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Corona Help

Stimulus Info and Updates:

(We will update this page as new information is available.  Please fill out the form below to be added to our mailing list.)

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  1. A onetime tax rebate check in the amount of $1,200 per individual, $2,400 per couple,

and $500 per eligible child. To qualify for this rebate annual income for a single

individual must be $75,000 or less and a $150,000 for a married couple.

  1. Single individuals with annual income of $99,000 or above are not eligible to receive the

rebate check and the same is applicable for couples with $198,000 income and above. A

prorated share of a rebate check will be sent if annual income is between the minimum

and maximum levels.

  1. Self-employed individuals and independent contractors are now eligible to apply and

receive unemployment benefits even though they have never paid any unemployment

premiums. The ACT provides $250 billion for an extended unemployment insurance

program and expands eligibility and offers unemployed workers an additional $600 per

week for four months. This benefit is on top of what the state unemployment programs

pay. It also extends unemployment benefits through Dec. 31 for eligible workers.

  1. Early withdrawal penalty for distributions up to $100,000 for coronavirus-related

purposes, retroactive to January 1, 20120 are still taxed, but taxes are spread over three

years, or the taxpayer has the three-year period to roll it back over.

  1. 2020 loans from 401K plans increased from $50,000 to $100,000.
  1. Required Minimum Distribution (RMD) from Individual Retirement Accounts (IRA) and

other pension plans are suspended.

  1. The 2019 individual income tax deadline for filing and paying the 2019 tax liability has

been moved to July 15, 2020. The new date also extends the 2019 contribution to a 2019

Individual Retirement Account (IRA) and the first 2020 estimated individual income tax

payment until the new filing due date.

  1. For 2020 there is a new provision that provides an above-the-line deduction for charitable

contributions.

  1. Increase in Medicare reimbursement rate to assist providers caring for the elderly

population.

  1. All Coronavirus testing and potential vaccines (when available) for COVID-19 will be

provided and covered by all insurance plans at no cost to individual patients.

  1. Temporary student loan relief: All loan and interest payments would be deferred

through Sept. 30 without penalty to the borrower for all Federally owned student loans.

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  1. Paycheck Protection Program. The CARES Act provide a new Small Business

Administration (SBA) program to help small businesses continue to meet their payroll

obligation and encourage employers not to lay off employees. The loans can be used to

pay up to 100% of 2.5 times the average monthly salary of the employees, rent,

mortgages, insurance premiums, utilities, and other debt obligations. If the loan amount

is properly used, the Federal government will forgive these loans up to eight (8) weeks of

the business cash flow paid for these items.

  1. Loan Forgiveness. If an employer uses the loan proceeds to pay for the expenses

indicated above, the amount forgiven will not be taxed to the employer. If on the other

hand, an employer reduces employee salary by a meaningful amount (more than 25%) or

layoff employees the amount of the loan forgiveness will be reduced accordingly.

  1. Payroll Taxes. The ACT allows employers to delay the payment of their portion of 2020

payroll taxes until 2021 and 2022.

  1. SBA Debt Relief. For six months, the Small Business Administration (SBA) is required

to pay all principal, interest and fees on all existing SBA loans products.

  1. Emergency grants: The bill provides $10 billion for grants of up to $10,000 to

provide emergency funds for small businesses to cover immediate operating costs.

The emergency grant will be part of the Paycheck Protection Program and will be

subject to the same forgiveness or repayment rules.

  1. Net Operating Losses: The Tax Cuts and Jobs Act (TCJA) net operating loss rules for C

Corporations are modified. The 80% rule is lifted and losses can now be carried back

five years.

  1. Excess Loss Limitations: The excess loss limitation (ELL) rules for pass-through

entities are suspended.

  1. Interest Expense Limitation: The interest expense limitations are increased to 50%

from 30% for tax years beginning in 2019 or 2020. Taxpayers can also elect to calculate

the interest limitation for 2020 using their 2019 adjusted taxable income as the relevant

base, which often will be significantly higher.

  1. Student Loans: Employers can provide up to $5,250 in tax-free student loan repayment

benefits. That means an employer could contribute to loan payments and workers

wouldn’t have to include that money as income.

  1. C Corporation Tax Filing Deadline: The deadline for filing and paying 2019 corporate

income tax returns has been moved to July 15, 2020.