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.)
- 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.
- 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.
- 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.
- 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.
- 2020 loans from 401K plans increased from $50,000 to $100,000.
- Required Minimum Distribution (RMD) from Individual Retirement Accounts (IRA) and
other pension plans are suspended.
- 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.
- For 2020 there is a new provision that provides an above-the-line deduction for charitable
contributions.
- Increase in Medicare reimbursement rate to assist providers caring for the elderly
population.
- 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.
- 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.
- 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.
- 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.
- Payroll Taxes. The ACT allows employers to delay the payment of their portion of 2020
payroll taxes until 2021 and 2022.
- 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.
- 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.
- 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.
- Excess Loss Limitations: The excess loss limitation (ELL) rules for pass-through
entities are suspended.
- 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.
- 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.
- C Corporation Tax Filing Deadline: The deadline for filing and paying 2019 corporate
income tax returns has been moved to July 15, 2020.
