Advance Child Tax Credit Payments 2021

Hello this is Debra Marie the Tax Queen coming back with another wonderful post where I will be sharing some helpful information on the Advance Child Tax Credit Payments.  So, let’s begin!

There was an important tax change for families this summer—and you’ve probably already got the surprise.  But is it really a surprise when you knew about it when the American Rescue Plan was passed earlier this year telling taxpayers who were eligible would be getting an advance child tax credit payment in July?

The credit isn’t new. And you would ask, what do you mean it’s not new, because we have never received the payment in prior years.  Well do you remember at the end of each year when you filed your taxes, you’d get the child tax credit in a lump sum.  For the 2020 tax year the child tax credit was $2,000 per qualifying dependent child under age 17.  6 If the amount of the credit exceeds the tax owed, then the taxpayer generally was entitled to a refund of the excess credit amount up to $1,400 per child.  Remember?  Of course, you do.  Most of you were getting EIC (Earned Income Credit) along with this Child Tax Credit.

Not only is it more money, but families will receive the credit each month in the form of advance payments.

There have been many questions asked about this significant change.  So here is what you need to know.

How much is the credit?
For 2021, the maximum child tax credit is $3,600 per child for those five and under and $3,000 per child ages 6 to 17. That works out to $300 per month for children who are five and younger and $250 for those between the ages of 6 and 17.

So, if my 2021 credit is $3,600, how much will I get as an advance payment?
$300 per month. Here’s the math: Half of the credit will be distributed in six monthly installments through December 2021. The remainder will be calculated and paid out at tax time in 2022.

How will the IRS know how much to send me?
The IRS will estimate the credit based on your 2020 tax return. If you have not yet filed, or if your 2020 tax return has not been processed, the IRS will use the info on your 2019 tax return.

Are there any income limits?
The credit has two phaseouts. Phaseouts mean that your payment will go down as your income goes up.

The number that matters to most taxpayers is adjusted gross income, or AGI, found on line 11 on your 2020 Form 1040 or line 8b on your 2019 Form 1040).

Taxpayers who file Form 2555 or have income from Puerto Rico or American Samoa you may need to adjust.

The first part of the phaseout has to do with income. Now just to let you know I have broken this information down so if you are having trouble understanding or want more information on any of these subjects, I suggest you go talk to a tax professional and we will be able to discuss it more in depth.

Now back to phaseout #1 – if your income exceeds $75,000 for individual taxpayers, $150,000 for married taxpayers filing jointly, and $112,500 for taxpayers filing as head of household, the credit will be reduced in increments to $2,000 per child. If that amount sounds familiar, you are right: That was the amount of the credit before any changes were made in 2021.

Phaseout #2 – reduces the credit below $2,000 per child if your income exceeds $400,000 for married taxpayers filing jointly and $200,000 for everyone else. Even if you have no income, you can receive payments if you otherwise qualify. To qualify you must have a qualifying child and you—and your spouse, if married filing jointly—have a Social Security number (SSN) or an Individual Taxpayer Identification Number (ITIN).

Who is a qualifying child?
The rules are pretty much the same as before, except that the age is 17 or younger—it is no longer 16. The child must still be your dependent with a valid SSN and be your son, daughter, stepchild, eligible foster child, brother, sister, stepbrother, stepsister, half-brother, half-sister, or a descendant of any of them—like a grandchild or nephew. The “old” child tax credit support and residency rules still apply.  You are probably wondering about the other dependents like the boyfriend, the dad, the mom, the cousin…you get the point. This is not the same as the $500 Credit for Other Dependents.

How will I get paid?
Most families will receive payments via direct deposit. The IRS will use the bank account information on your most recently filed 2019 or 2020 tax return, the Non-Filer Tool, or from a federal agency like the Social Security Administration that provides your benefits. If the IRS does not have your banking info, they will mail a check. Now If you don’t want the advance payments you can unenroll through the IRS portal. If you file as married, both spouses need to unenroll—if just one of you does, you will receive half of the payments.

When—and what time—will I get my payment?
The first child tax payments will go out on July 15 via direct deposit each month through December of 2021. If your banking information, address, or if you have any other change, you can update it using the IRS portal.

Are these payments taxable and will payments be offset if I owe taxes or child support?
No.

