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Recovery Rebate Credit - What is it and how is it related to stimulus payments?

  Recovery Rebate Credit - What is it? If you did not receive the 1st and 2nd stimulus checks, you can actually still receive the payment by claiming the recovery rebate credit (if eligible). The stimulus check was determined by your filing status in 2018 and 2019. The group that was significantly impacted were college students as many of their parents claimed them as a dependent in 2018-2019.  The IRS added the new recovery rebate credit in the Form 1040 to ensure that those who did not receive their full economic impact aid would still get their payment. If you did the tecice the first or 2nd stimulus payment, you can now claim that on your tax return to increase your refund or reduce the amount you owe  You can claim the Recovery Rebate Credit if the following applies to you: U.S Citizen or U.S. resident alien in 2020 Will NOT be claimed as a dependent   Have a social security number You were not issued an Economic Impact Payment If your 1st economic payment ...
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Etsy Small Business Taxes - Things you need to know

  During quarantine, a lot of you started your own small business through Etsy, and completing your taxes can definitely get confusing. We broke it down and simplified it as much as possible. So, first thing first, you might be receiving a couple of forms from Etsy. That can include: ·         1099-NEC (1099-Misc) – If your shop earned more than $600, Etsy will issue you this form and the IRS a copy as well. ·         1099-K – If you had more than 200 sales or made over $20,000, Etsy will issue you this form If you don’t receive either form, you can look at your Etsy Shop Finances to determine the amount of sales. Once you receive/obtain this information, be sure to check that the Taxpayer ID and sales amount is correct. If there are any errors, be sure to have them correct it so there are no discrepancies. The next thing that you will need is all the expenses you occurred during the year for your busin...
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Tax Checklist for Simple Tax Returns

2020 is coming to an end and that means tax season is here! You will be receiving a couple of tax forms in the next couple of weeks. We've compiled a checklist of all the possible forms that you will need to have before you file your 2020 taxes. W-2 (Wages and Tax Statement) – If you worked for any employer during 2020, this form will be issued directly by the employer. If you worked for multiple employers, you will receive one from each. 1099-G (Certain Government Payments) – If you filed for unemployment this year and received payments, you can download this form from the UI site once it becomes available. 1099-NEC (1099-MISC) – If you are an independent contractor that conducted work for more than $600, you will receive this form from the person/company that issued you the payment. 1099-DIV (Dividends and Distributions) – 2020 was definitely a year that many of you invested in the stock market. This form will be issued from your brokerage firm if you earned dividends in 2020...
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