inner-header1

What Utah Businesses Should Know About Employee Retention Tax Credits


The past year has caused a significant strain on the local economy, especially impacting local businesses. As a result of the pandemic, businesses have been eligible for many tax breaks to help them stay afloat during these trying times.

If your Utah business was hit hard over the last year, you might want to consider taking advantage of the employee retention tax credit. Established in March 2020 in the CARES Act, the employee retention tax credit has been expanded upon since the December relief package, and the American Rescue Plan Act signed in March 2021.

Why should your business take advantage of the employee retention tax credit? AA Tax & Accounting Services, LLC is ready to walk you through how your Utah-based business can gain substantial benefits by claiming this tax credit.

How the Employee Retention Tax Credit Works

When the employee retention credit was initially created as part of the CARES Act, it provided eligible businesses with refundable credits of 50% of up to $10,000 in qualified wages paid per employee in 2020. In summary, eligible businesses would receive a tax credit of up to $5,000 per employee last year.

Since then, some changes have been made to the employee retention tax credits to expand them even further — providing Utah businesses with even more tax breaks. In March 2021, the American Rescue Plan Act was signed into law, increasing the eligibility of businesses and adjusting the date that the credit needed to be claimed. The biggest adjustment to the employee retention credits is that eligible businesses cannot deduct up to 70% of up to $10,000 in qualified wages paid per employee per quarter in 2021. This means that eligible businesses would receive a potential annual tax credit of $28,000 per employee this year.

For businesses struggling to make ends meet, the employee retention tax credits provide a significant bonus.

Is My Utah Business Eligible?

Not all businesses are eligible to receive the employee retention tax credit — its purpose is to focus on businesses that were hit hardest by the COVID-19 pandemic.

Eligibility for the 2020 employee retention credit is determined by if your business experiences a full or partial shutdown due to a government order limiting commerce, travel, or meetings, or if your business saw more than a 50% quarterly decline in gross receipts.

Because of the expanded parameters of the employee retention tax credit in 2021, business eligibility was also adjusted slightly. Eligibility was expanded to include businesses that underwent a full or partial shutdown or experienced more than a 20% quarterly decline in gross receipts.

Tax Consulting Services in Cedar City, Utah

Navigating business taxes is already an overwhelming process, and with the adjustments to the employee retention tax credits between 2020 and 2021, it’s even more confusing. Because of the complexity of the tax credits, we recommend consulting certified public accountants like AA Tax & Accounting Services for help making any decisions related to your business taxes.

From one-time tax consulting services to ongoing consulting services, our tax consultants work with many clients as their tax advisor and tax preparer — ensuring that your tax team understands your taxes backward and forwards. Our team has the experience to provide you with the most effective strategies for maximizing deductions and tax credits with our tax consulting services.

The AA Tax & Accounting Services team can help you execute the right tax strategies and determine if your Utah business is eligible for the employee retention tax credits. Contact us to schedule an appointment.

Farm Owner? Here’s What You Should Know About Doing Taxes for Farmers


Not many people enjoy tax season, especially when you own and operate a farm. As a farmer, you deal with many different income sources, expenses, deductions, and credits, all of which can make filing your tax return even more complicated. If you’re a farm owner and are struggling to understand how taxes work for farmers, you’re not a lot. To help make filing your taxes a bit less daunting, the team at AA Tax & Accounting Services, LLC has put together a guide to filing taxes as a farmer.

Determine If You’re Considered a Farmer

To make the most of the credits and deductions associated with farming, you need to be classified as a farmer in the eyes of the Internal Revenue Service (IRS). Do you own property that produces fruits and vegetables that are purchased on-site by the local community? Do you grow produce in your backyard and sell it at a roadside stand?

According to the IRS, a farmer is someone who “cultivates, operates, or manages a farm for profit, either as an owner or a tenant.” This can range from operations on a ranch and range to orchards and groves, and it can involve raising livestock and poultry or growing produce.

In most cases, you will not qualify as a farmer if you are a low-end operation growing fruits and vegetables in your backyard to sell as a side hustle. This income would be considered hobby income because your primary occupation isn’t farming-related, which means you would not have access to the same tax breaks as a qualified farmer.

