Reminder on Your FUTA Tax Return!
Several farm states including Illinois and Minnesota will not be able to claim the full 5.4% credit when filing their form 940 Federal Unemployment tax return this year. This is due to these states not yet repaying the federal government the funds they borrowed to make state unemployment payments over the last few years.
IRS Headliner Volume 317 has the details on the states and the amount of reduction in the credit. The painful part is that you also will have to fill out Schedule A as part of the return instead of taking the simple 5.4% credit on the front page of form 940.
Paul Neiffer is a certified public accountant and business advisor specializing in income taxation, accounting services, and succession planning for farmers and agribusiness processors. Paul is a principal with CliftonLarsonAllen in Walla Walla, Washington, as well as a regular speaker at national conferences and contributor at agweb.com. Raised on a farm in central Washington, he has been immersed in the ag industry his entire life, including the last 30 years professionally. Paul and his wife purchase an 180 acre ranch in 2016 and enjoy keeping it full of animals.
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