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Synopsis of the CARES Act: Providing Financial Assistance to Individuals & Businesses
I hope everyone is doing well. Please be safe and continue to follow the CDC guidelines and your State's requirements for Social Distancing and/or Stay-in-Place orders. Coronavirus is nothing to toy with.
I want to take this opportunity to share what I have learned so far about the massive bill CARES signed into law, March 27, 2020.
This stimulus package benefits almost every person in the country. However, we must stay informed since much of the $$ being handed out may affect our 2020 taxes. I will try to cover as much as I can in this blog so that you know where to go with your questions, also to apply for unemployment benefits or for SBA loans.
Personal Benefit
All taxpayers, recipients of Social Security, SSI, or veterans benefits are eligible for the one time stimulus checks of $1,200/$2,400 for single/married persons, plus $500 per child. There will be a phase out of this amount though. If your tax return shows your Adjusted Gross Income is between $75,000 - $99,000 for Single/Head of Household filers or $150,000/$198,000 for Married filers.
Here is a link to a calculator to assist you in estimating how much you will receive.
In each State, workers have had their jobs shifted to work from home. However, the majority of workers have experienced their jobs go away due to the COVID-19 closing the doors of the companies they work for. Or they may be home due to governmental requirements or due to health issues. Whatever the reason, millions are without an income. The CARES stimulus package provides relief in the form of adjusted eligibility requirements for workers and an unemployment supplement of $600. This benefit includes self-employed, gig workers, and independent contractors. COVID-19 Unemployment Benefits Info
There is also things you can do personally to assist with minimizing your bills during this time. Some companies are allowing for deferred payments for car loans, home loans, and even your student loans. Check out the Federal Student Aid link I've attached. Student Loan Relief
Small Business Benefit
CARES also provides $350 billion in SBA loan guarantees for small firms. Companies that keep their staff won't have to pay the funds back. However, some small businesses have already been forced to lay off some of their workers. There is also an emergency grant of $10,000 to help give immediate relief to business owners. I have downloaded and reviewed the SBA application. It isn't extremely hard to fill out, but will require that you gather all of your business and personal financial information prior to completing the application. The SBA website has not been updated yet, to incorporate the new EIDL information and therefore if you apply today, you will have to remember to go back and apply again for the $10,000 Emergency funding. Please reach out to me and I will be happy to assist you in completing your application or discussing your options! SBA EIDL Assistance
USA Today provides a great summary on these benefits and more. If you have the time, please watch their FAQ video. A great discussion on the impact to us. Coronavirus Stimulus Package
As you know, we are all adversely affected by COVID-19. For many, it may be the risk to their health that is of primary concern. For others, it is the financial issues due to loss of jobs or shutting down their businesses. Please know that I am here for you. I want to make this challenging time less stressful. I want to make sure you have the information and tools to make wise decisions.
Income and Payroll Taxes
The IRS has been directed to extend the income tax filing and payment deadline to JULY 15, 2020. This allows for a 90 relief from filing if you cannot retrieve all of your tax data. It also alleviates the stress of trying to pay an income tax bill when little or no income is coming in. In addition, the IRS has new rules for its key compliance program - no collections, no liens, no levies. The new program called People First Initiative provides immediate relief by temporarily adjusting their processes. Thus if you have a tax issue, you now have extra time to resolve it without straining your finances. This initiative runs from April 1st through July 15th.
See more on the IRS website. - IRS Coronavirus Relief
At Litherland Tax & Accounting Services we are happy to help you, your loved ones and friends. If we all work together, we can make it through this!
Also, if anyone is in need of filing their 2018 or 2019 tax return please contact us. We offer Virtual Tax Preparation, Bookkeeping and Accounting Services as well as Virtual Consultation.
