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We miss seeing our clients and we are now accepting scheduling office visits, by appointment only. Please be prepared to take COVID-19 precautions when visiting our office, as we want to ensure the safety of everyone. If you should have questions please call 904-460-0747 or Contact Us via Email.

Abare, Kresge and Associates CPAs


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Abare, Kresge and Associates CPAs are committed to utilizing innovation and creativity to provide the very best financial, tax and business insights and solutions, while maintaining the highest level of integrity. Our mission is to deliver first-rate solutions to every client in every situation, while providing value-added services that exceed the expectations of clients.

Abare, Kresge and Associates CPAs


   News

We took the Pledge

Pledge St. Johns County is a commitment a business owner or manager makes to adhere to CDC guidelines and ensure St. Johns County residents, visitors, and employees are safe and comfortable while in their establishment. These guidelines include cleaning and disinfecting protocols, group size limitations, social distancing recommendations, and enhanced employee protocols and training. In addition, the establishment pledges to encourage the use of face coverings by staff and customers.

As many of you have been reading, the IRS and federal government have released initial information regarding available sick and childcare credits. These credits may have an impact on your business or personal financial standing. We have been carefully monitoring the latest releases from the IRS in an effort to best advise our clients. As it stands, we can share the following key takeaways from the most recent IRS releases that we believe will be beneficial in navigating through this troubling time of the COVID-19 pandemic. We will continue to update you as more information becomes available.

Paid Sick Leave Credit

Eligibility: Employee who is under Coronavirus quarantine or self-quarantine or has Coronavirus symptoms
Terms: Employers may receive refundable credit against their payroll tax, social security and Medicare liability owed to the IRS
Amount: Employee's regular rate of pay, up to $511 per day for up to 10 days
Note: If amount of credit exceeds payroll tax liability, the employer would file a request for an accelerated credit for the remaining balance.
Note: Equivalent credit amounts are available to self-employed individuals under similar circumstances. These credits will be claimed on their income tax return and will reduce estimated tax payments.

Child Care Leave Credit

Eligibility: Employees who is caring for family members in quarantine or caring for child whose school/childcare facility is closed due to COVID-19
Terms: Employers may receive refundable credit against their payroll tax, social security and Medicare liability owed to the IRS
Amount: Two-thirds of the employee's regular pay, capped at $200 per day for up to 10 weeks
Exemption: Small businesses with less than 50 employees will be eligible for an exemption for Child Care Credit
Note: Equivalent credit amounts are available to self-employed individuals under similar circumstances. These credits will be claimed on their income tax return and will reduce estimated tax payments.

No Audits for loans under $2 million!

The Treasury announced May 13th, that recipients of the loans under $2 million will not be subject to audit and it will be automatically determined that the borrower has acted in good faith in certifying the necessity of the loan. Prior to this announcement, there was much uncertainty among small businesses on whether they could certify that they actually needed this loan. This should alleviate the fear of 99% of all applicants.

90-Day Relief for Tax Payments Due

The Treasury Secretary, Steven Mnuchin, announced that tax payments up to $1 million for individuals can be deferred for 90 days.

The $1 million threshold was chosen for those who report pass-through business income on their individual return. Corporations are able to defer up to $10 million in tax payments. Penalties and interest will be waived during this 90 day period.

IRS: High-deductible health plans can cover coronavirus costs

IR-2020-54, March 11, 2020

WASHINGTON — The Internal Revenue Service today advised that high-deductible health plans (HDHPs) can pay for 2019 Novel Coronavirus (COVID-19)-related testing and treatment, without jeopardizing their status. This also means that an individual with an HDHP that covers these costs may continue to contribute to a health savings account (HSA). In Notice 2020-15 (PDF), posted today on IRS.gov, the IRS said that health plans that otherwise qualify as HDHPs will not lose that status merely because they cover the cost of testing for or treatment of COVID-19 before plan deductibles have been met. The IRS also noted that, as in the past, any vaccination costs continue to count as preventive care and can be paid for by an HDHP. Today's notice applies only to HSA-eligible HDHPs. Employees and other taxpayers in any other type of health plan with specific questions about their own plan and what it covers should contact their plan.

RMD’s Are Suspended for 2020

Required Minimum Distributions (“RMD’s”) are suspended for 2020. What this means is that if you have not yet taken your RMD for 2020, you will not be required to do so. You can keep that money in your IRA or workplace retirement account without any penalty. If you have already taken your RMD for 2020 and you did so on or after February 1st you have the option to return all or a portion of that distribution to your account without penalty. Your window to return your RMD ends of July 15, 2020. Give us a call if you have questions or would like to discuss your options. We can help.

NEW Updates to Healthcare Requirements

For the 2019 Tax Year you are no longer penalized for not having health insurance. In January 2019, The Tax Cuts and Jobs Act officially repealed the Affordable Care Act tax penalty. This means you will no longer be penalized when you file your taxes for not having health insurance.

HSA

Amounts have increased to $3,500 for Individuals / $7000 for Families. Maximum catch-up contributions for people over age 55 remain at $1,000.

Divorce

Did you go through a divorce this year or are you currently going through a divorce? The tax rules have changed. Give us a call to discuss the changes to treatment of Alimony! 904-460-0747

2019 Medical — Threshold has increased from 7.5% to 10%

The IRS allows all taxpayers to deduct the total qualified unreimbursed medical care expenses for the year that exceeds 10% of their adjusted gross income. This includes medical and dental unreimbursed expenses.