Blog Archives

MEDIA & ENTERTAINMENT WORKSHOP: DO YOU HAVE A PLAN? Artists, Musicians, Entrepreneurs...Interested in learning more about Media and Entertainment?Join Us, Oct. 10th and Oct.17th at 12:00p ET NABFEME ATL in conjunction with the Atlanta Black Chambers will help you determine, who you need on your team?Sponsored by NABFEME(National Association of Black Female Executives in Music & Entertainment)& The Atlanta Black Chamber - RTW's, President and CEO, Robbie-Terry Washington will be one of the featured experts! Free for Atlanta Chamber Members - $20 For General PublicRegi...

If you were an individual or business that needed additional time beyond July 15, 2020, to file your 2019 Tax Return and you filed a request for an extension, your deadline is quickly approaching. 

RTW is experienced in the filing of Individual, Business, Partnership, Corporate, S Corporate and Non-Profit tax returns. Call us at (855) 205-8486.  See the deadlines below for those who requested extensions.

RTW requests all tax documents no later than 10/9.  AFTER THAT DATE, WE CAN’T GUARANTEE THAT THE  FILING CAN BE COMPLETED BY 10-15-2020.

Deadlines for Extensions are UP TO the following dates.

Personal Tax Returns (1040)            October 15, 2020
Includes Schedule C- Business returns for Single Member LLC’s and Sole Proprietors
Corporate Tax Returns  (1120)         October 15, 2020

Others, including Non-Profit (990)   November  15, 2020
(only calendar year non-profits)

Please Note: RTW can still assist you in filing (1120S) S Corp and (1065) Partnership returns, but IRS will assess penalties.

S Corporations (1120S)                      September 15, 2020

Partnership Tax Returns (1065)         September 15, 2020
Includes 2 or more members LLC’s and LLP’s

RTW is highly experienced in filing all of the taxes above.   
Contact us at (855) 205-8486 or email Info@rtwxxact.com

HOW TO SEND DOCUMENTS:

• CLICK ON THE “CLIENT DROP BOX” AT THE FOOTER OF A PREVIOUSLY RECEIVED EMAIL (EXISTING CLIENTS)
• SIMPLY VISIT WWW.RTWXXACT.COM AND SELECT THE CONTACT US TAB
• MAY ALSO FAX YOUR DOCUMENTS TO (855) 541-0895

For your convenience, you may also schedule an appointment to drop-off or pick-up documents:

Cleveland Office:  Daily by appointment only
Atlanta Office: Daily by appointment only 

Please Call Us Today at (855) 205-8486
Email us info@rtwxxact.com

IRS EXTENDS ECONOMIC IMPACT PAYMENT TO 11-21-2020 TO HELP NON-FILERS

WASHINGTON – The Internal Revenue Service announced today that the deadline to register for an Economic Impact Payment (EIP) is now Nov. 21, 2020. This new date will provide an additional five weeks beyond the original deadline.

The IRS urges people who don’t typically file a tax return – and haven’t received an Economic Impact Payment – to register as quickly as possible using the Non-Filers: Enter Info Here tool on IRS.gov. The tool will not be available after Nov. 21.

“We took this step to provide more time for those who have not yet received a payment to register to get their money, including those in low-income and underserved communities,” said IRS Commissioner Chuck Rettig. “The IRS is deeply involved in processing and programming that overlaps filing seasons. Any further extension beyond November would adversely impact our work on the 2020 and 2021 filing seasons. The Non-filers portal has been available since the spring and has been used successfully by many millions of Americans.”

Special note: This additional time into November is solely for those who have not received their EIP and don’t normally file a tax return. For taxpayers who requested an extension of time to file their 2019 tax return, that deadline date remains Oct. 15.

To support the ongoing EIP effort, many partner groups have been working with the IRS, helping translate and making available in 35 languages IRS information and resources on Economic Impact Payments.

To help spread the word, the IRS sent nearly 9 million letters in September to people who may be eligible for the $1,200 Economic Impact Payments but don’t normally file a tax return. This push encourages people to use the Non-Filers tool on IRS.gov.

“Time is running out for those who don’t normally file a tax return to get their payments,” Rettig added. “Registration is quick and easy, and we urge everyone to share this information to reach as many people before the deadline.”

While most eligible U.S. taxpayers have automatically received their Economic Impact Payment, others who don’t have a filing obligation need to use the Non-Filers tool to register with the IRS to get their money. Typically, this includes people who receive little or no income.

The Non-Filers tool is secure and is based on Free File Fillable Forms, part of the Free File Alliance’s offering of free products on IRS.gov.

