SCV Business Journal March 2021

Page 1

Contact: Perry Smith Business Editor Phone: 661-287-5599

S A N TA C L A R I TA VA L L E Y

BUSINESS JOURNAL BJ INSIDE SPOTLIGHTS B4 A message from the SCV

Chamber B5 SCV Chamber events/

advocacy B9 The List: SCV tax

preparation B9 The SCV EDC Econowatch NEWS & FEATURES B1 Preparing for tax season B2 How COVID could impact

your return B6 IRS reminds about online

accounts B10 The future of office space SCV BUSINESS VOICES B1 Henry Mayo B3 SCVEDC B6 M & M Fasteners B7 Mission Valley Bank B10 Audiology Associates FROM THE EXPERTS B2 Paul Raggio: Leadership vs.

management B3 Ken Keller: Deeper into the

profit zone B7 Paul Butler: The importance

of safety first B8 Jeff Prang: Prop. 19 &

inheritance

Email: psmith@signalscv.com Mail: 26330 Diamond Place Suite 100 Santa Clarita, CA 91350 SATURDAY, FEBRUARY 27, 2021  ·  WWW.SIGNALSCV.COM · B1

PREPARING FOR TAX SEASON, COVID EDITION BY EMILY ALVARENGA Signal Staff Writer

A

s tax season gets into full swing after the roller coaster year that was 2020, tax experts say this year will be unlike any other when it comes to filing taxes. The first big change comes as the IRS has moved the initial filing date to Feb. 12, whereas returns usually would already have started being accepted in January. Julie Sturgeon, a certified public accountant, said ahead of that date that a “floodgate” of activity was expected then — which turned out to be exactly what happened. This change has essentially caused tax preparers to lose a third of tax season, added Karol Johnson, an enrolled agent and partner at All Valley Tax. As can be expected, the pandemic has been at the forefront of many tax changes this year for a few reasons. STIMULUS CHECKS Anyone who got a stimulus check in 2020 will have to report it on their taxes, but that money is not taxable income — so it won’t affect your return, according to Johnson. Instead, Johnson explained that anyone who was underpaid in their stimulus could get the difference sent to them as part of their tax return. “There’s some really positive things,” she said. “Let’s say you had a baby last year. We can get the extra stimulus payments on this year’s tax return.” With Congress in talks for a third stimulus payment, those who have had their income increase the past year, or have yet to receive their second stimulus payment, may want to wait to file this year, as it can affect their payment, Johnson added. PAYCHECK PROTECTION PROGRAM LOANS For business owners who received PPP loans in most states, Congress clarified language in the most recent relief bill to make PPP expenses, like rent and payroll,

Certified Public Accountant Julie M. Sturgeon works in her Valencia office during last year’s tax season, which started a little later this year due to COVID-19. PHOTO BY DAN WATSON / THE SIGNAL completely tax-deductible. Currently, California doesn’t allow these deductions, but Assembly Bill 281 was introduced in the Legislature to conform California law with federal law, Sturgeon said. “What I’m hearing is that if businesses have received a PPP loan, and it’s forgiven, their best bet is to go on extension and to wait and see what happens with the state, rather than filing and then having to go back and amend return,” she added. “That makes it a little bit more complicated and probably doesn’t sit very well with a lot of business clients, because they want to get their tax returns done.” SELF-EMPLOYED TAX CREDITS Under the Families First Coronavirus Response Act, employers who provided qualified sick and family leave, for those who, due to COVID-19, were unable to work relating to their own health or a family member’s, were to receive a payroll tax credit to offset the costs for doing so.

With tax form 7202, self-employed individuals can figure in the amount to claim. “If you were off up to 10 days, there is a credit, and it’s a phenomenal credit, on the bottom line of your tax return, especially for sole proprietors,” Johnson said. “It’s a great credit that will help.” UNEMPLOYMENT BENEFITS While stimulus money may not be taxable, unemployment benefits certainly are. Many who didn’t withhold any money from those payments for tax purposes are in for a shock when that money comes due this tax season, added Deborah Ramirez, a KPMG accountant. “Even if you had taxes withheld, you’re probably still going to owe money because there was no way to withhold taxes out of that federal freebie, the extra $600 they were giving earlier in the year, and then the $300 they’re giving now,” Johnson said.

SCV BUSINESS VOICES

RAISING HEART-HEALTHY KIDS PATRICK MOODY Henry Mayo Newhall Hospital

T

hink heart health is solely an adult topic? Think again. Research suggests that the risk factors for heart disease begin to develop during childhood years. Fortunately, you can help your kids reduce some of their risks by helping them develop healthy heart habits while they’re young. HEART DISEASE RISK FACTORS THAT CAN AFFECT KIDS Some conditions that increase heart disease risk can actually begin in childhood. Among them: Unhealthy cholesterol levels. American children and adolescents have higher blood cholesterol levels than young people their age in most other developed countries. And the rate of heart disease tends to keep pace with cholesterol levels, according to the American Academy of Pediatrics (AAP). One study found early signs of hardening of the arteries in 7% of children between the ages of 10 and 15 years. The rate was twice as high among those between the ages of 15 and 20. High blood pressure. An estimated 3.5% of all children and teens in the U.S. have high blood pressure, according to the AAP. Because it often has no symptoms, the AAP recommends children have blood pressure checks every year, starting at age 3. Overweight and obesity. By age 7, more than half of high blood pressure is due to obesity, according to the AAP. This number rises to as high as 95% by the teenage years. Nearly 1 in 3 kids or teens in the U.S. is overweight or obese, according to the American Heart Association (AHA). WHAT PARENTS CAN DO There are a variety of steps parents can take to help kids establish good heart health at an early age. To start with, be a good role model. Not only will your kids likely follow your lead, your heart will benefit as well. Eat heart-smart foods. Like exercising, eating well can help kids maintain a healthy weight and control cholesterol and blood pressure levels. Very young children usually don’t need to watch their intake of fat. Fat is an essential nutrient that children need for growth and active play and should not be severely restricted, according to the AAP. Limit screen time. Smartphones, TVs and other screen-based devices are making kids more sedentary, according to the AHA. And being sedentary is tied to overweight and obesity. Patrick Moody is the director of marketing and public relations at Henry Mayo Newhall Hospital. For more information about local community health programs, visit HenryMayo.com.  

See TAX PREP, page B6


Turn static files into dynamic content formats.

Create a flipbook
Issuu converts static files into: digital portfolios, online yearbooks, online catalogs, digital photo albums and more. Sign up and create your flipbook.