Report on Your Farming Income

Come tax season, you need to be able to report all streams of income for the past year. While your primary source of income may be from sales of crops, there are a variety of types of farming income that need to be reported. A few of these include:

  • Selling livestock
  • Selling produce, grain, and other products
  • Distributions from a cooperative
  • Prizes from livestock competitions
  • Agricultural program payments
  • Crop insurance proceeds
  • Federal crop disaster payments

There are quite a few types of farming income that need to be reported on come tax season. Because of this, you must keep a record of all income throughout the year so you can easily and effectively report income on your tax return.

Understand Which Expenses Can Be Deducted

As a farmer, there are quite a few deductions you can take advantage of. These include:

  • Seeds and plants
  • Chemicals
  • Feed
  • Fertilizers and lime
  • Insurance
  • Veterinary costs for livestock

While farmers can make a lot of deductions on their tax return, there are a few expenses that can not be deducted:

  • Living expenses not related to farm income
  • Value of deceased animals
  • Inventory losses
  • Personal losses
  • Expenses from raising livestock or growing produce for personal use

Take Advantage of Tax Breaks

While there are plenty of opportunities for you to receive tax breaks from expensing qualified deductions, there are additional tax breaks and credits that farmers can take advantage of.

  • Home Office – Is your personal residence also the home of your farm? If a portion of your home is used exclusively for your farming operation, you may be able to make the most of the home office deduction.
  • Net Operating Loss – Because farming income can be extremely unpredictable and is dependent on the success of a crop, you can deduct losses when they exceed your other income from the year. When applicable, this loss can be deducted from income in the previous two years, allowing you to receive a refund. You can also opt to carry this net operating loss forward for up to 20 years.
  • Fuel Credits – When operating your farm with gasoline or fuel, you may be eligible to claim a credit on the excise taxes you paid. Certain requirements and limitations include not receiving a credit or refund for taxes on dyed diesel fuel and dyed kerosene.

Call for Tax Consulting Services for Farm Owners

From one-time tax consulting services to ongoing consulting services, our tax consultants work with many clients, including farm owners, as their tax advisor and tax preparer. With our team, you can have peace of mind knowing that your tax team understands your farming taxes backward and forwards. We have first-hand experience working with farm owners to provide you with the most effective strategies for maximizing deductions and tax credits with our tax consulting services.

The AA Tax & Accounting Services team can help you execute the right tax strategies for your farming operation. Contact us to schedule an appointment.

What Utahns Need To Know About How Cryptocurrency Is Taxed


In recent years, you may have heard the term cryptocurrency being thrown around in everyday conversation. You may even dabble in cryptocurrencies yourself. While this new decentralized, digital store of value and medium of exchange is all the rage, it also leaves many individuals wondering what to do come tax season.

Whether you have Bitcoin of your own, or you have another form of cryptocurrencies such as Litecoin, Ripple, or Dogecoin, you must understand how it is taxed, so you don’t have the Internal Revenue Service knocking at your door for owed taxes. Cryptocurrencies that are bought, sold, or mined are all taxable, which means you need to report this income on your tax return.

To ensure you understand all tax obligations for cryptocurrency, the team at AA Tax & Accounting Services has put together a quick guide so you can confidently file your tax return by the new deadline of May 17.

When to pay taxes on cryptocurrency

When determining if you need to pay taxes on any cryptocurrency, you need to take stock of any taxable events you’ve encountered over the past year. These taxable events typically occur upon the sale or trade of crypto — meaning that you won’t owe taxes simply for buying or holding onto cryptocurrency, but only if a sale or transaction takes place.

You may be liable for cryptocurrency taxes if you made any of the following transaction during the previous tax year:

  • Traded crypto to fiat currency
  • Traded cryptocurrency to virtual currency
  • Received cryptocurrency as the result of a fork
  • Received crypto as compensation for goods or services

With any of these transactions, you need to consider capital gains and capital losses on your crypto. If any of these transactions resulted in a profit gain, that income is taxable and needs to be reported. However, if you incurred a loss from the transaction, you can write off the loss when filing this year’s tax return.

Although you may have received cryptocurrency as a gift, this crypto exchange will not incur taxes unless it is higher than the gift exemption amount. To ensure you avoid dealing with tax penalties, it’s important that you accurately calculate any gains and losses on any crypto transactions that have taken place. Without accurate record-keeping, you’re putting yourself at risk of an IRS penalty.

How much do I owe on my cryptocurrency?

