in the United States, we do not pay a flat tax – we are on a graduated system and […]
What is Nexus and How Does It Affect Your Business?
The dictionary defines the word “nexus” as a connection between two or more things. In taxes, it’s a key word that has a potentially big impact and state and local taxes. It’s easier to think of nexus as meaning “presence.” Nexus, or a business’s presence, in a state, is created by a variety of factors: […]
Do Nonprofits Ever Pay Taxes?
When you think about a nonprofit, the first thing that often comes to mind is that it is tax-exempt. Most nonprofits are not subject to federal, state, and local income tax. Does that mean nonprofits are completely free of ANY tax liability? The answer to this is likely no – there are still some taxes […]