The Non-Filers tool is designed for people with incomes typically below $24,400 for married couples, and $12,200 for singles who could not be claimed as a dependent by someone else. This includes couples and individuals who are experiencing homelessness.

Anyone using the Non-Filers tool can speed the arrival of their payment by choosing to receive it by direct deposit. Those not choosing this option will get a check.

Beginning two weeks after they register, people can track the status of their payment using the Get My Payment tool, available only on IRS.gov.

AOTC Tuition Credit Offers Tax Savings for Students or Parents – Did You Know?

If you, your spouse or any of your dependents are currently enrolled in a higher education program, or were enrolled for a previous academic period in 2020, you may qualify for the American Opportunity Tax Credit (AOTC). The AOTC program allows eligible taxpayers to claim a credit for tuition costs and certain school fees.

To qualify for the credit, a student must be taking post-secondary classes at an eligible higher learning institution, in pursuit of a degree or other recognized certification or credential.

In addition, students must meet ALL of the following eligibility requirements:

• They are or were enrolled at least half time for at least one academic period (as defined by the school) in 2020.
  
• They had not completed their first four years of higher education as of January 1, 2020.
  
• Neither the AOTC nor its predecessor, the Hope credit, has been claimed more than four times total for the student, including the current year.
  
• The student and the person claiming the credit (if different from the student) must have a valid taxpayer identification number (TIN) before the due date for the tax return.

Additional eligibility criteria may apply to both the student and the educational institution. To claim the full credit, taxpayers must have a modified adjusted gross income (MAGI) of $80,000 or less for individuals, or $160,000 or less for couples filing jointly. A reduced credit may be available for individual taxpayers with a MAGI between $80,000 and $90,000 (between $160,000 and $180,000 for joint filers). Those with higher incomes may not claim the credit.

The maximum allowed credit per eligible student is $2,500, up to $1,000 of which may be refundable. You may claim the credit for multiple students in your household if they all meet the eligibility standards. For students who do not qualify, you may still be able to claim either the Lifetime Learning Credit or an above-the-line income deduction for tuition and fees. A tax professional can help you determine which credits and/or deductions provide the greatest tax benefit for you.

Educator Expense Deduction – Did You Know?

If you are a teacher, principal, counselor, or classroom aide who works at least 900 hours a year in a state-accredited school (grades K-12), you may qualify for the Educator Expense Deduction. This IRS rule allows you to deduct up to $250 on your tax forms ($500 for joint filers who are both educators, but not more than $250 each) for classroom supplies that you purchase at your own expense.

Allowed expenses include traditional school supplies like rulers and markers, computer equipment and software, along with specialty items like athletic gear for physical education classes. A qualified tax advisor can help you determine which of your expenses qualify for the deduction.

You may not have to itemize deductions in order to claim the Educator Expense Deduction, but the IRS does require that you have written evidence for every expense. During this hectic back-to-school period when classroom expenses are most likely to occur, it is important to remember to save your receipts.

REMINDER: TIME IS RUNNING OUT ON IRS EXTENSIONS!

Due to COVID -19 IRS extended the April 15, 2020 Tax Filing Deadline to July 15, 2020 for most individuals and businesses.   If you were an individual or business that needed additional time beyond July 15, 2020,  and filed a request for an extension, your deadline is quickly approaching. 

RTW is experienced in the filing of Individual, Business, Partnership, Corporate, S Corporate and Non-Profit tax returns. Requesting an extension is like running half the race.  Let RTW take you to the finish line.

Call us at (855) 205-8486  See the deadlines below for those who requested extensions.

Deadlines for Extensions are UP TO the following dates.

Personal Tax Returns (1040)  – October 15, 2020
Includes Schedule C- Business returns for Single Member LLC’s and Sole Proprietors

Corporate Tax Returns  (1120) – October 15, 2020
RTW requests r tax documents no later than 10/9 to insure that the 10/15 filing is met.

Others, including Non-Profit (990) –  November  15, 2020
(only calendar year non-profits)

S Corporations (1120S) – September 15, 2020
Partnership Tax Returns (1065)  – September 15, 2020
Includes 2 or more members LLC’s and LLP’s
RTW can still assist you in filing (1120S) S Corp and (1065) Partnership returns, but IRS will assess penalties.