So why wouldn’t you want the advance payments?
Well you might not want the payment because you would rather claim the full credit on your 2021 return, or you know you will not be eligible for the full credit on your 2021 return.

Will there be a repayment obligation?
Well sort of. The payments that you receive are based on an estimate of the amount of child tax credit you would be entitled to claim on your 2021 tax return. When you file your 2021 return, you may have to pay back the extra if you received too much. But most families will get the right amount.  If you do not, then there is this thing called repayment protection which is a safe harbor and are subject to phaseouts.

The full repayment protection amount is $2,000 for each “extra” child that you add to your 2021 tax return or if the IRS used an estimate for your advance payments, they would multiply the difference of $2,000 between the number of qualifying children that will be claimed on your 2021 tax return. You can use that amount to offset any overpayment.

You are probably thinking to yourself “I have no clue what she just said?”  Ok let’s say you claimed two qualifying children on your 2020 tax return, but now you just have one on your 2021 tax return. Your full repayment protection will be $2,000 ($2,000 x one extra qualifying child). So, if you were overpaid by $2,000, you would offset it with your $2,000 repayment protection amount and not owe anything.  Now with the phaseouts that we discussed earlier well that math is not complicated.   If your 2021 AGI is less than $40,000 for individual taxpayers, $60,000 for married taxpayers filing jointly, or $50,000 for taxpayers filing as head of household, then you will qualify for the full repayment protection amount.

As your income goes up, the value of your repayment protection amount will go down. You will not qualify for any repayment protection when your AGI reaches $80,000 for individual taxpayers, $120,000 for married taxpayers filing jointly, and $100,000 for taxpayers filing as head of household.

But don’t forget those that have the available credit and it’s more than your advance payments, you can claim the remaining credit on your 2021 return and may be entitled to a refund.  If you’re divorced and you alternate custody and you aren’t entitled to claim your child in 2021, you may want to unenroll so that you don’t receive an overpayment. Remember you can unenroll by going to the IRS Portal.

Did you guys get all of that.  I hope so.  But don’t worry, for 2022 there are no plans for expanding the credit or the payments so far

Well thank you for hanging out with me to go over the Advance Child Tax Credit Payment.   So, until next time this is Debra Marie the tax queen signing off. Bye!

Click here to listen to the podcast

JUNETEENTH has FINALLY become a Federal Holiday.

Juneteenth honors the end to slavery in the United States and is considered the longest-running African American holiday.

President Joe Biden signed legislation Thursday June 17, 2021 establishing Juneteenth a federal holiday commemorating the end of slavery.

Join us as we honor Black Americans in every area of endeavor and throughout history this Juneteenth and beyond. Stay Educated:

  • What is Juneteenth? Here’s an informative 26-minute video
  • Click here to watch a narrative interview series on the Black Lives Matter platform
  • Movies & Documentaries:
    • 13th (Netflix or free on Youtube)
    • The Kalief Browder Story (Netflix)
    • I Am Not Your Negro (Netflix)
    • Just Mercy
  • Learn about Modern Day Enslavement – Prison Industrial Complex
  • Other books, podcasts can be found here and here!

Stay Connected:

Fico Scores, Advantagescores and Credit Reports Explained

Hello, this is Debra Marie the Tax Queen coming back with another wonderful post
where I will be sharing some helpful information on fico scores, advantagescores and
credit reports.  I will be going over the basics so you’ll have some knowledge when
researching this topic yourselves. So, let’s begin!

You’re probably wondering why you need to know about this stuff. Well when you go to
buy a car, a house or even apply for a credit card this is what the lenders will be
checking. They will be getting you info from three national credit bureaus
(Equifax, Experian and TransUnion) and they compete to capture, update and store
credit histories on most U.S. consumers. The fourth bureau collects what the Big Three
don’t. A range of data falls under the fourth-bureau umbrella, including rent payments,
cellphone and utility bills, magazine subscriptions and gym memberships. But we won’t
talk to much about that one…actually this is all we will talk about when it comes to the
fourth bureau.

So, what are credit bureaus?

A credit bureau is a company that collects and maintains individual credit information and sells it to lenders, creditors, and consumers in the form of a credit report. While there are dozens of credit bureaus across the U.S., most consumers are familiar with the big three: Equifax, Experian, andTransUnion.

