IRS Issues Guidance on State Tax Payments

23 Mar 21 Taxes

The IRS has identified 21 states that made special payments to taxpayers in 2022. After a review of those special payments, the IRS has determined that taxpayers in many states will not need to report those payments on their 2022 federal income tax returns. Special payments in four of those states should be treated as refunds of state taxes paid, and taxation is determined under the general federal income tax rules for state tax refunds. Special payments in 17 states are treated as made for the promotion of the general welfare or as a disaster relief payment and are excluded from income for federal tax purposes. Illinois and New York are listed in this category but seem to have provided a mixture of payments that fell into multiple categories (see below).

If you have already filed your 2022 federal income tax return and omitted one of these special payments when it was required to be included in income, you may need to file an amended tax return and pay any additional tax due. If you included one of these special payments in income when it did not need to be included, you may need to file an amended tax return in order to get a federal income tax refund with respect to the special state tax payment.

Refund of state taxes paid
The IRS has concluded that the special payments from the following states in 2022 are treated as a refund of state taxes paid, and the appropriate analysis under the general state tax refund rules should be made.
Georgia,Massachusetts,South Carolina,Virginia

Under general rules, if the payment is a refund of state taxes paid, the payment is excluded from federal income tax unless the recipient received a tax benefit in the year the taxes were deducted on the federal income tax return. Thus, the recipient does not need to include the payment in income if the recipient claimed the standard deduction or the taxpayer itemized deductions but did not receive a tax benefit (for example, because the $10,000 tax deduction limit applied) in the year the state taxes were deducted.

General welfare and disaster relief payments
The IRS has determined that the special payments from the following states in 2022 were made for the promotion of the general welfare or as a disaster relief payment and are excluded from income for federal tax purposes.
State State Payment Program
Alaska* Energy Relief Payment (supplementing the Permanent Fund Dividend)
California Middle Class Tax Refund
Colorado Colorado Cash Back
Connecticut Child Tax Rebate
Delaware Relief Rebate Program
Florida Pandemic Temporary Assistance to Needy Families
Hawaii Act 115 Refund
Idaho 2022 Tax Rebate
Illinois** Individual Income Tax Rebate/Property Tax Rebate
Indiana Automatic Taxpayer Refund #1/Automatic Taxpayer Refund #2
Maine Pandemic Relief Payments
New Jersey ITIN Holders Director Assistance Program
New Mexico Multiple rebate and relief programs
New York** Supplemental Child Credit and Supplemental Earned Income Tax Credit
Oregon One-Time Assistance Payments
Pennsylvania One-Time Bonus Rebates
Rhode Island 2022 Child Tax Rebates
*Exclusion is only for the supplemental Energy Relief Payment received in addition to the annual Permanent Fund Dividend.
**The IRS stated that "Illinois and New York issued multiple payments and in each case one of the payments was a refund of taxes, which should be treated as noted above, and one of the payments is in the category of disaster relief payment." It seems that additional guidance from the IRS is needed here to identify the tax treatment of specific payments.
Other payments
The IRS adds that other payments that may have been made by states (e.g., payments from states provided as compensation to workers) are generally includable in income for federal income tax purposes.

Investment Planning Group

Olive Garden Hosts March Jensen Beach Chamber of Commerce Luncheon

Screenshot 2023-03-17 190005.jpg a

In Photo: Bill West with West Advisory

Jensen Beach - On Thursday, March 16, 2023 the Jensen Beach Chamber of Commerce had their March luncheon at the local Olive Garden in Jensen Beach. Approximately 45 members of the chamber attended the luncheon. If you're looking for Italian food and a family atmosphere the Olive Garden located in Jensen Beach,at 447 NW Federal . They are conveniently located opposite Treasure Coast Mall.

The sponsor for the luncheon was Bill West with West Advisory. Mr. West is committed to providing the highest standards of commercial real estate property valuation and advisory services. He helps select business owners in the confidential sale of their business. He has developed a "Proven 5 Steps 2 Confidentially Sell Your Business" process. This proven process helps business owners make a successful confidential exit. For more information contact him at 772-812-5530. West Advisory is located at: 1 SE Ocean Blvd
Stuart.

