Frequently Asked Questions About Taxes
Accurately filing annual returns on time is essential to comply with the tax authorities. On many occasions, you will also be able to claim rebates, so it’s critical to stay on top of your books. However, if it’s your first time filing taxes, you may have tons of questions about the process but may find it tricky to get all the answers that you’re seeking.
So, to ensure you have all your doubts cleared, Findon & Associates, wants to arm you with the most accurate information available so you can make the right choice when filing your tax returns. To do this, we’ve answered some of the most frequently asked questions about taxes.
1. I’m receiving unemployment benefits due to COVID-19 and elected for taxes to get deducted. Will that be enough withholding?
Ten percent federal tax will be taken out of your unemployment benefits if you elect it. Most often, this will not be enough withholding and could result in a higher tax bill when you file your 2020 taxes.
2. Will my Economic Impact Stimulus Payment be taxable when I file my 2020 tax returns?
No, it will not be taxable. If you received more than what you were entitled to, you would not be required to repay it. On the other hand, if you didn’t receive enough, you could see it as a refundable credit on your 2020 tax return.
3. I received the PPP loan - will this be considered income to my business?
We surely hope not! A clarification needs to be issued related to allowing businesses to deduct the expenses used with the PPP funds. We hope to receive information regarding this matter sooner rather than later.
4. Can I defer my payroll taxes from my paycheck?
President Trump made an executive order that allowed employees to defer their social security tax portion from September 1, 2020 - December 31, 2020. We are eagerly anticipating clarity from the IRS and treasury on how to handle this deferral.
5. Are there grants available for my small business?
Yes, there are! The PA DCED provides grants ranging from five thousand dollars to fifty thousand dollars to small businesses that have been economically impacted by COVID-19. The good news is that it’s not on a first-come, first-served basis. Please visit www.dced.pa.gov to find out more details.
If you have any more questions about tax or filing returns, get in touch with the experts at Findon & Associates. We are a full-service accounting firm dedicated to rendering clients with professional, personalized services and assistance in various financial and business needs.
We serve clients across Pittsburgh, Monroeville, Oakmont, New Kensington, Homestead, and Murrysville, and Pennsylvania.