Signed in as:
Signed in as:
Tax credits in the form of checks or direct deposit by April 20, 2020 in the amount of:
The payment amount is based on your adjusted gross income, which you can find on line 8b of your 2019 1040 federal tax return. If you haven’t prepared your 2019 tax return yet, you can use your 2018 tax return or a 2019 Social Security statement. If you haven’t filed taxes in 2018 or 2019, it could affect your stimulus payment.
If you were not required to file because you are below the filing threshold, you can still get your stimulus payment by direct deposit. Click here to sign up on the IRS website.
If you have received check payments in the past and need to submit your direct deposit information to the IRS, click here to update your bank information with the IRS.
Everyone with a Social Security number and qualifying income level will receive payment. Recipients include veterans and unemployed workers and those on Social Security retirement or disability pay. For now, expect just one payment. Future legislation could provide additional payments, depending on the status of the economy.
For more information, click here to be directed to the IRS Economic Impact Payment Information Center
The Treasury Department and Internal Revenue Service announced that the federal income tax filing due date is automatically extended from April 15, 2020, to July 15, 2020.
Taxpayers can also defer federal income tax payments due on April 15, 2020, to July 15, 2020, without penalties and interest, regardless of the amount owed. This tax return and payment deferment applies to all taxpayers, including individuals, trusts and estates, corporations and other non-corporate tax filers as well as those who pay self-employment tax.
This extension also applies to :
- 2020 quarterly estimated tax payments due April, 15, 2020, which are now due July 15, 2020.
- Individual Retirements Accounts (IRAs) and workplace-based retirement plans.
- Contributions to Health Savings Accounts (HSAs) and Archer Medical Savings Accounts (MSAs)
The IRS urges taxpayers who are due a refund to file as soon as possible. Most tax refunds are still being issued within 21 days.
The return or payment must be due on April 15, 2020 – this relief does not apply to Federal income tax returns and payments due on any other date.
Check with your State to see if they follow Federal extensions. Click here for the list of State Agencies.
Expanded unemployment benefits:
If you have lost your job or are unable to work due to the coronavirus, you’re likely eligible for unemployment benefits. You are eligible for unemployment benefits if you:
You may not be covered if you left your job voluntarily over fears of contracting the coronavirus. You may not be eligible for unemployment benefits if you are:
To apply for these and other unemployment benefits, contact your state unemployment office directly.
EXISTING INSTALLMENT PAYMENTS
For taxpayers under an existing Installment Agreement, payments due between April 1 and July 15, 2020 are suspended. Taxpayers who are currently unable to comply with the terms of an Installment Payment Agreement, including a Direct Debit Installment Agreement, may suspend payments during this period if they prefer. Furthermore, the IRS will not default any Installment Agreements during this period. By law, interest will continue to accrue on any unpaid balances.
OFFERS IN COMPROMISE
The IRS is taking several steps to assist taxpayers in various stages of the OIC process:
The federal government is waving penalties and making other accommodations for those who need to access retirement savings early. The distribution will however be subjected to income tax.
U.S. Treasury Department, Internal Revenue Service (IRS), and the U.S. Department of Labor (Labor) announced that small and midsize employers can begin taking advantage of two new refundable payroll tax credits, designed to immediately and fully reimburse them, dollar-for-dollar, for the cost of providing Coronavirus-related leave to their employees.
The relief gives all American businesses with fewer than 500 employees funds to provide employees with paid leave, either for the employee's own health needs or to care for family members. The legislation will enable employers to keep their workers on their payrolls, while at the same time ensuring that workers are not forced to choose between their paychecks and the public health measures needed to combat the virus.
Eligible employee includes:
Eligible employers are entitled to receive a credit in the full amount of the required sick leave and family leave, plus related health plan expenses and the employer’s share of Medicare tax on the leave, for the period of April 1, 2020, through December 31, 2020. The refundable credit is applied against certain employment taxes on wages paid to all employees.
The Employee Retention Credit is a refundable tax credit against certain employment taxes equal to 50 percent of the qualified wages an eligible employer pays to employees after March 12, 2020, and before January 1, 2021. Eligible employers can get immediate access to the credit by reducing employment tax deposits they are otherwise required to make. Also, if the employer's employment tax deposits are not sufficient to cover the credit, the employer may get an advance payment from the IRS.
Employers, including tax-exempt organizations, are eligible for the credit if they operate a trade or business during calendar year 2020 and experience either:
An employer's eligibility is impacted if they receive other COVID-19 related credits and relief.
For more information on this credit, click here to be directed to the related IRS website.
Expanded SBA benefits to enable more companies to qualify for larger loan amounts at more favorable terms:
The Paycheck Protection Program is a loan designed to provide a direct incentive for small businesses to keep their workers on the payroll.
SBA will forgive loans if all employees are kept on the payroll for eight weeks and the money is used for payroll, rent, mortgage interest, or utilities.
The loan will be fully forgiven if the funds are used for payroll costs, interest on mortgages, rent, and utilities (due to likely high subscription, at least 60% of the forgiven amount must have been used for payroll). Loan payments will also be deferred for six months. No collateral or personal guarantees are required. Neither the government nor lenders will charge small businesses any fees
For more information on this loan,
Mortgage lenders and services will be allowed to provide up to 180 days of forbearance (payment deferral) on federally-backed loans for customers experiencing hardship related to the COVID-19 emergency.
If you are experiencing hardship associated with the COVID-19 and need help with your mortgage payments, con tact your bank. Many banks are implementing individualized solutions to borrowers affected.
STUDENT LOAN ASSISTANCE
All payments for federal student loans (Direct and FFELP) are deferred through September 30, 2020. Contact your student loan servicer to discuss eligibility and options.
Contact information for the top three servicers are listed below:
Now more than ever it is important to manage your company's cash flow and develop short and long term risk assessment and action plan. If you have not looked at your financial statements in a while, now is the time to do so and work with your accountant to do some forecasting and scenario based budgeting.
In these times of social distancing, a lot of employees are now working remotely.
Here are a few tips to help with the transition:
Check with your local resources in your state and locality.
WE WILL MAKE IT THROUGH THIS TOGETHER.
This content is for information purposes only and information provided should not be considered legal, accounting or tax advice or a substitute for obtaining such advice specific to your business. Additional information and exceptions may apply. Applicable laws may vary by state or locality. No assurance is given that the information is comprehensive in its coverage or that it is suitable in dealing with a individuals’s particular situation.