Tax credits in the form of checks or direct deposit by April 20, 2020 in the amount of:

• $1,200 per adult and $500 per child to individuals earning less than $75,000 annually
• $1,200 per adult and $500 per child to joint filers earning less than $150,000 annually
• Lesser amounts will be provided to those individual filers earning more than $75,000 and less than $99,000, and those joint filers earning more than $150,000 and less than $198,000

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. 

Click here to be directed to IRS Q&A page regarding Filing and Payment Deadline. 

Check with your State to see if they follow Federal extensions. Click here for the list of State Agencies. 

Expanded unemployment benefits:

• Eligibility expanded to include self-employed, independent contractors / gig economy workers, nonprofit employees and others
• Amount increased by $600 weekly
• Duration extended an additional 13 weeks beyond the existing 26-week maximum.

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:

• Cannot work as a result of being diagnosed with COVID-19, are experiencing symptoms, or are seeking a diagnosis.
• Cannot work because you are caring for an immediate family member or member of your household who has been diagnosed with COVID-19.
• Cannot work because your child’s school or daycare has closed, and you don’t have alternative care.
• Cannot work because a care facility has closed, and you do not have alternative care for an elderly or disabled family member.
• Cannot work due to being placed on quarantine, or your company has shut down due to quarantine.
• Were about to start a new job but have not started due to the coronavirus outbreak.
• Were laid off from a new job and did not have sufficient work history to qualify for benefits under normal circumstances.

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:

• Able to work from home.
• Receiving paid sick leave or paid family leave.
• A new entrant to the workforce and cannot find a job.

Click here for more information on the Expanded Unemployment benefits and the Families First Coronavirus Response Act from the US Department of Labor

To apply for these and other unemployment benefits, contact your state unemployment office directly.  

Click here to find your State Unemployment Office information. 

Click here for the Official House Committee on Ways and Means Act covering Unemployment Compensation. 

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:

• Pending OIC applications – The IRS will allow taxpayers until July 15 to provide requested additional information to support a pending OIC. In addition, the IRS will not close any pending OIC request before July 15, 2020, without the taxpayer's consent.
• OIC Payments – Taxpayers have the option of suspending all payments on accepted OICs until July 15, 2020, although by law interest will continue to accrue on any unpaid balances.
• Delinquent Return Filings - The IRS will not default an OIC for those taxpayers who are delinquent in filing their tax return for tax year 2018. However, taxpayers should file any delinquent 2018 return (and their 2019 return) on or before July 15, 2020.
• New OIC Applications – The IRS reminds people facing a liability exceeding their net worth that the OIC process is designed to resolve outstanding tax liabilities by providing a "Fresh Start." 

Click here for more information on IRS Tax Collection Programs. 

 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:

•  An employee who is unable to work (including telework) because of coronavirus quarantine or self-quarantine or has coronavirus symptoms and is seeking a medical diagnosis 
•  An employee who is unable to work due to caring for someone with coronavirus, or caring for a child because the child’s school or place of care is closed, or the paid child care provider is unavailable due to the coronavirus 
•  An employee who is unable to work because of a need to care for a child whose school or place of care is closed or whose child care provider is unavailable due to the coronavirus 

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.  

Click here for more information on the Paid Leave for 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:

1. the full or partial suspension of the operation of their trade or business during any calendar quarter because of governmental orders limiting commerce, travel, or group meetings due to COVID-19, or
2. a significant decline in gross receipts.

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. 

Click here to be directed to IRS website for more information related to these payroll tax credit. 

Expanded SBA benefits to enable more companies to qualify for larger loan amounts at more favorable terms:

• Paycheck Protection Program enabling loans of up $10 million for small businesses affected by economic conditions as a result of COVID-19.
• SBA Express program maximum temporarily increased to $1 million (from $350,000) through December 31, 2020.

Click here to go directly to the SBA website to learn more about this Loan assistance available to businesses and homeowners. 

 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,

1. Click here to be directed to the Small Business Association website. 
2. Click here to be directed to the US Department of Treasury to get more information on the PPP Loan forgiveness requirement. 

 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. 

Click here to be directed to the American Bank Association page to see the various assistance different banks are offering. 

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:

• MOHELA: 1-888-866-4352
• Navient: 1-800-722-1300
• Nelnet: 1-888-486-4722

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:  

• Make sure employees have the tools and equipment they need to work effectively: For many, equipment needed includes a computer monitor, keyboard, and mouse and reliable internet access.
• Encourage employees to designate a work-space in their home: Separating work from life helps employees focus and stay organized throughout the day.
• Clearly communicate employee and team expectations. Employees should know what they are expected to be working on, who to communicate with and which meetings they’re expected to attend virtually.
• Take precautions to keep your business data and your employees safe: Avoid using public networks. Work in a private space like a home office rather than a coffee shop or co-working space.
• Be compassionate, flexible and patient with employees: Transition can be hard on everyone, especially with employees who are expected to work full-time and in addition are now full-time teachers with multiple children at home. 
• Communication is key to have everyone be inclusive and on task. 

 Check with your local resources  in your state and locality. 

• You can start with your state and other business chambers and  business associations, see what other local resources are available to help small businesses
• Check in with your neighbors preferably via phone and social media to ensure that everyone is safe and have the food and their basic needs met. 
• Support your local restaurants and order take out. 
• Limit your news intake to a few headlines per day if it gives you anxiety.
• Reach out for prayer and other spiritual support. 

WE WILL MAKE IT THROUGH THIS TOGETHER.