Ok, now that you understand the functions of the bureaus it is now time to get to the
juicy stuff…. THE SCORES!  Let’s start with the FICO Score!

What is a FICO Score?

Well first off, FICO is an abbreviation for the Fair Isaac Corporation, the first company
to offer a credit-risk model with a score. Bill Fair and Earl Isaac are the founders.
A FICO Score is a three-digit number based on the information in your credit reports. It
helps lenders determine how likely you are to repay a loan. This, in turn, affects how
much you can borrow, how many months you have to repay, and how much it will cost
(the interest rate).
What are the credit score range?
Credit Score Rating % of People
580-669 Fair 17%
670-739 Good 21%
740-799 Very Good 25%
800-850 Exceptional 21%
THE MOST POPULAR CREDIT SCORE COMPANY YOU MAY HAVE
HEARD OF IS CREDIT KARMA…. BUT HOW ACCURATE ARE THEY?
WELL HERE IS A LITTLE INFORMATION ABOUT CREDIT KARMA

Credit Karma is a for-profit business that makes money by giving you a free credit score
in exchange for learning more about your spending habits and charging companies to
serve you targeted advertisements. Their business model is to earn commissions
off loan products you purchase through its site. Although the site positions itself as a
trusted adviser, its motivation is to sign you up for new loans. Overuse of credit can
have financially catastrophic results. Use Credit Karma to monitor your score–not to
received unbiased advice.

Also, the scores and credit report information from Credit Karma comes from
TransUnion and Equifax, two of the three major credit bureaus.  They also provide
Vantage Score credit scores independently from both credit bureaus.
And because Credit Karma uses only two of the three major credit bureaus, a
consumer’s credit score might not be entirely accurate. Although Vantage
Score’s system is accurate, it’s not the industry standard; the companies that will
approve or deny loan applications are more likely to look at FICO scores.
So, what’s the difference between a Fico score and a vantage score?

Although both the FICO Score and Vantage Score use a credit range of 300 to
850, there are some key differences in how the two scores are calculated. FICO
gives more weight to a consumer’s payment history, while Vantage Score
emphasizes total credit usage and balances.

As mentioned earlier although a Vantage Score’s system is accurate, it’s not the
industry standard. Credit Karma works fine for the average consumer, but the
companies that will approve or deny your application are more likely to look at
your FICO score.

What other companies are similar to Credit Karma and uses
the vantage score.
1. Credit Sesame
2. Quizzed
3. Credit.com
4. WalletHub

Now what’s the difference between a credit report and a FICO
score?

Your credit report contains personal information, credit account
history, credit inquiries and public records. This information is reported by your lenders
and creditors to the credit bureaus. … These four categories are: identifying
information, credit accounts, credit inquiries and public records.
A FICO Score is a three-digit number based on the information in your credit reports. It
helps lenders determine how likely you are to repay a loan. This, in turn, affects how
much you can borrow, how many months you have to repay, and how much it will cost
(the interest rate).

How can I get my credit report?

By logging on to AnnualCreditReport.com, you can check your credit reports for free
once every 12 months from each of the major credit bureaus—Equifax, Experian,
and TransUnion. However, these reports will not give you a credit score.
While you can pay one of the reporting companies for your credit score, you really don’t
have to anymore. There are a number of websites and credit card companies that will
give you your credit score for free.

Here are five free services and five credit card companies that provide credit scores to consumers, along with what each of them offers and how they differ.
Credit Card Companies That Provide Free Credit Scores.

In addition to the services listed above, many credit card companies offer their
customers, and sometimes others, a free look at their credit scores. They include:

1. Discover Card—FICO Statement
Discover Card holders receive their TransUnion FICO credit score for free
on each monthly statement.

  1. Barclaycard—Credit Factors
    Barclaycard customers get a free FICO score on their monthly statements.
    In addition, they can see up to two factors that affect their credit score.
    These might be things like “balances on a bank card or revolving accounts
    too high compared to credit limits”.

3. Capital One Card—Credit Wise
Formerly known as Credit Tracker, Capital One’s Credit Wise service is
available to anyone, whether or not you’re a cardholder with the company.
Through this service, you can get access to your Vantage Score 3.0 every
month and be alerted to any changes in it.

