Quick Tax Tips

Tuesday, July 06, 2021

Millions to Get Refunds for Tax Paid on Unemployment: July is a great month for folks who filed tax returns early in 2021 reporting their 2020 unemployment benefits. The IRS announced 4 million of those taxpayers are about to get refunds for their tax overpayments. If the IRS has direct deposit data, it will issue refunds starting July 14th. The average refund being delivered is $1,265. The refunds were created by the American Rescue Plan Act which excluded up to $10,200 in 2020 unemployment compensation from taxable income. The nontaxable amount applied to individuals and married couples whose modified adjusted gross income was less than $150,000.

Florida Back to School Sales Tax Holiday: Back-to-school shopping is one of the most expensive times of the year for families. Returning to school for the first time in a year and a half due to Covid-19, may put some parents in a state of financial shock. Being strategic with BTS purchases will help maximize your savings, especially if consumers can delay their purchases until the sales tax holiday dates. Remember - it is not just for kids! From July 31st thru August 9th, consumers can purchase a single article of clothing up to $60 without paying 6% tax on it; the first $1,000 of a computer purchase will also be tax-free. More info on eligible items here: https://floridarevenue.com/tax...

Delinquent Taxes May Affect Your Travel Plans: Many vaccinated U.S. residents are planning trips abroad late Summer and early Fall. But federal tax trouble could pose problems for some overseas travelers. The IRS says that on July 15th it will resume notifying the State Department to revoke or deny renewal of the passports of taxpayers with seriously delinquent tax debt. If you owe Uncle Sam more than $54,000 in back taxes, penalties, and interest, reach out before IRS issues a lien or levy. Proactively working with the IRS could help you resolve your tax debt on better terms.

Fantasy Sports Players May Face Tax Consequences: the IRS has consistently maintained that Fantasy sports competitions involving money are a form of gambling and just reiterated this position in a new ruling. If you play Fantasy sports online for money and win $600 or more, the sponsoring website is legally obligated to report the winnings. Typically, you’ll receive a Form 1099-MISC or a 1099-K for payment from a third party source. The same information is sent to the IRS. If you are eligible to itemize deductions above the standard deduction, you can deduct your gambling expenses to the extent of your winnings. If that is the case, your net profit for tax purposes is the amount of your winnings minus any entry fee.