The Jensen Beach Chamber of Commerce stands as the advocate for the development of the business community, tourism and resource center that promotes member success." The Chamber is in downtown historic Jensen Beach. Through seminars, workshops, and monthly luncheons the Chamber provides members with many opportunities to network and enhance businesses. For more Information contact them at: (772) 334-3444.

Out2News.com LLC. is an your online newspaper, “Who they are, what they do and where they do it”?

Do you have something to say, an event to talk about? An event you would like to have covered. Do it here!

Email your story or request to: rshall@out2news.com

Out2News adheres to full compliance with C.O.P.P.A. (Children’s Online Privacy Protection Act of 1998)

“YOUR" Treasure Coast Newspaper & Photo Journal

Copyright © 2023 Out2News.com LLC. All Rights Reserved.

DSC_1086.JPG b
DSC_1088.JPG b
DSC_1089.JPG b
DSC_1090.JPG b
DSC_1091.JPG b

Miles Grant Country Club Host Hobe Sound Chamber of Commerce Monthly Breakfast

DSC_1082 b

In Photo: Gisela Landwersiek, Steven Landwersiek, Peggy Kelleher - Investment Planning Group and Stephen Dillemuth - Gillman, Shapiro & Dillemuth. P.A.

Article & Photos by: Robin Hall - Out2News.com
Hobe Sound – On Wednesday, March 9, 2023 The Hobe Sound Chamber of Commerce had their March Breakfast at Miles Grant Golf & Country Club. The event was well attended with approximately 90 attendees. A delicious breakfast was served by the staff of the country club. Miles Grant is located at: 5101 SE Miles Grant Road in Stuart. For more information contact them at: 772.286.2220.

The Sponsors for the breakfast was Steven Landwersiek with Investment Planning Group and Stephen Dillemuth with Gillman, Shapiro & Dillemuth, P.A. The mission of the Investment Planning Group is to help you pursue finanial independence, a successful retirement and a lasting legacy. They are located in Stuart at 740 SE Indian Street. Call them 561.933.2117 for more information.
At Gillman, Shapiro & Dillemuth, P.A. if you are looking for a blend of personal service and expertise, you have come to the right place! They offer a broad range of services for business owners, executives and independent professionals. Their rates are affordable. They are experienced and friendly. For more information contact them at: 772.220.6655. They are located at 740 SE. Indian Street in Stuart.

GAI Community Solutions group and Martin County CRA staff unveiled the Dixie Highway Stormwater and Streetscape project that will encompass drainage and streetscape improvements on Dixie Highway from Bridge Rood south to Saturn Street, including Old Post Office Alley and the connecting streets. GAI Community Solutions, is a cross-functional team of professionals that helps create sustainable, livable places. They plan and design public spaces, sculpt landscapes and parks, reimagine streets and roads, and provide the regulatory and economic insight necessary to bring projects come to life. Staff from the Martin County CRA showed the new landscape designs on Dixie Highway through Bridge Road. Contact them at: 412.476.2000.

The Hobe Sound Chamber of Commerce plays a significant role in the Martin County and northern Palm Beach County business community. The Chamber is a business organization financed entirely by membership investments. It provides opportunities for members to stay connected, network, advertise, receive continuing education, business support and always gives back to their community. They are located at: 8958 SE Bridge Rd, Hobe Sound. Contact them at: 772-546-4724

Out2News is your Treasure Coast online newspaper where you are the reporter, photographer and YOU report the news! Do you have something to say, an event to a talk about? An event you would like us to have covered.
Photo by: Courtesy of Robin Hall - Out2News.com
Out2News.com adheres to full compliance with C.O.P.P.A. (Children's Online Privacy Protection Act of 1998)
"Your Treasure Coast Newspaper & Photo Journal"
Copyright © 2022 Out2News.com LLC. All Rights Reserved.