RTW is highly experienced in filing all of the taxes above.   
Contact us at (855) 205-8486 or email Info@rtwxxact.com

HOW TO SEND DOCUMENTS:

• CLICK ON THE “CLIENT DROP BOX” AT THE FOOTER OF A PREVIOUSLY RECEIVED EMAIL (EXISTING CLIENTS)
• SIMPLY VISIT WWW.RTWXXACT.COM AND SELECT THE CONTACT US TAB
• MAY ALSO FAX YOUR DOCUMENTS TO (855) 541-0895

For your convenience, you may also schedule an appointment to drop-off or pick-up documents:

Cleveland Office:  Daily by appointment only
Atlanta Office: Daily by appointment only 

Please Call Us Today at (855) 205-8486
Email us info@rtwxxact.com

UNEMPLOYMENT BENEFITS ARE TAXABLE INCOME- DID YOU KNOW?

Due to the economic impact of the COVID-19 (coronavirus) pandemic, individuals may have had to file for Unemployment Insurance (UI) benefits for the first time. These benefits include the federal Pandemic Unemployment Assistance (PUA) program created under the CARES Act, which provides an additional $600 per week to many UI benefits recipients. For individuals receiving UI payments in 2020, it is important to understand the tax treatment of those benefits.

Both state and federal unemployment benefits payments are generally taxed as ordinary income by the IRS. As is the case with most regular income sources, recipients of these benefits are required to make tax payments throughout the year.

One way that taxpayers can meet this requirement is to request that tax be withheld from their UI payments, which can be done in most states by filing Form W-4V with the state’s unemployment benefits office.

If no tax is withheld from their UI payments, taxpayers may need to make quarterly estimated tax payments in order to avoid a large tax bill next spring, which could include penalties and interest charges.

A tax professional can help UI payment recipients determine whether estimated payments are needed, and how much to pay. The estimated tax payment deadline for the first two quarters of 2020 was July 15, but if an individual missed that deadline, penalties can still be minimized by making a payment as soon as possible. 

Even if tax is withheld from UI payments, the amount withheld may be incorrect if a person’s benefit amount differs from their salary while working. To avoid an unpleasant tax surprise next spring, taxpayers can use the IRS Withholding Estimator tool (link below) to calculate the appropriate withholding amount, and file an updated Form W-4V to request additional withholding if necessary.

UI benefits recipients should also do a second checkup with the Withholding Estimator after returning to work, to ensure that their paycheck withholding is accurate going forward.

RTW Xxact is an expert in tax preparation, please call us for assistance in determining your estimated payments.

CALL US AT (855) 205-8486 or email us at info@rtwxxact.com

IRS Withholding Estimator tool: https://www.irs.gov/individuals/tax-withholding-estimator

STIMULUS LEGISLATION AND GOVERNMENT FUNDING

Since the summer recess, talks of passing another COVID-19 relief bill have been minimal. As you may recall, the Democratic House has passed the Heroes Act and the Republican’s introduced a HEALS Act. Both have stalled in Congress.

This week, Republican Senate leaders have introduced a GOP Skinny Bill  (click to review the details of the entire proposed bill) which does not include an economic stimulus payment, but does include:

• A second round of Paycheck Protection Program funds for businesses that have demonstrated a revenue loss.·        
• A provision to allow states to provide an additional $300/week in extra federally funded unemployment benefits through Dec. 27, 2020

The Senate will hold a vote on this bill today to find out the level of support behind the bill. It’s unlikely it will get the backing of 60 members to advance under the filibuster rules.

At this time, most government leaders don’t expect a stimulus bill to pass prior to the election. Treasury Secretary Steven Mnuchin told reporters his focus is on passing legislation that is needed to keep the government funded past Sept. 30 to avoid another government shutdown.

Mnuchin and Speaker Nancy Pelosi have informally agreed to support a “clean” short-term stopgap measure. A “clean” continuing resolution means that it would be free of controversial policy riders that have prevented previous funding bills from passing.

STILL WAITING ON YOUR TAX REFUND ?!!

While our extended tax season is officially over, many taxpayers are still asking “Where’s my refund?”

The IRS Identity Verification program is in place to help prevent identity thieves from stealing tax refunds. Impacted taxpayers will receive a letter from the IRS with instructions on how to verify their identity.

The taxpayer’s refund is released once they have successfully verified their identity.  Taxpayers that received one of the following letters can verify their identity online using IRS ID Verify by clicking on one of the live links below.

Use ID Verify only if you have a:

• 5071C letter
• 5747C letter
• 5447C letter and your financial and phone information is U.S.

You can’t use ID Verify if you received a 4883C letter, follow the instructions on the letter. Your refund will be held until your identity is successfully verified.