4. First Bankcard—Monthly Lender ScoreFirst National Bank offers its credit card users a free FICO Bankcard Score
9, which is a score tailored to credit card lending. It is not, in other words,
the score a mortgage lender would use when deciding whether you can
borrow money to buy a house, but it will still give you some idea of where
you stand. Your score is updated once a month.

  1. Walmart Credit Card—Electronic Score
    If you’re a Walmart credit card holder, you’ll receive a free FICO score
    each month if you sign up for electronic monthly statements. You’ll also be
    able to see two “reason codes” affecting your score.
    Well I hope you enjoyed our little information session about fico scores,
    advantagescores, and credit reports.  If you are curious or have questions that
    you would like for me to do a podcast on please leave me a message or email
    me at debra@dmtbookkeeping.com or any of my social media platforms under
    dmtbookkeeping.  As always thank you for listening to my podcast and until next
    time …. Bye!

NRA – Dooms Day!

Hey this is Debra Marie The Tax Queen coming back atcha. There has been a lot of discussion regarding the dissolution of the NRA due to Fraud and even having a lawsuit against them by Attorney General Letitia James.  So, in this post, we will be discussing why the NRA may be finished and what may be the cause of their demise.

So, let’s get started!

So, New York Attorney General Letitia James Moves To Dissolve The NRA After Fraud Investigation.

The attorney general of New York acted Thursday to dissolve the National Rifle Association following an 18-month investigation that found evidence the powerful gun rights group is “fraught with fraud and abuse.”

Attorney General Letitia James claims in a lawsuit filed Thursday, August 6, that she found financial misconduct in the millions of dollars and that it contributed to a loss of more than $64 million over a three-year period.

The suit alleges that top NRA executives misused charitable funds for personal gain, awarded contracts to friends and family members, and provided contracts to former employees to ensure loyalty. The New York Attorney General is alleging that senior leaders of the non-profit group wasted millions of dollars of members’ money on their own luxury travel, personal gifts from retailers like Neiman Marcus and Bergdorf Goodman, family vacations to the Bahamas and big game hunts in Africa. Ms. James said that the four named defendants – Mr. LaPierre, Wilson Phillips, Joshua Powell and John Frazer – “instituted a culture of self-dealing, mismanagement and negligent oversight at the NRA that was illegal, oppressive and fraudulent”.

Seeking to dissolve the NRA is the most aggressive sanction James could have sought against the not-for-profit organization, which James has jurisdiction over because it is registered in New York. James has a wide range of authorities relating to nonprofits in the state, including the authority to force organizations to cease operations or dissolve. The NRA is all but certain to contest it.

The NRA said in a statement that the legal action was political, calling it a “baseless premeditated attack on our organization and the Second Amendment freedoms it fights to defend… we not only will not shrink from this fight – we will confront it and prevail.”

Now let’s get this straight. The NRA does not represent the 2nd amendment they represent gun manufactures.  So, if you think this is an attack on the 2nd amendment you are 100% mistaken.

Within the NRA’s 5 million members are dissidents who have been clamoring for reform for years, only to be defeated as NRA leadership and its 76-member board of directors closed ranks behind Executive Vice-President Wayne LaPierre.  In depositions cited by the lawsuit, LaPierre does not deny the expenditures but justifies them as legitimate expenses.

“I’ve been trying to wake people up for years as to the corruption,” said Tim Harmsen, a lifetime NRA member and host of the Military Arms Channel online. He goes on to say “The NRA is broken on the inside. It needs new leadership. Wayne has to go. It’s almost as if he’s purposely trying to run the organization into the ground.”

Ms. James alleges that the gun lobby is rife with corruption and no longer has the right to call itself a non-profit charity.

Let me explain in a short and simple way of how a nonprofit should work so that you can understand why the NRA may be dissolved like any nonprofit who does not go by the guidelines of having a charity.  There are six areas where ethical issues arise in the nonprofit sector: compensation; conflicts of interest; publications and solicitation; financial integrity; investment policies; and accountability and strategic management.

According to National Council of Nonprofits, when people join a nonprofit board of directors, they agree to conduct prudent use of assets, make decisions in the best interest of the organization, and ensure that the organization abides by applicable laws and acts ethically.

Is the NRA a charity? I thought that charities could not be involved in politics.  Well, the answer to that question is that The National Rifle Association (NRA) is not a charity in the same way that, say, Red Cross and United Way are charities. They are, however, both tax-exempt organizations.

