Hertsel Shadian, Attorney At Law, LLC

Hertsel Shadian, Attorney At Law, LLC Resolving tax and business problems—providing peace of mind. Attorney emphasizing taxation, general business, estate planning, and non-profit law.

IRS Tax Tip 2024-27: Adoptive parents: Don’t forget about the Adoption Tax CreditTaxpayers who adopted or started the ad...
04/03/2024

IRS Tax Tip 2024-27: Adoptive parents: Don’t forget about the Adoption Tax Credit

Taxpayers who adopted or started the adoption process in 2023 may qualify for the Federal adoption credit. This credit can be applied to international, domestic, private and public foster care adoption.

Here is some basic information to help people understand this credit and whether they can claim it when they are filing their taxes:
• The maximum adoption credit taxpayers can claim on their 2023 tax return is $15,950 per eligible child.
• There are income limits that could affect the amount of the credit.
• Taxpayers should complete IRS Form 8839, Qualified Adoption Expenses, to figure how much credit they can claim on their tax return.
• An eligible child must be younger than 18. If the adopted person is older, they must be unable to physically take care of themselves.
• This credit is non-refundable. This means the amount of the credit is limited to the taxpayer's taxes due for 2023. Any credit left over from their owed 2023 taxes can be carried forward for up to five years.

Qualified expenses include:
• Reasonable and necessary adoption fees.
• Court costs and legal fees.
• Adoption related travel expenses like meals and lodging.
• Other expenses directly related to the legal adoption of an eligible child.

In some cases, a registered domestic partner may pay the adoption expenses. If they live in a state that allows a same-sex second parent or co-parent to adopt their partner's child, these may also be considered qualified expenses.

Expenses may qualify even if the taxpayer pays them before an eligible child is identified. For example, some future adoptive parents pay for a home study at the beginning of the adoption process. These parents can claim the fees as qualified adoption expenses.

Taxpayers who adopt their spouse's child can't claim this credit.

For more information, see https://www.irs.gov/taxtopics/tc607 [Topic no. 607, Adoption credit and adoption assistance programs].

Topic No. 607 Adoption Credit and Adoption Assistance Programs

A hopeful harbinger of good news for 2023.
02/20/2023

A hopeful harbinger of good news for 2023.

Alignable's February Small Business Hiring Report reveals that 54% of SMB owners are seeking to hire new employees, while only 46% have hiring freezes in place.

The Internal Revenue Service announced yesterday that the third round of Economic Impact Payments will begin reaching Am...
03/14/2021

The Internal Revenue Service announced yesterday that the third round of Economic Impact Payments will begin reaching Americans over the next week. Following approval of the American Rescue Plan Act, the first batch of payments will be sent by direct deposit, which some recipients will start receiving as early as this weekend, and with more receiving this coming week. Additional batches of payments will be sent in the coming weeks by direct deposit and through the mail as a check or debit card. The vast majority of these payments will be by direct deposit. No action is needed by most taxpayers; the payments will be automatic and, in many cases, similar to how people received the first and second round of Economic Impact Payments in 2020.

IR-2021-54, March 12, 2021 — The Internal Revenue Service announced today that the third round of Economic Impact Payments will begin reaching Americans over the next week.

04/29/2020

The Pandemic Unemployment Assistance (PUA) program in Oregon is open and accepting applications. Self-employed, contract, and gig workers not eligible for regular unemployment benefits who are filing for the first time should use the instructions and initial application form in the link below to complete their first claim. Additional certifications will be required for each week an unemployed worker continues to be out of work due to COVID-19, and will be posted on the linked page in the coming days.

Treasury, IRS launch new tool to help non-filers register for Economic Impact PaymentsIRS.gov feature helps people who n...
04/10/2020

Treasury, IRS launch new tool to help non-filers register for Economic Impact Payments

IRS.gov feature helps people who normally don’t file get payments; second tool next week provides taxpayers with payment delivery date and provide direct deposit information

To help millions of people, the Treasury Department and the Internal Revenue Service today launched a new web tool allowing quick registration for Economic Impact Payments for those who don’t normally file a tax return.

