Ted Talks Taxes: Financial Recovery Resources

Ted Phillips, The Del Ray CPA

(571) 312-1169

FAX (571) 227-7907

Ted@TheDelRayCPA.com

114 E. Randolph Avenue

Alexandria, VA 22301

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Some Post-Season Notes

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As always, I would like to thank my clients for another successful and productive tax season, even given the unusual times we are still living through. I appreciate your patience during our busy time, and love the opportunities I get to catch up on your lives.

In the coming months we will be finishing up extended returns and special issues for clients; please contact me if you need assistance with tax planning, a letter from a taxing authority, or any other issues. Thank you!

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Assistance with COVID-19 Recovery

The government has provided multiple avenues for people impacted by the pandemic to receive financial assistance, beyond the stimulus payments and unemployment benefits that are often discussed. Below are a few that you may not be aware of:

Increased Child Tax Credit--for 2021 only, the American Rescue Plan increased the credit that families receive per dependent child, and is allowing some families to start collecting these funds beginning in July 2021, instead of waiting until next filing season. The maximum credit allowable, previously $2,000 per child, is currently up to $3,600 per child under age 6, and up to $3,000 per child ages 6 to 17. These credit levels phase out for those with higher incomes, starting at $75,000 for single filers or $150,000 for married couples. IRS is currently setting up a website for taxpayers to opt in or out of receiving funds early this year.

Funeral Assistance--FEMA is able to disburse aid to those planning funerals for individuals who died or likely died for COVID-related reasons. Applications are being accepted over the phone if you call 844-684-6333; the process should take about 20 minutes. See the FEMA website for additional information.

Help for Housing, Food and Bills--USA.gov has collected a number of government resources intended to help those who were seriously financially impacted by the pandemic. On their website , you can look into ways to obtain mortgage forbearance, protection from eviction, reduced costs for internet access, a hold on student loans, or access to meal programs.

I also encourage everyone to periodically check their state's finance/taxation department website to see if there are any new assistance programs that might apply to them. Benefits.gov is another comprehensive resource for finding any federal and state programs you might be able to take advantage of.

Keep Track for Next Year

If you have invested in any form of cryptocurrency (BitCoin, LightCoin, DogeCoin etc.), please keep in mind that we need to report on your tax returns when you sell crypto or convert it to cash to buy something. Please keep track of the date of purchase of the crypto, the price paid for it, how much you sold it for, and when. For now, IRS looks at these sales just as if you had sold property like stocks or real estate, so we need to report and pay taxes on any capital gains.

We will also be asking next year if you received the third stimulus payment that was sent to qualifying taxpayers in late March 2021. This will not be taxable income, but as with the first two checks, if you were eligible and did not receive it, we will ask for it when we file 2021 returns.

Our secure document-transfer portal remains open year-round if you need to send me sensitive information or documentation:

Link to Document Portal

Please contact the office if you have not yet used the portal and would like to be invited.