The NRA is not a section 501(c)(3) organization. Rather, it is organized as a section 501(c)(4) organization. Those are described in the Tax Code as civic leagues or organizations not organized for profit but operated exclusively for the promotion of social welfare, or local associations of employees, the membership of which is limited to the employees of a designated person or persons in a particular municipality, and the net earnings of which are devoted exclusively to charitable, educational, or recreational purposes.”

Like section 501(c)(3) organizations, section 501(c)(4) organizations are tax-exempt for federal income tax purposes. But payroll, sales, real estate, and other taxes may still apply.

However, there is one significant difference: Section 501(c)(4) organizations may engage in lobbying so long as it pertains to the organization’s mission. The trade-off, as you might have guessed, is that donations made to 501(c)(4) organizations are typically not deductible by the donor as charitable contributions for federal income tax purposes.

So now that we got that out of the way. Is the NRA a Charity?  You can now see the reason behind the decision of New York Attorney General Letitia James.  It has nothing to do politically and it is not an attack on the organization and the Second Amendment freedoms it fights to defend. It is solely being done to protect the members and the taxpayers from fraud of mishandled funds.

Now you didn’t think I’d end this podcast without mentioning our president Donald Trump, did you? PRESIDENT DONALD TRUMP on Thursday called New York’s lawsuit against the National Rifle Association “a very terrible thing” and suggested the organization move to Texas and lead a very good and beautiful life,” calling the state “an appropriate place” for the NRA.

Now what he said makes no sense whatsoever, because no matter where they move it is still illegal and unethical to do what the leadership is doing and have been doing for years within the NRA.

So, there you have it folks.  A breakdown of the Lawsuit against the NRA aka the National Rifle Association.

Thank you for hanging out with me I hope you enjoyed and until next time this is Debra Marie The Tax Queen …. Bye.

Unemployment Insurance Relief During COVID-19 Pandemic!

Unemployment Insurance Relief During COVID-19 Pandemic!

unemployment

Well let’s start off with the background of the necessity of the new guidelines to the Unemployment Insurance under the CARES Act.  On March 18, 2020, the Families First Coronavirus Response Act (FFCRA), was signed into law providing additional flexibility for state unemployment insurance agencies and additional administrative funding to respond to the COVID-19 pandemic. The Coronavirus Aid, Relief, and Economic Security also known as the (CARES) Act was signed into law on March 27 which helped to expand states’ ability to provide unemployment insurance for many workers impacted by the COVID-19 pandemic, including independent contractors and other workers who are ordinarily ineligible for unemployment benefits.


What is Unemployment Insurance?

Well, Unemployment Insurance is a joint state-federal program that provides cash benefits to eligible workers. Each state administers a separate UI program, but all states follow the same guidelines established by federal law. Unemployment insurance payments (benefits) are intended to provide temporary financial assistance to unemployed workers who are unemployed through no fault of their own. Each state sets its own additional requirements for eligibility, benefit amounts, and length of time benefits can be paid. Generally, benefits are based on a percentage of your earnings over a recent 52-week period, and each state sets a maximum amount. Benefits are subject to federal and most state income taxes and must be reported on your income tax return. You may choose to have the tax withheld from your payment. Also, I’d like to add that this is an employer’s tax that is paid each quarter.

To apply for Unemployment Benefits you must contact your state’s unemployment insurance office .

 

Now let’s get to the questions that I’ve been asked since this bill was passed that relates to the COVid-19 pandemic.

 

I am an independent contractor. Am I eligible for unemployment benefits under the CARES Act?


You may be eligible for unemployment benefits, depending on your personal circumstances and how your state chooses to implement the CARES Act. States are permitted to provide Pandemic Unemployment Assistance (PUA) to individuals who are self-employed, seeking part-time employment, or who otherwise would not qualify for regular unemployment compensation. To qualify for PUA benefits, you must not be eligible for regular unemployment benefits and be unemployed, partially unemployed, or unable or unavailable to work because of certain health or economic consequences of the COVID-19 pandemic.

The PUA program provides up to 39 weeks of benefits, which are available retroactively starting with weeks of unemployment beginning on or after January 27, 2020 and ending on or before December 31, 2020. The amount of benefits paid out will vary by state and are calculated based on the weekly benefit amounts (WBA) provided under a state’s unemployment insurance laws. Under the CARES Act, the WBA may be supplemented by the additional unemployment assistance provided under the Act.

