Advance Child Tax Care Credit Payments to Arrive Automatically

The recently enacted American Rescue Plan includes an expanded refundable Child Tax Credit (CTC) for the 2021 tax year. Many taxpayers will receive part of their credit in 2021 before filing their 2021 tax return. This will take the form of a monthly payment of up to $300 per month for each child under age 6, and up to $250 per month for each child age 6 and above. These monthly payments will be made to approximately 39 million households, which covers about 88 percent of all children in the U.S.

The payments will be made automatically and are scheduled to begin on July 15 and continue through December. The payments will be made through direct deposit, paper check or debit cards.

For tax year 2021, families claiming the CTC will receive up to $3,000 per qualifying child between the ages of 6 and 17 at the end of 2021. They will receive $3,600 per qualifying child under age 6 at the end of 2021. Under the prior law, the amount of the CTC was up to $2,000 per qualifying child under the age of 17 at the end of the year. The increased amounts are phased out for households with incomes over $150,000 for married taxpayers filing a joint return and qualifying widows or widowers, $112,500 for heads of household, and $75,000 for all other taxpayers.

For additional information, please contact Gray, Gray & Gray at (781) 407-0300.

New Massachusetts Tax Incentives & Credits Announced

New Massachusetts Tax Incentives & Credits AnnouncedThe Massachusetts legislature was very busy during the last few weeks of the session just concluded, passing a fiscal year 2015 state budget of approximately $36.5 billion. Among the provisions passed and enacted were several new and expanded tax credits and incentives that offer taxpayers in the Commonwealth a number of opportunities to reduce their tax burden. Continue reading

Can You Get a Tax Credit for Summer Child Care?

Summer CampSchool is out for summer, and for many families that means one or more children will be enrolled in childcare or a summer day camp during the workday. If you have a child in daycare during the summer months you may qualify for a federal Child and Dependent Care Credit. Although this credit is not limited to the summer months, many families find themselves paying for childcare only during non-school periods, and may not be aware of their eligibility to claim the credit. Continue reading

Tax Credits Available in Federal Empowerment Zones

By Dana Fortini, Supervisor at Gray, Gray & Gray, LLP

Federal Empowerment ZonesIf your business is located in an economically distressed location, you may be able to apply for significant tax credits if you have employees who live and work in what is known as a federally-designated “Empowerment Zone.” But you have to hurry!

Empowerment Zones were introduced in 1993 as part of a federal government effort to reduce unemployment and generate economic growth in distressed cities and regions. Businesses in Empowerment Zones were offered federal tax incentives and the awarding of grants to encourage hiring and participation in the plan. Although the original program ended in 2011, it was revived again through the American Taxpayer Relief Act in 2013, but expired again at the end of the year. Continue reading

Federal Tax Watch Special Issue – January 2013

What’s the scoop on the new legislation passed by Congress to avert the fiscal cliff?

How will the tax provisions affect you?

Gray, Gray & Gray brings you the answers to these questions and more with a four-page special issue of the Federal Tax Watch newsletter.

Inside the Federal Tax Watch Special Issue – January 2013:
• Fiscal Cliff Legislation: How tax changes in the new act may affect you
• Provisions Primarily Affecting Individuals
• Provisions Primarily Affecting Businesses
• New Healthcare Taxes Taking Effect in 2013
• Tax Planning Considerations

Click here to view this important newsletter now available on the Gray, Gray & Gray website.

Did you miss Gray, Gray & Gray’s “Beyond the Fiscal Cliff” Webinar on January 7, 2013?  Get caught up with the recording! Click here to view it today.

January 7th Beyond the Fiscal Cliff Webinar Recording

Unreimbursed Business Expenses May Not Be Deductible

In a recent tax court summary opinion (Stidham, T.C. Summ. Op. 2012-61), the tax court ruled that a taxpayer was not entitled to take a tax deduction for unreimbursed businesses expenses that could have been reimbursed according to the employer’s “Business Travel & Entertainment Policies and Procedures.”  

The takeaway here is to recognize the importance of having a written expense reimbursement policy, and for employees and stakeholders to follow it.   

Questions? Give our Tax Department a call at 781.407.0300 or visit our website!

“Home Sweet Homestead?” Making a Homestead Declaration

An “estate of homestead” is an interest in a principal residence that can help safeguard the owner (or the owner’s surviving spouse and dependent children) against the claims of creditors by protecting the property from execution and forced sale.

In Massachusetts, homeowners can obtain a Declaration of Homestead by filing a homestead declaration at the appropriate registry of deeds. All homesteads must be filed in the county in which the residence is located. Continue reading

Hiring Your Child Can Have Tax Advantages

Summer is approaching quickly, which means teenagers will be looking for summer jobs.  If you own a business, it can be a wise move to place your child on the payroll. Below are some positive tax outcomes from hiring your child into your family business: Continue reading

It’s Time to Start Planning for 2012 Taxes!

Tax Day for 2011 has come and gone and while you may think gathering tax documents and evaluating your finances will be off your mind for another year, planning for your income taxes is a year round exercise. It never hurts to be prepared and stay organized throughout the year to ensure when 2012’s tax day arrives, you are ready and have everything in place. Below are some helpful tips to think about in order to prepare for next year’s tax filing and keep your finances in check for the year to come: Continue reading

Better to Give It Away Before Uncle Sam Takes It Away

By Michael D. Koppel, CPA
Gray, Gray & Gray, LLP

 As a tax accountant my job is to make sure my clients meet their legal obligations to the Internal Revenue Service, while helping them to retain as much of their assets as possible. It is a delicate balance that may soon be tipped further in favor of the tax collector. This is especially true for successful business owners who have managed to accumulate significant savings. Continue reading