Every person’s taxes are different, which is why there isn’t a solid answer we can give you regarding how much you will owe after using cryptocurrency. The primary consideration for how much you will owe depends on how long you have held onto your cryptocurrency and whether you earned a profit or experienced a loss.

Your tax rate is determined by how long you’ve had your cryptocurrency. For instance, if you have had Dogecoin for more than one year, you will be required to pay a long-term capital gains tax rate on any profits you make from a sale. But if you’ve had your Dogecoin for only a few months, your profits will be taxed at your standard income tax rate.

Any profits you earn from the sale of cryptocurrency are taxable income and must be reported to the IRS. However, not all sales result in profits. If you experience any losses related to your cryptocurrency, you have the option to reduce your taxable income by a maximum of $3,000, and those losses can be carried over to future years.

Tax consulting services in Cedar City, Utah

Determining exactly how much you owe on your crypto transactions can be overwhelming. If you aren’t sure where to start, AA Tax & Accounting Services’ tax consultants can walk you through the process with our tax consulting services.

The AA Tax & Accounting Services team can help you execute the right cryptocurrency tax strategies to save you money. Contact us to schedule an appointment.

Should I File A Tax Extension?


The deadline to file your taxes is right around the corner on May 17, extended from April 15. However, you may be questioning whether you should file a tax extension request with the Internal Revenue Service (IRS), which would grant you additional time to file your tax return. If the tax extension request is approved, your filing deadline is pushed to October 15. Although the date to file your taxes is pushed out, you are still required to pay any owed taxes by the tax deadline.

But under what circumstances should you submit IRS Form 4868 asking the IRS for a tax extension? AA Tax & Accounting Services has put together a list of common reasons for requesting an extension.

Incomplete Tax Documentation

Depending on your situation, you may have a lot of documents to procure to file this year’s tax return accurately. If you’re waiting on documents to arrive or you’ve misplaced the W-2 that your employer sent, you shouldn’t file and submit your taxes without it.

Instead, you’re better off applying for a tax extension with the IRS so you can properly fill out a tax return with all the necessary tax documentation to minimize the need for corrections.

Unexpected Events

Sometimes life just happens, and things get in the way. If you intended to file your taxes with the Internal Revenue Service by April 15, but life events delay your ability to file on time, you may want to consider applying for a tax extension. Unexpected life events include the death or illness of a family member, encountering a natural disaster, or other events that hinder your ability to file. Even though an explanation isn’t required to file for a tax extension, it’s best to only apply when you fit within one of these reasons.

IRA Conversions

Filing for a tax extension isn’t always for unexpected reasons. Sometimes you may opt to file for an extension as a strategic decision so that you can increase your tax savings. If you converted a traditional IRA into a Roth IRA during the tax year, you must pay taxes on the entire balance. To avoid paying tax on the total balance of the converted IRA, you can “recharacterize” a Roth IRA back into a traditional IRA. This process can take time, which means you may benefit from a tax extension so you can lessen your tax obligations.

Late-Payment Penalties

Whether you file your taxes by the April 15 or October 15 deadline, you are required to pay back any owed taxes by the filing deadline. If your taxes aren’t paid by the deadline, you can expect to face expensive Internal Revenue Service penalties.

For each month after the missed deadline, you will owe an additional one-half percent on the amount of taxes owed. Missing the tax filing deadline also comes with penalties from the IRS, costing you an additional five percent per month, for a maximum penalty of 25 percent.

Tax Consulting Services in Cedar City, Utah

If you’re unsure whether filing for a tax extension is the right choice for you, we recommend consulting certified public accountants like AA Tax & Accounting Services for help making any decisions related to your tax return.

From one-time tax consulting services to ongoing consulting services, our tax consultants work with many clients as their tax advisor and tax preparer — ensuring that your tax team understands your taxes backward and forwards. You can have peace of mind knowing that our team has the experience to provide you with the most effective strategies for maximizing deductions and tax credits with our tax consulting services.

The AA Tax & Accounting Services team can help you execute the right tax strategies and decide if a tax extension is the best choice. Contact us to schedule an appointment.

What Medical Expenses Can I Deduct From My Taxes?


Medical expenses add up quickly, especially if the costs aren’t covered and reimbursed through your health insurance. If you or your dependents have racked up medical expenses, you might have the opportunity to claim them as a deduction on your next tax return.

To ensure you’re making the most of the medical expense deduction, AA Tax & Accounting Services is here to breakdown how it works.