What You Need to Verify Your Identity

To register and use ID Verify, you need:

Your personal account number from a:

• Credit card
• Mortgage
• Student loan
• Home equity loan or home equity line of credit
• Car loan
• A mobile phone associated with your name
• Your 5071C letter, 5747C letter or 5447C letter
• The income tax return (form 1040,1040-PR, 1040-NR, 1040-SR, etc.) for the year shown on the letter
• Note: A Form W-2 or 1099 is not an income tax return
• You must also have your mailing address from your previous year’s tax return

Special Instructions for Filing Status and Mailing Address

• If you just filed a tax return with a new address:  Enter the old address from the previous year, even if it’s not your current address. We use this information for identity verification
• If you just filed your first tax return:  Select the option labeled “I have not filed a tax return in the past seven years” as your filing status

If You Are Experiencing Online Problems Connecting or Accessing the Site:

There are compatibility issues with some assistive technologies. Refer to the Identity Verification Service Accessibility Guide for help if you use a screen reader, screen magnifier or voice command software.

iOS 13, iPadOS 13.5, and macOS 10.13 and later VoiceOver users may experience difficulties when accessing this application. If this impacts you, see Other Ways to Verify Your Identity.

Verify Your Identity Now

Other Ways to Verify Your Identity

If you can’t register for ID Verify online or don’t have the required documentation, please contact us using the toll-free number listed on your letter.

To expedite the process when calling, you must have:

• Your 5071C letter, 5747C letter or 5447C letter
• The income tax return (form 1040,1040-PR, 1040-NR, 1040-SR, etc.) for the year shown on the letter 
  • Note: A Form W-2 or 1099 is not an income tax return
• Any other prior year income tax return
• Any supporting W-2’s, 1099’s, Schedule C, Schedule F, etc.

If IRS can’t verify your identity over the phone. They may ask you to schedule an appointment at your local IRS office to verify your identity in person.

Please Note: Planned Outage: September 13^th This service will be unavailable on Sunday, September 13, 2020, from approximately 9 a.m. until approximately 11 a.m. Eastern time due to planned maintenance.

SBA Financial Grants! City Of Euclid, OH & Cleveland Neighborhood Progress Partner!

The City of Euclid has partnered with Cleveland Neighborhood Progress to establish a COVID Business Assistance Program to support businesses impacted by COVID-19. The program offers financial support in the form of grants and technical assistance for small businesses within the City Euclid. 

Grants provided under this program are intended to provide working capital for business related expenses, including payroll, accounts payable, fixed costs, inventory, rent, and utilities.  Businesses will be evaluated for funding based on eligibility metrics and need. 

Grantee Support

• One-time grants of up to $3,000
• One-on-one financial coaching and counseling made available by Community Financial Centers (CFC), a third party service provider. Each grantee will have the opportunity to receive a financial health assessment and to work one-on-one with their coach to map out a financial action plan to set goals and track progress.
• Referrals to other small business support services and technical assistance providers.
• Applications must be submitted online by Monday, September 14^th, 2020 at 11:59pm.
  
  a relief fund for clients located in Euclid.  Click here to learn more or apply

Eligibility Requirements

• Business must have less than 25 employees
• Businesses must currently occupy a commercial space in Euclid (i.e. Assembly, Business, or Mercantile use classification as defined by the Ohio Building Code). 
• Eligible applicants must provide documentation to verify a revenue loss of at least 20% since March 15, 2020 due to COVID-19.
• Eligible applicants must demonstrate that the grant funds will not result in a duplication of benefits received through other public financial assistance programs (e.g., Round 1 or 2 of Cuyahoga County Small Business Stabilization Fund, Payroll Protection Program, Economic Injury Disaster Loans/Grants, etc.).
• Grant funds may be used for business expenses such as rent, mortgage, utilities, payroll, personnel protective equipment, cleaning products, protective barriers, and other building/site alterations that may be needed as a response to COVID 19.
• Business must have less than $1 Million in revenue.
• Business must have been in operation for at least one year.
• Business must have a plan to re-open within one calendar year if operations have been suspended.

• The business itself, and the business owner, may not own real property in Cuyahoga County with delinquent real property taxes totaling more than $1,000.

Ineligible businesses include:

• Home-based/home occupation businesses.
• Adult entertainment, banks, financial services, e-commerce, liquor stores, tobacco stores, cannabis dispensaries, and franchises which are not locally owned and independently operated.

For more information, please call the City of Euclid Department of Planning and Development at 216-289-2830

.CLICK HERE TO APPLY