 

My regular unemployment compensation benefits do not provide adequate support given the unprecedented economic challenges caused by the COVID-19 outbreak. Can I expect to receive additional relief?


Yes, depending on how your state chooses to implement the CARES Act. The new law creates the Federal Pandemic Unemployment Compensation program (FPUC), which provides an additional $600 per week to individuals who are collecting regular UC (including Unemployment Compensation for Federal Employees (UCFE) and Unemployment Compensation for Ex-Servicemembers (UCX), PEUC, PUA, Extended Benefits (EB), Short Time Compensation (STC), Trade Readjustment Allowances (TRA), Disaster Unemployment Assistance (DUA), and payments under the Self Employment Assistance (SEA) program). This benefit is available for weeks of unemployment beginning after the date on which your state entered into an agreement with the U.S. Department of Labor and ending with weeks of unemployment ending on or before July 31, 2020.

 

My employer has remained open because it is essential. I’m not sick, nor is anyone in my household sick.  I do not have children or care for someone who cannot care for themselves.  However, I’m afraid of getting Coronavirus from customers coming to the store, so I quit and filed for unemployment.  Can I obtain benefits under the CARES Act?


No. Under the CARES Act, you may be eligible for benefits if you meet one of the circumstances listed in the Act, but none include the scenario described. On these facts, you are not eligible for Pandemic Unemployment Assistance (PUA) because you do not meet any of the qualifying circumstances.

There are, however, circumstances under the CARES Act in which specific, credible health concerns could require an individual to quit his or her job and thereby make the individual eligible for PUA. For example, an individual may be eligible for PUA if he or she was diagnosed with COVID-19 by a qualified medical professional, and although the individual no longer has COVID-19, the illness caused health complications that render the individual objectively unable to perform his or her essential job functions, with or without a reasonable accommodation. However, voluntarily deciding to quit your job out of a general concern about exposure to COVID-19 does not make you eligible for PUA. If you believe your employer’s response to the possible spread of COVID-19 creates a serious safety hazard or if you think your employer is not following OSHA standards, you can file a complaint with the Occupational Safety and Health Administration.

As a general matter, you are likely to be eligible for PUA due to concerns about exposure to the coronavirus only if you have been advised by a healthcare provider to self-quarantine as a result of such concerns. For instance, an individual whose immune system is compromised by virtue of a serious health condition, and who is therefore advised by a healthcare provider to self-quarantine in order to avoid the greater-than-average health risks that the individual might face if he or she were to become infected by the coronavirus will be eligible for PUA if all other eligibility requirements are met.

 

I was furloughed by my employer, but they have now reopened and asked me to return to my job.  Can I remain on unemployment?


No. As a general matter, individuals receiving regular unemployment compensation must act upon any referral to suitable employment and must accept any offer of suitable employment. Barring unusual circumstances, a request that a furloughed employee return to his or her job very likely constitutes an offer of suitable employment that the employee must accept.

While eligibility for PUA does not turn on whether an individual is actively seeking work, it does require that the individual be unemployed, partially employed, or unable or unavailable to work due to certain circumstances that are a direct result of COVID-19 or the COVID-19 public health emergency. In the situation outlined here, an employee who had been furloughed because his or her employer has closed the place of employment would potentially be eligible for PUA while the employer remained closed, assuming the closure was a direct result of the COVID-19 public health emergency and other qualifying conditions are satisfied. However, as soon as the business reopens and the employee is recalled for work, as in the example above, eligibility for PUA would cease unless the individual could identify some other qualifying circumstance outlined in the CARES Act.

 

One of my workers quit because he said he would prefer to receive the unemployment compensation benefits under the CARES Act.  Is he eligible for unemployment?  If not, what can I do?


No, typically that employee would not be eligible for regular unemployment compensation or PUA.  Eligibility for regular unemployment compensation varies by state but generally does not include those who voluntarily leave employment. Similarly, to receive PUA, an individual must be ineligible for regular unemployment compensation or extended benefits under state or federal law, or pandemic emergency unemployment compensation, and satisfy one of the eligibility criteria enumerated in the CARES Act. There are multiple qualifying circumstances related to COVID-19 that can make an individual eligible for PUA, including if the individual quits his or her job as a direct result of COVID-19. Quitting to access unemployment benefits is not one of them. Individuals who quit their jobs to access higher benefits and are untruthful in their UI application about their reason for quitting, will be considered to have committed fraud.