Are medical costs tax-deductible?

Suppose you or a dependent have a high volume of medical expenses. In that case, you’ll be pleased to know that the Internal Revenue Service allows you to deduct unreimbursed medical expenses from your tax return.

However, there are stipulations to the types of medical expenses that can be counted towards your tax deductions.

When filing your tax return, you can deduct qualified medical expenses if they equal more than 7.5% of the previous year’s adjusted gross income.

For instance, if your adjusted gross income is $75,000, any amount exceeding the first $5,625 of medical expenses can be deducted. This means that if your medical expenses totaled $15,000, you would be eligible to deduct $9,375.

Medical expenses eligible for tax deductions

To prepare you for the upcoming tax season, we’ve put together a list of qualified medical expenses that can be deducted from your tax return:

  • Acupuncture or other forms of alternative treatments
  • Addiction treatment, which includes food and lodging at a rehabilitation center
  • Adaptive equipment including wheelchairs, shower seats, and other disability accommodations
  • Birth control pills
  • Blood-testing kits and strips for diabetes
  • Breast pumps and pumping equipment
  • Chiropractic services for medical purposes
  • Diet food and supplements when prescribed by a doctor to alleviate a specific medical condition
  • Eye exams and, if applicable, contact lenses and prescription glasses
  • False teeth
  • Hearing aids or other hearing equipment
  • Home improvements to increase accessibility due to a medical disability
  • Household help for nursing care services
  • Lodging when traveling out-of-town for a medical treatment
  • Organ transplants
  • Prosthetic limbs
  • Psychiatric care
  • Reproduction costs covering abortions, vasectomies, and fertility treatments
  • Service animals meals, training, and veterinarian expenses
  • Sex-reassignment surgery and hormone therapy to treat gender identity disorder (GID)
  • Special education
  • Programs supporting physical or mental conditions such as dyslexia or ADHD
  • Public transportation costs to and from medical visits
  • Wigs for those with a medical condition such as cancer or alopecia

You must track all your medical costs throughout the year, so come tax season, you can easily determine if you need the requirements to deduct your medical expenses from your tax return. Hold onto all copies of receipts and make a note of which expenses haven’t been reimbursed so you can reduce your tax bill with little headaches.

Additional rules to be aware of

If you’re planning to deduct medical expenses from your tax bill, here are two additional rules to be aware of:

1. You are only allowed to include medical expenses that were paid during the tax year.

2. If you were reimbursed for any medical expense through your insurance, that bill cannot be included in your tax deduction.

How to claim the medical tax deduction

Now that you’re aware of what types of medical expenses can be deducted from your tax bill, you must set yourself up for success come tax season.

You will be required to itemize your deductions, which is why it’s helpful to hold onto and organize all receipts you receive throughout the year.

Tax consulting services in Cedar City, Utah

If you have a high amount of medical expenses, AA Tax & Accounting Services can help you better understand how to maximize your medical expense deduction to save you the most money on your upcoming tax bill.

No one should go into tax season with their questions unanswered. Our team of tax consultants has the experience navigating the most effective strategies for maximizing their deductions and tax credits with our tax consulting services.

The AA Tax & Accounting Services team can help you execute the right tax strategies to save you money on your medical expenses. Contact us to schedule an appointment.

Tax Info For Living In Utah But Working In Another State


Tax season can be stressful — and if you find yourself living in Utah and working in another state, you might be unsure how to navigate filing your tax returns this year. Depending on your status as a Utah resident, you may be required to pay tax on any income earned elsewhere.

No matter where you earn an income, you will need to file a tax return. When earning income in one state while living in another, you might find yourself filing a state tax return in your state of employment. While certain states like Alaska, Texas, Wyoming, Florida, New Hampshire, Washington, South Dakota, Nevada, and Tennessee don’t charge income tax, the state of Utah does.

To help you navigate this scenario, AA Tax & Accounting Services has put together a quick guide explaining when you will be required to pay taxes on income earned in another state.

Are you a Utah resident on non-resident?

If you live in Utah and work in another state, your state income tax requirements will be dependent on your Utah state residency.

When your permanent residence is in Utah, and you travel outside of the state for work, how long are you in the other state?

Do you have another residence in the other state?