The non-filer tool, developed in partnership between the IRS and the Free File Alliance, provides a free and easy option designed for people who don’t have a return filing obligation, including those with too little income to file. The feature is available only on IRS.gov, and users should look for Non-filers: Enter Payment Info Here to take them directly to the tool.

“People who don’t have a return filing obligation can use this tool to give us basic information so they can receive their Economic Impact Payments as soon as possible,” said IRS Commissioner Chuck Rettig. “The IRS and Free File Alliance have been working around the clock to deliver this new tool to help people.”

The IRS reminds taxpayers that Economic Impact Payments will be distributed automatically to most people starting next week. Eligible taxpayers who filed tax returns for 2019 or 2018 will receive the payments automatically. Automatic payments will also go in the near future to those receiving Social Security retirement or disability benefits and Railroad Retirement benefits.

How do I use the Non-Filers: Enter Payment Info tool?
For those who don’t normally file a tax return, the process is simple and only takes a few minutes to complete. First, visit IRS.gov, and look for “Non-Filers: Enter Payment Info Here.” Then provide basic information including Social Security number, name, address, and dependents. The IRS will use this information to confirm eligibility and calculate and send an Economic Impact Payment. Using the tool to get your payment will not result in any taxes being owed. Entering bank or financial account information will allow the IRS to deposit your payment directly in your account. Otherwise, your payment will be mailed to you.

“Non-Filers: Enter Payment Info” is secure, and the information entered will be safe. The tool is based on Free File Fillable Forms, part of the Free File Alliance’s offerings of free products on IRS.gov.

Who should use the Non-Filers tool?
This new tool is designed for people who did not file a tax return for 2018 or 2019 and who don’t receive Social Security retirement or disability benefits or Railroad Retirement benefits. Others who should consider the Non-Filers tool as an option, include:
Lower income: Among those who could use Non-Filers: Enter Payment Info tool are those who haven’t filed a 2018 or 2019 return because they are under the normal income limits for filing a tax return. This may include single filers who made under $12,200 and married couples making less than $24,400 in 2019.
Veterans beneficiaries and Supplemental Security Income (SSI) recipients: The IRS continues to explore ways to see if Economic Impact Payments can be made automatically to SSI recipients and those who receive veterans disability compensation, pension or survivor benefits from the Department of Veterans Affairs and who did not file a tax return for the 2018 or 2019 tax years. People in these groups can either use Non-Filers: Enter Payment Info option now or wait as the IRS continues to review automatic payment options to simplify delivery for these groups.
Social Security, SSDI and Railroad Retirement beneficiaries with qualifying dependents: These groups will automatically receive $1,200 Economic Impact Payments. People in this group who have qualifying children under age 17 may use Non-Filers: Enter Payment Info to claim the $500 payment per child.
Students and others: If someone else claimed you on their tax return, you will not be eligible for the Economic Impact Payment or using the Non-Filer tool.

Coming next week: Automatic payments begin
Eligible taxpayers who filed tax returns for either 2019 or 2018 and chose direct deposit of their refund will automatically receive an Economic Impact Payment of up to $1,200 for individuals or $2,400 for married couples and $500 for each qualifying child. Individuals who receive Social Security retirement or disability benefits, SSDI or who receive Railroad Retirement benefits but did not file a return for 2019 or 2018 will automatically receive a payment in the near future.

Coming next week: Get My Payment shows Economic Impact Payment date, helps with direct deposit

To help everyone check on the status of their payments, the IRS is building a second new tool expected to be available for use by April 17. Get My Payment will provide people with the status of their payment, including the date their payment is scheduled to be deposited into their bank account or mailed to them.

An additional feature on Get My Payment will allow eligible people a chance to provide their bank account information so they can receive their payment more quickly rather than waiting for a paper check. This feature will be unavailable if the Economic Impact Payment has already been scheduled for delivery.

More Information on Economic Impact Payments
The IRS will post additional updates on IRS.gov/coronavirus on these and other issues.

Non-Filers: Enter Payment Info Here Get Coronavirus Tax Relief Get Info on Economic Impact Payments Get Your Refund Status Do Your Taxes for Free Get Your Tax Record View Your Account Make a Payment Forms and Instructions 1040 and Schedules 1-3 Individual Tax Return Other 1040 Schedules Information....

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