Now to add to this I would like to focus on the High School and College Graduates when it comes to PUA.

 PUA for High School and College Graduates🎓

Graduation season is rapidly approaching. About 1.2 million high school graduates leave high school each year and do not enroll in college, and about 4 million enrolled in higher education at the undergraduate and graduate level will graduate from their program.

Students who lost a job due to COVID-19 during the academic term and graduate this May or June should qualify for PUA based on a job loss, regardless of whether they had a separate offer of employment starting after the academic term.

Students who were not working during the academic term, or who were working but had a separate employment opportunity planned for the summer, may qualify for PUA if that job offer falls through.

Unfortunately, students who were still searching for post-graduation employment opportunities but are not currently working would not qualify.

https://anchor.fm/thetaxqueen/episodes/Unemployment-Insurance-Relief-During-COViD-19-Pandemic-edf1rc

Debra Marie The Tax Queen Podcast

 

What is the purpose for your life insurance policy?

Some purposes for which people buy life insurance are:

▪️To replace their income that would be lost upon their death.

▪️To hire others to replace their contributions to the family that would be lost upon their death (daycare, transportation, cleaning services, lawn services, etc)

▪️To give a business time and resources to replace an employee when a key employee dies.

▪️To pass their estate to their heirs in a tax-friendly fashion.

▪️To pay taxes, administrative fees, and debts upon their death.

▪️To pay for chronic, critical or terminal illness expenses (when the policy has living benefits)

▪️To pay off a mortgage, school loans, business loans, and other debts.

▪️To pay for all final expenses, including funeral, memorial service, burial, transportation, etc.

▪️To leave a gift to charity.

▪️To provide cash value for retirement.

If you would like more information on Life Insurance please visit http://www.chrysalisfinancialcare.com

Tax Free Weekends 2019

BACK TO SCHOOL

It’s that time of year again to start that back-to-school shopping spree.

Back-to-school shopping is one of the biggest shopping seasons for most retail stores. Some states like Maryland and South Carolina just to name a few like to help their fellow residents out by giving them what they call a tax-free holiday weekend.  16 states are participating in this tax-free holiday weekend, which means you won’t have to pay sales tax on certain items purchased. For the other states that choose not to participate, I would assume that their thought on this tax-free holiday weekend didn’t sound to economically appealing.

Having 16 states that are participating in this tax-free holiday gives you the option to cross your state borders and go shoppingso there is no need to worry.

Do you know when your state’s 2019 tax-free weekend starts? Well, below you’ll find the information needed to prepare your day for shopping.  There are links to the “Deal News” page for each state to give you more info if needed.  Do your research on lay-a-ways, online shopping and using discount coupons in combination with this tax-free holiday weekend.

Happy Shopping!

Alabama July 19 – 21
Arkansas August 3 – 4
Connecticut August 18 – 24
Florida August 2 – 6
Iowa August 2 – 3
Maryland August 11 – 17
Massachusetts August 17 – 18
Mississippi July 26 – 27
Missouri August 2 – 4
New Mexico August 2 – 4
Ohio August 2 – 4
Oklahoma August 2 – 4
South Carolina August 2 – 4
Tennessee July 26 – 28
Texas August 9 – 11
Virginia August 2 – 4
Wisconsin No tax holiday in 2019

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Can’t get hired?

So, I’m watching this movie titled “Second Act” which stars Jennifer Lopez as the character Maya Vargas, a supermarket assistant manager who wants a promotion after 15 years of using her skills which led the company into having increased sales and rising revenue with her amazing marketing strategies.    After losing the promotion to a “college-educated” candidate, Mya becomes upset and frustrated and decided to quit her job leaving the company in a bind.  She went on to further prove that “street smarts” are just as valuable as “book smarts.”

What’s the moral of the story?  Well, what I got from it while having a somewhat similar experience minus the horrible boss and wanting a promotion. It was more at trying to find an employer who would accept my experience and certifications and licenses that most college graduates had not obtained. But because they got their book experience from a reputable college/university, it was much easier for them to get their foot in the door.