If you leave your Utah residence for less than half a year, your income in another state is taxable in Utah. However, if you are a non-resident of Utah, which is classified as someone who has property in Utah but lives elsewhere for more than half the year, you aren’t required to pay Utah state income tax on any earnings from the other state since you aren’t legally a Utah resident.

What a non-resident needs to know

If you have earned income in Utah but are considered a non-resident of the state, you must file a Utah state tax return. In most cases, this income is earned while conducting business in the state, and you will need to file a Utah tax form called Form TC 40B.

Am I required to file taxes in both states?

In most situations, you will be required to file state income tax. There are a few scenarios where you might not be required to file taxes in both states.

The first reason is if the state doesn’t charge state income tax, such as Alaska, Texas, Wyoming, Florida, and a few others.

Another situation in which you might not be required to file taxes in both states is when a state has an agreement with bordering states. This agreement, known as a reciprocal tax agreement, allows individuals to live in one state and work in the other without filing two state tax returns.

Because Utah does not have reciprocity, you will likely need to file two separate state tax returns: a permanent resident and another non-resident.

How to claim credits for out of state tax

When filing your tax return as a Utah resident and claiming income that you earned out-of-state, you have the option to claim a credit for any income taxes paid to another state. This rule prevents you from facing double taxation on income earned out-of-state.

Tax consulting services in Cedar City, Utah

If you’re dealing with a unique situation, such as living in Utah and working in another state, we recommend consulting certified public accountants like AA Tax & Accounting Services when filing your tax return.

From one-time tax consulting services to ongoing consulting services, our tax consultants work with many clients as their tax advisor and tax preparer — ensuring that your tax team understands your taxes backward and forwards. You can have peace of mind knowing that our team has the experience to provide you with the most effective strategies for maximizing deductions and tax credits with our tax consulting services.

The AA Tax & Accounting Services team can help navigate tax season smoothly when living and working in separate states. Contact us to schedule an appointment.

What First Time Investors Should Know About Tax Time


You have your entire future laid out in front of you, and with proper planning for retirement, you’ll be able to settle down without worrying about finances. Investing in your future early on is a great way to set yourself up for success — but it’s never too late to start. If you’re a new investor heading into your first tax season, you might be wondering what you need to know about your taxes and investments.

We know that tax season can be daunting, and with multiple investments, it can seem even scarier — it doesn’t have to be that way! The team at AA Tax & Accounting Services is here to help you navigate the tax process so you can feel confident in your investments. Here are our top tips for first-time investors for tax time.

Understand Realized Gains

If you’re new to investing, you might not fully comprehend how investments are taxed. Something you need to consider is the realized gains on your investment. If you purchase a stock that sees an increase in value, you won’t be expected to pay taxes on those gains every tax season. You will only be expected to pay taxes when you “realize” the gain when you sell your stock shares.

For example, if you purchase 50 shares of a stock for a cost of $50 but the stock value increases to $75, you won’t be required to pay taxes on the $25 gain until you choose to sell your shares. With any investment, you can expect to see values rise and fall over time. If your stock share goes down in value, it will be a similar situation to realized gains where you won’t face any tax implications until your shares are sold.

Long Term & Short Term Gains

Now that you’re on your way to becoming an investing pro, you must understand the difference between short-term capital gains and long-term capital gains before heading into tax season.

Your investments’ tax implications will vary depending on how long you have held onto that particular stock. This means that your gains will be taxed at the short-term capital gains rate if you sell your shares after only holding them for a year or less. If you have held onto the stock for more than a year, your gains will be tased at the long term capital gains rates. Knowing how long you have held each of your investments can help you determine if selling or holding onto your shares a little longer is the best choice financially.

The tax rate for short-term capital gains is determined by your specific income tax bracket, while long term capital gains tax rates are typically lower than your income rate and not specific to an income bracket.

Offset Income with Capital Losses

If a few of your investments didn’t pay off this year and you have more losses than gains, you can apply up to $3,000 of your investment losses and apply that against your income. Although experiencing a loss on the investment isn’t the goal, applying the loss against your income allows you to reduce your annual income and potentially offset having a higher-taxed income. If your losses are more than $3,000, you can apply that loss to a future tax season as well.

Tax Consulting Services in Cedar City, Utah

As a first time investor, it can be difficult to understand the tax implications of your investments. If you’d like to feel confident in executing the right tax strategies to save you the most money, we recommend consulting certified public accountants like AA Tax & Accounting Services when preparing this year’s tax return.

