March Newsletter
Hello Caroline County Chamber of Commerce Partners, Members and Friends,

March marks our Best in Business Awards Night 2021!
We are so excited to bring you these outstanding leaders for 2020.
Nominated by their peers, they truly exemplify the heart of Caroline County!

Do not miss this fun event! Tickets are on sale now at carolinechamber.org and include a delicious dinner by Tenchi, a fresh homemade cupcake from Carrie Sue's Cupcakery or SaraDipity.
What movie would be complete without popcorn?
Bubba Bob's Country Treats will be there selling their famous kettle corn!

We will have our scholarship wine pull and a basket full of goodies to raffle off!

It is the premier event of the year thus far!

We hope you have a great March! For complete details on what we have going on just drop by our Facebook or website today!

Thank you for your continued support!

Tracey
Welcome New Partner!
Brenton Realty Group
Do not miss our 2021 Best in Business Awards
Join us to celebrate the 2020 Best in Business on March 23, 2021 at 6:00 PM. Instead of the traditional sit down dinner we have turned our recognition into a movie! Drive in and enjoy your food delivered to your car! Inside or out you can safely socialize and help us recognize the these businesses and our community. Popcorn will be on sale from Bubba Bob's! Dinner is catered by Tenchi Restaurant and desserts are by Carrie Sue's Cupcakery and SaraDipity.
Tickets are on sale now!

American Pickers will be in Maryland
Sign up to be a vendor or to enter your dog in our first ever Amateur Dog Show! Visit our website for complete details!
Caroline Non-Profit Care in Action! March 11, 2021
Mark your calendar for March 11th! It is our first Care in Action Day for 2021.

We are not able to meet together, but we can be innovative and help each other in new ways!

Click on the link below to find out how you and your team can help.


You must be a Caroline County Chamber of Commerce member and a non- profit, but if you would like to join the Caroline Non-Profit Network reach out to Tracey Snyder for complete details at tracey@carolinechamber.org
Chamber Partner Updates
Take a walk around tour of the new Mach-E walk at Preston Automotive Group!
Preston Automotive Group represents 11 brands in Maryland, Delaware, and Virginia where they proudly serve the Delmarva Peninsula and Baltimore area. Preston is dedicated to being an important part of their local community in every store location, with community as one of the Preston Automotive Group’s core values. Preston’s mission is to provide a superior workplace for their associates so that as a team Preston can provide their guests with a superior customer experience. For more information, go to prestonmotor.com.
Avery Hall is a leading insurance agency that provides personalized service to individuals, families, organizations, and businesses, all with the same degree of efficiency and compassion. Avery Hall’s impeccable reputation for expertise in the industry coupled with its emphasis on customer relationships make it the ideal agency for those with every type of insurance need.
Welcome new member!
ShoreToBeFun Photography - Photographs by SG (Steve) Atkinson

Creating beautiful photos of places and people. Working with both businesses and individuals to supply photographs you need. 

It could be a Head Shot or photographs for many purposes in your business; Website, social media, marketing materials, photographing your corporate event, even just a photograph to decorate your wall. I also work with individuals and families to create precious memories.

As a Fine Art Photographer I produce greeting cards with Delmarva Scenes and as Wall Art.

I would like to be part of your team as your photographer. Don't know how a photographer fits into your team? Let's have a talk. I want to get to know you and your business.  
What's New for
2020 Tax Returns


As always, taxpayers should be aware of several key items involving credits, deductions, and refunds when filing their tax returns. Let's take a look:

1. Recovery Rebate Credit/Economic Impact Payment. In January, the Treasury Department and the IRS began sending the second round of Economic Impact Payments (EIP2) to millions of Americans as part of the implementation of the Coronavirus Response and Relief Supplemental Appropriations Act. As with the first round of Economic Impact Payments (EIP1), taxpayers don't need to take any action to receive these payments.
Taxpayers who didn't receive an advance payment should review the eligibility criteria when they file their 2020 taxes because many people, including recent college graduates, may be eligible for a credit.
Taxpayers who received an Economic Impact Payment should have received Notice 1444, Your Economic Impact Payment, and should keep it with their 2020 tax records.
Individuals who received the full amount for both Economic Impact Payments do not need to complete information about the Recovery Rebate Credit on their 2020 Form 1040 or 1040-SR because they've already received the full amount of the Recovery Rebate Credit as advance payments.
Eligible individuals who did not receive an Economic Impact Payment – either the first or the second payment – can claim a Recovery Rebate Credit when filing their 2020 Form 1040 or 1040-SR this year. They may be eligible to claim the Recovery Rebate Credit on their tax year 2020 federal income tax return if:
they didn't receive an Economic Impact Payment, or their Economic Impact Payment was less than the full amount of the Economic Impact Payment for which they were eligible.

2. Option to Use Prior Year Income Amounts. Also new this year is the option to use prior year income amounts (2019) when computing the Earned Income Tax Credit and the Additional Child Tax Credit.

3. Interest on Refunds is Taxable. Taxpayers who received a federal tax refund in 2020 may have been paid interest. Refund interest payments are taxable and must be reported on federal income tax returns. In January 2021, the IRS will send Form 1099-INT, Interest Income to anyone who received interest totaling $10 or more.

4. Charitable Deductions. In 2020, taxpayers who don't itemize deductions may take a charitable deduction of up to $300 for cash contributions made in 2020 to qualifying organizations. Please note that this amount applies whether filing individual or joint returns. In 2021, this amount increases to $600 for joint filers ($300 for single filers).

5. Virtual Currency. If in 2020, you engaged in a transaction involving virtual currency, you will need to answer the question on page 1 of Form 1040 or 1040-SR. Any gains or losses on virtual currency are reportable as capital gains or losses on the 1040.

6. Form 1099-NEC. Individuals may receive Form 1099-NEC, Nonemployee Compensation, rather than Form 1099-MISC, Miscellaneous Income, if they performed certain services for and received payments from a business in 2020.

7. Pass-Through-Entity Tax, Individuals who may be involved in a pass through entity such as a S-Corp, LLC, etc. can now elect in the State of Maryland to pay the taxes on behalf of the entity instead of by the taxpayer. This can be a benefit to many taxpayers since the State and Local Tax (SALT) Tax can only be deducted up to $10,000 on your Schedule A on the 1040.

8. Maryland Disallowed Tax on Unemployment Insurance in 2020, Individuals who received unemployment insurance in 2020 and had taxes deducted on the Unemployment insurance can now be reimbursed the taxes paid. The State of Maryland has asked taxpayers to be patient as Maryland forms are now being updated to account for the recent change.

9. Employee Retention Credit Eligibility Rules Change, businesses that received Paycheck Protection Funding in 2020 originally were not allowed to apply for the Employee Retention Credits. That changes with the passing of The Taxpayer Certainty and Disaster Tax Relief Act of 2020. Employers can now apply, if applicable for up to $5,000 tax credits per employee in 2020 and $14,000 per employee in 2021 ($7,000 for the 1st and 2nd quarter of 2021.

10. Can I deduct home office expenses since now I am a remote employee? Sure, if you own and operate a business and use your home to conduct such activity. If you do not own a business, then you are not allowed to deduct home office expenses on your 1040 in 2020. This deduction was no longer applicable with the removal of the 2% miscellaneous deduction on the Schedule A of your 1040 with the passage of the Tax Job and Cut Act.

Don't hesitate to contact the office with any questions or concerns about these and other tax changes related to the pandemic.

Jerry E. Housand, Jr., CPA, CCIFP
Mullen, Sondberg, Wimbish & Stone, PA