DSC_1085 b

In Photo: Representatives from GAI Community Solutions group and Martin County CRA staff

DSC_1022 b

In Photo: Rozanne Brown - Care Bag  and Evie Klaassen - Colorado Pawn & Jewelry

DSC_1031 b

In Photo: Irene Villa - Recover Insurance Adjusters and Laura Barbone - Aycock Funeral Homes

DSC_1048 b
DSC_1037 b
DSC_1024 b
DSC_1042 b
DSC_1025 b

Indian River State College Hosts Palm City Chamber of Commerce International Women's Day

DSC_0979 b

Article & Photos by: Robin Hall - Out2News.com
Stuart - On Wednesday, March 8, 2023 the Palm City Chamber of Commerce held their second International Women's Day at Indian River State College in Stuart. The Wolf Center - Chastain Campus, located at 2400 SE Salerno Road. Over 100 women attended representing their businesses.

The main sponsor for the Luncheon was sponsored by Rebecca Beckett, CFP with HJ Simms. Lunch was sponsored by Manero's Restaurant, located in Palm City at 2851 SW High Meadow Ave. Call them for reservations at:(772) 220-3011. The dessert table sponsored by Ooo La La in Stuart.

Anna Tillery with White Glove Moving and Storage, Emceed the event and led a nice panel discussing social, economic, cultural and political issues that are always impacting many women and their businesses. The panel consisted of Lucie McGuire Get Real Social LLC / The Traveling Youth, Katherine Culhane - Associate Director - FSBDC at Indian River State College, Nancy Turrell - Executive Director | MartinArts and Stacey Hetherington - Martin County Commissioner District 2.

The mission of the Palm City Chamber of Commerce is to serve as the principal advocate of the community and its businesses, acting as the catalyst in promoting the economic development of the Palm City area, stimulating jobs and improving the quality of life. The Chamber is located at: 2701 SW Cornell Avenue in Palm City. For more information call them at:772-286-8121.

Out2News.com LLC. is your Treasure Coast online newspaper, “Who they are, what they do and where they do it”?

Do you have something to say, an event to talk about? An event you would like to have covered. Do it here!

Email your story or request to: rshall@out2news.com

Out2News adheres to full compliance with C.O.P.P.A. (Children’s Online Privacy Protection Act of 1998)

DSC_0984 b
DSC_0996 b
DSC_0981 b
DSC_0987 b
DSC_0986 b
DSC_0988 b
23 Mar Inter Multi

Capps Roofing & Repair Hosts Hobe Sound Chamber of Commerce Business After Hours

DSC_0960 b

Article & Photos by: Robin Hall - Out2News.com
Hobe Sound - On Wednesday, February 22, 2023 the Hobe Sound Chamber of Commerce had their February Business After Hours.

Celebrating 30 years of being in business!
Capps Roofing is a family owned and has been in business since 1993. They have been focused on slow, steady growth with direct oversight on each job to ensure quality workmanship and timely delivery of all services.

With over 8,000 satisfied customers in their local area, they have become one of the area's top-producing re-roofing and repair companies. Looking for a trusted, proven roofing company? Capps Roofing, Inc. can handle all roofing needs.

They offer roofing services of the finest quality in Martin, Palm Beach, and St. Lucie Counties.

They install all types of roofs - shingles, shakes, metal, tile and flat roofs. They are located in Hobe Sound at 10810 SE Dixie Highway. Call them at 772.545.3442.

The Hobe Sound Chamber of Commerce plays a significant role in the Martin County and northern Palm Beach County business community. The Chamber is a business organization financed entirely by membership investments. It provides opportunities for members to stay connected, network, advertise, receive continuing education, business support and always gives back to their community. They are located at: 8958 SE Bridge Rd, Hobe Sound. Contact them at: 772-546-4724

Out2News is your Treasure Coast online newspaper where you are the reporter, photographer and YOU report the news! Do you have something to say, an event to a talk about? An event you would like us to have covered.
Photo by: Courtesy of Robin Hall - Out2News.com
Out2News.com adheres to full compliance with C.O.P.P.A. (Children's Online Privacy Protection Act of 1998)
"Your Treasure Coast Newspaper & Photo Journal"
Copyright © 2023 Out2News.com LLC. All Rights Reserved.