From one-time tax consulting services to ongoing consulting services, our tax consultants work with many clients as their tax advisor and tax preparer — ensuring that your tax team understands your taxes backward and forwards. You can have peace of mind knowing that our team has unparalleled experience dealing with taxes on investments and can provide effective strategies for maximizing deductions and tax credits with our tax consulting services.

The AA Tax & Accounting Services team can help you execute the right tax strategies to save you money come tax season. Contact us to schedule an appointment.

Are Bonuses Taxable?


Receiving a bonus at work is always an exciting surprise. But before you spend it all to fund a vacation or pay off some bills, you might be wondering if your bonus is taxable.

The short answer: yes, your bonus is taxable.

Unlike the regular paycheck you receive from your employer, any bonus payments are considered supplemental wages, which means your bonus will be taxed — and they will be taxed more than the standard income rate. These same tax rules apply to more than bonuses, including moving costs, tips, overtime, and severance.

When you receive a bonus, your employer will also withhold a designated amount sent to the Internal Revenue Service. AA Tax & Accounting Services has put together a quick guide to help you calculate how much of your bonus will be taxed.

How to Calculate the Taxes on Your Bonus

How much of your bonus will you be able to put the deposit into the bank? To determine how much of your bonus will be taxed, consider the following factors:

  • Social security tax – As of 2020, you are required to pay socials security tax on any compensation received up to $137,000. Your employer will take out 6.20% from your bonus check for social security until you hit this benchmark.
  • Medicare tax – Any compensation you receive much have medicare tax factored in. This means your employer will deduct 1.45% of the total bonus for Medicare tax.
  • Federal income tax – The standard federal tax rate is 25% — however, under tax reform, this number has been adjusted to 22% for bonus withholdings. If your employer withholds more than 22% for federal income tax, you will receive that overpayment back in the form of a tax refund when you file your annual taxes.
  • State income tax – The majority of states require residents to pay state income tax, which applies to bonuses. Depending on the state you work in, your employer will withhold the designated amount required by state law.
  • 401k contributions – If you contribute to a 401k with your standard paycheck, you will likely have a portion withheld from your bonus as well. This percentage will vary depending on the number you have set with your employer
  • .

All of these must be considered when determining how much of your bonus check will be withheld. To help illustrate these withholdings, we’ve put together an example calculation to demonstrate how you could calculate these numbers based on a $15,000 bonus check:

  • $15,000 x 25% = $3,750 in Federal tax
  • $15,000 x 5.25% = $787.50 in State tax (if applicable)
  • $15,000 x 1.45% = $217.50 in Medicare tax
  • $15,000 x 6.2% = $930 in Social Security tax

Using this example, you would deduct a total of $5,685 from the $15,000 bonus — which is a tax rate of 37.9%!

Tax Consulting Services in Cedar City, Utah

Suppose you have received a bonus or will be receiving one and have questions regarding supplemental income tax withholding. In that case, we recommend consulting certified public accountants like AA Tax & Accounting Services. Our team can help you better understand how your bonuses will be taxed and prepare you for the upcoming tax season, where it might be possible to recoup some of it through a tax refund. We have the experience to guide business owners on the best strategies for maximizing their deductions and tax credits with our tax consulting services.

The AA Tax & Accounting Services team can help you navigate the tax process when receiving supplemental income from your employer. Contact us to schedule an appointment for tax consulting services.

Your Stimulus Check Tax Questions Answered


The COVID-19 pandemic has impacted the lives of many — from getting sick yourself or knowing someone with a positive test result to losing a job or business to being stuck inside working remotely. There have been a lot of obstacles to overcome. Because of the impact on the economy, many United States citizens received stimulus checks from the government.

While everyone likes waking up to a surprise deposit in their bank account, it might leave you with a lot of questions.

What are the qualifying factors to receive the money?

Will you need to pay taxes on the stimulus check?

There’s no reason to stress about your stimulus check as you head into tax season. To help you better understand who receives stimulus checks, how you’ll receive the payment, and if the payment will be taxed, AA Tax & Accounting Services, LLC has put together a quick guide to answer some of the most common questions about the stimulus checks.

Who Qualifies for a Stimulus Check?