“I wish we lived in a world where street smart equals book smart.”

At the end of the movie, Maya Vargas ends up proving that you don’t need someone else to acknowledge your skills if you believe in yourself.  So what did she do?  She started her own company in which she partners with other supermarkets, yes including the one who didn’t believe in her ideas.

As I mentioned previously, there are similarities in Maya’s and my story, and it’s that we both started businesses that cater to our expertise.

So remember this, believe in yourself and have the courage to create your own space.

Are “Strippers” Employees or Independent Contractors? 

The legal distinction between an independent contractor and an employee is largely a question of control.

Are there “club” guidelines for the dancers to follow?  For example, do they have to wear a specific type of outfit or do they need to be a certain size or have favorable attributes.  Are they required to work a certain number of hours and if they do not show up will there be monetary consequences?

Most if not all dancers would prefer to work as independent contractors rather than as employees because of the tax implications, but unfortunately their employment status is not a choice it is a decision based on facts.

Ok, let’s go over the ten facts of what an employee is.

  1. The more instructions the employer gives the worker, the more likely the worker is an employee.
  2. The more closely integrated the work is with the employer’s business, the more likely the worker is an employee.
  3. Services rendered personally. If the worker must personally do the work, that tends to suggest employee status.
  4. Continuing relationship. The longer the arrangement’s term between company and worker, the more likely the worker will be considered an employee.
  5. Set hours of work. Set hours (such as 9 a.m. to 5 p.m.) are more consistent with employee status.
  6. Full-time required. Working full-time is more consistent with employee status.
  7. Doing work on employer’s premises. Working on the employer’s premises (as opposed to from home or from a neutral site) is more consistent with employee status.
  8. Order or sequence set. Performing services in a particular order or sequence set by the employer is more consistent with employee status.
  9. Right to discharge. The company’s right to discharge a worker tends to suggest employee status.
  10. Right to terminate. A worker’s right to terminate the relationship without incurring liability to the company suggests employee status.

Independent Contractor

  1. Hiring, supervising, and paying assistants. A person who hires, supervises, and pays his/her own personal assistant is more likely to be an independent contractor.
  2. Significant investment. A worker’s own significant investment tends to indicate independent contractor status.
  3. Realization of profit or loss. A worker’s potential to realize a profit or to suffer a loss tends to suggest independent contractor status.
  4. Working for more than one club owner at a time. Working for more than one club at the same time tends to suggest independent contractor status.

So the answer to the question is most likely the dancers are employees and not independent contractors.

SO WHAT DOES THIS MEAN?

It means that adult entertainment dancers or “strippers” are entitled to the same protections as any employees. 

If they get hurt on the job while dancing, then they should be entitled to medical care and wages under the workers compensation law.

It also means that unless there are drastic changes in payment policies, dancers are entitled to minimum wage and overtime if they work past 40 hours. The Club owner/management also cannot fire a dancer if she gets pregnant.

Club owners are going to have to do business differently by determining how they’re going to have to hire a dancer.

If you want to know if the Covid-19 messed up the strippers money go to my podcast Strippers Classification Status And Their COViD 19 Relief Exclusion!

The US Supreme Court’s Sales Tax Ruling

Online shopping may become more expensive after the U.S. Supreme court ruled on June 21, 2018 that states can require internet retailers to collect sales taxes.

The 5-4 decision broke with 50 years’ worth of legal rulings that barred states from imposing sales taxes on most purchases their residents make from out-of-state retailers.

**Online retailers were previously protected from paying sales tax if they had no physical presence in a state.**

“State and local governments have really been dealing with a nightmare scenario for several years now,” said Carl Davis, research director at the Institute on Taxation and Economic Policy, a Washington think tank. “This is going to allow state and local governments to improve their tax enforcement and to put local business on a more level playing field.”

This will mostly impact the other half of products sold online by third-party merchants on certain marketplaces like Wayfair, eBay, Etsy and Overstock just to name a few. They potentially face the added burden of collecting sales tax in states that begin taxing online sales.

The ruling would present a “compliance challenge” for internet start-ups. Independent merchants who simply post their inventory on online stores are responsible for calculating and paying the various state taxes if they are owed. In the past year, Washington State and Pennsylvania have enacted laws requiring internet retailers to collect taxes on third-party sales. More states are expected to follow suit.

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