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The maximum above the line cash charitable contribution deduction for Married Filing Jointly (MFJ) taxpayers not itemizing deductions has doubled to $600 for tax year 2021. For Married Filing Separately (MFS) and non-married taxpayers, the maximum above the line (before Adjusted Gross Income [AGI...
The business meals deduction has doubled from 50% to 100% for years 2021 and 2022. This includes food and beverages purchased from a restaurant. The challenge for businesses is knowing what qualifies in our current environment where many restaurants are rapidly opening and closing their doors due...
Unemployment compensation is taxable federally and in most states. California is one of the states that do not tax unemployment compensation.  Certain states automatically withhold taxes on unemployment compensation while others give taxpayers the option to have taxes withheld from benefits. A st...
Taxpayers can eFile their tax returns starting today. Some, however, may want to delay filing. The US Congress is in the process of passing new legislation that will impact taxes. A third round of Economic Impact Payments (EIP) are likely for individuals and their dependents. If one chooses to fi...
 The IRS has extended for years 2021-2025 the cancellation of debt (COD) exclusion related to a qualified principal residence mortgage. Mortgages used to buy, build or improve a taxpayer’s main home will qualify. The mortgage must secure the property. A refinancing is also valid as long as it was...
The mortgage insurance premium (MIP) deduction for a qualified residence has been extended for year 2021. Mortgage insurance premiums (MIP) are paid by borrowers whose downpayment is less than 20% on a real estate purchase. It compensates the lender for their increased risk due to the small amoun...
California law until February 15, 2021 allows a parent to child and grandparent to grandchild transfer of a principal residence to be excluded from property tax reassessment. Other real property such as non-principal residence homes and commercial real estate can be transferred from parent to chi...
President Biden signed over a dozen Executive Orders almost immediately after entering office. Federal student loan debt payments will be suspended, there will be a freeze on collections of defaulted loans and no interest shall apply to the debt. It is important to note that some student loans ar...
On February 12 the IRS will start accepting individual tax returns for processing. Usually it begins at the end of January, but with the new tax legislation recently passed in December 2020, the IRS needs more time in order to get their systems ready. They are hoping this will help to reduce refu...
The IRS is recommending everyone to use their Get My Payment (GMP) system on the IRS website to check the status of an Economic Impact Payment (EIP). The website will show the status of the first and second Economic Impact Payment (EIP) as well as how the payment was paid. For instance, by direct...

Howard Richardson

IRS and State Tax Representation
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