Individuals will receive a stimulus check if they:

  • Have a social security number – Those with a social security number are eligible to receive the stimulus payment, as well as an additional payment for any children in the household with a social security number.
  • Are not claimed as a dependent – If claimed as a dependent, the individual will not be eligible to receive the stimulus check. The person claiming them would receive it.
  • Earned within the qualifying bracket – Individuals filing taxes solo and earned less than $87,000 are eligible to receive the payment. For joint filers, they must earn less than $174,000 jointly to receive the stimulus check. Those earning more than the specified amount will receive a reduced payment.

These are only a few of the qualifications to receive a stimulus check, but the most common ones to be aware of.

How Will You Recieve Your Stimulus Check?

If you continue to be eligible for upcoming stimulus checks, you’ll continue to receive them the same way you have previously. The three ways for you to receive a stimulus check are through a direct deposit (which will automatically be set up if you received your 2019 tax return via direct deposit), a paper check that you will receive by mail, or by a debit card.

If you did not receive any of the stimulus checks that went out in 2020 or early 2021 but were eligible for the payment, it’s not too late to receive it. When filing your tax return this year, you can claim the tax credit.

Will I Need to Pay Taxes on My Stimulus Check?

If you are eligible to receive a stimulus check, you will not be required to pay taxes on the payment when you file your tax return this year — this goes for stimulus checks received in both 2020 and 2021. In addition, your stimulus payment will not be counted as income used to determine your eligibility for government assistance.

Tax Consulting Services in Cedar City, Utah

Do you still have questions regarding stimulus checks?

If so, AA Tax & Accounting Services can help you better understand the stimulus check process and how it impacts your tax returns. No one should go into tax season with their questions unanswered. Our team of tax consultants has the experience navigating the most effective strategies for maximizing their deductions and tax credits with our tax consulting services.

The AA Tax & Accounting Services team can help you execute the right tax strategies to save you money. Contact us to schedule an appointment.

Federal And Utah State Tax Changes For 2021


2021 is here, which means it’s time to be out with the old and in with the new. The same goes for your taxes! While you will still be paying taxes in 2021, there are some new tax laws in place that might change your tax return.

Tax changes don’t need to be stressful or confusing. AA Tax & Accounting Services, LLC is here to walk you through the tax changes that will be impacting Utah residents in 2021 so you can feel confident as we head into tax season.

2021 Tax Changes for Utah

Although there are a few changes for Utah residents, there aren’t as many tax law adjustments as there have been in previous years. This is because the legislative session was shorter than usual because of the COVID-19 pandemic. Since sessions were shorter, fewer tax changes were put in place on January 1, 2021. While there aren’t many tax changes to be aware of, it’s still important that you have a full understanding of the changes and what they mean for you.

To help you feel more confident in these adjustments, here are two tax changes that will impact Utah residents and how they will impact your tax return.

Utah Excise Tax Changes

An excise tax refers to the taxes placed on manufactured goods that businesses often pay and pass along to the consumer. The taxes are levied when the product is manufactured instead of at the sale of the good because the tax costs are passed along to the consumer, the products’ price increases or decreases according to the current tax rate.

As of January 1, 2021, the state of Utah imposes an excise tax rate of 1.2% on the sale of prepaid wireless telecommunications services.

Other Utah Tax Changes

The excise tax rate isn’t the only change that Utah residents need to be aware of. As of January 1, 2021, individuals can use the revenue from the state’s income and personal property taxes for more than just public or higher education (like they were able to in the past). The allowable use has been expanded to be used for services supporting children and individuals with disabilities.

Tax Consulting Services in Cedar City, Utah

While there were fewer tax changes than usual in 2021 due to the COVID-19 pandemic, the adjustments to tax rules can still be challenging to navigate — especially if you’re dealing with a unique situation. Suppose you’d like to feel confident in how these tax changes affect your taxes. In that case, we recommend consulting certified public accountants like AA Tax & Accounting Services when making any decisions or changes to your tax return.

From one-time tax consulting services to ongoing consulting services, our tax consultants work with many clients as their tax advisor and tax preparer — ensuring that your tax team understands your taxes backward and forwards. You can have peace of mind knowing that our team has the experience to provide you with the most effective strategies for maximizing deductions and tax credits with our tax consulting services.

The AA Tax & Accounting Services team can help you execute the right tax strategies to save you money come tax season. Contact us to schedule an appointment.

Call Us For An Appointment
435.267.0136
SIGN UP FOR OUR NEWSLETTER