DSC_0945 b
DSC_0949 b
DSC_0942 b
DSC_0951 b
DSC_0973 b
DSC_0948 b

What Is An “Earnout” in a Business Sale?

23 Feb Upgrades a

When it comes to buying or selling a business, there are a variety of different ways to structure the transaction. One potential option is to use an “earnout” which is a side agreement (separate from the purchase agreement) that allows the seller to receive additional compensation in the future based on the post-closing performance of the business.

An earnout typically works by setting a target for the business’s future performance, such as a certain level of sales revenue or profit. If the business meets or exceeds this target, the seller then receive additional compensation on top of the initial purchase price. However, if the business falls short of the target, the seller may not receive this additional compensation.

There are a few potential benefits to using an earnout in a business purchase. First and foremost, it can help to bridge any gaps in valuation between the buyer and seller. If the buyer is hesitant to pay the full asking price for the business, an earnout can provide a way to make up the difference by tying additional compensation to the business’s future success.

Additionally, an earnout can provide an added incentive for the seller to work with the buyer to ensure the business’s continued success. If the seller has a stake in the business’s future performance, they may be more likely to stay involved and help the buyer navigate any challenges that arise.

That said, there are also potential downsides to using an earnout. For one, it can be difficult to accurately predict future business performance, which means there is some risk that the seller may not receive any additional compensation despite their efforts to ensure the business’s success. Additionally, strictly defining the earnout amount (and its later calculation) can add additional complexity to the negotiation and drafting of the transaction, which may make it more difficult to negotiate and finalize the deal.

Despite these potential downsides, however, earnouts are still useful tools in certain business purchase transactions. They can help to align the interests of the buyer and seller, provide a way to bridge valuation gaps, and incentivize ongoing collaboration and support. As with any business transaction, it is important to work with your legal and accounting professionals to carefully consider the potential risks and benefits before deciding whether or not to include an earnout in your purchase agreement.

As always, if you have any questions about buying or selling a business, or business law generally, please don’t hesitate to contact us!

19 Nov Woodward Logo

GFNF4Kids Children’s Advocacy Center Announces the Addition of Melissa Winstead

23 Feb 6 Guardians

Guardians for New Futures is pleased to announce the addition of Melissa Winstead, CFRE, to their team of dedicated professionals. In her new position as Chief Innovation Officer, Winstead will oversee all aspects of fund development, including major giving, planned giving, grant writing, fundraising events, and community engagement.

A proud United States Navy Veteran, Winstead and her family moved to Port St. Lucie in 2001. In March 2021, she earned the distinguished Certified Fundraising Executive (CFRE), a designation held by less than 7000 fundraising professionals in the United States.

Winstead attributes her success in fundraising to the many volunteers and colleagues she feels privileged to have worked with at organizations like St. Lucie Habitat for Humanity, Volunteers in Medicine Clinic, March of Dimes, Orange County Regional History Center, SafeHouse of Seminole, Heart of Florida United Way, and Kids House Children’s Advocacy Center in Sanford, Florida.

Looking forward, Winstead plans to use her skills in outreach, volunteer management, community organizing, and strategic planning to further foster a culture of philanthropy at GFNF4Kids Children’s Advocacy Center.

Her previous role at Kids House Children’s Advocacy Center gives Winstead a unique insight on the best practices for promoting the GFNF4Kids mission and fulfilling the fundraising goals of the Children’s Advocacy Center all while serving the needs of abused children in St. Lucie, Martin, Okeechobee, and Indian River (the 19th Circuit).

When asked about her passion for the work of the Children’s Advocacy Center, Winstead said, “The CAC model operates by bringing services to the child instead of the child going from place to place to tell their stories over and over. In my mind, there is nothing more noble than championing children and my goal is to bring our Treasure Coast community together – because together, we can put an end to child abuse. For me, serving GFNF4Kids Children’s Advocacy Center is like coming home.”