There have been many tax updates over the past week for individuals, as well as business owners. I’m covering much of that on this page, with links to relevant resources.
Reach out to me if you have questions about this information.
View the COVID-19 Guide that provides a snapshot of scenarios and benefits available to employees, individuals, and business owners.
Also, view the robust (52 pages) ADP COVID-19 FAQ Workplace Policies and Legislative Changes document.
April 10, 2020: Federal Tax Day – Current, I.1, IRS and Treasury Extend Due Date for Additional Filings and Payment Obligations (Notice 2020-23; IR-2020-66),
This stimulus package benefits almost every person in the country. However, please stay informed since much of the $$ being handed out may affect your 2020 taxes.
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; for example, 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.
Use the Stimulus Check Calculator to estimate your check amount.
For those out of work, the CARES Act 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. Visit the New Jersey Department of Labor website for more employee-related information.
There are 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 website for more information.
Small Business Benefit
The CARES Act 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 complete. It does require that you gather all of your business and personal financial information prior to completing the application. Apply for assistance on the Small Business Administration’s website.
Income and Payroll Taxes
That allows for a 90-day 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 the 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.
People First Initiative – Stimulus Checks
The IRS released a sweeping series of steps, called the People First initiative, to assist taxpayers by providing relief on a variety of issues ranging from easing payment guidelines to postponing compliance actions.
What most people want to know is, “How Much Will I Get?” This easy-to-use calculator provides you with an estimate of how much you should receive from the U.S. government.
The IRS also provided a series of frequently asked questions related to the stimulus checks.
Paycheck Protection Program (PPP)
This is an SBA loan that helps businesses keep their workforce employed during the Coronavirus (COVID-19) crisis.
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 Paycheck Protection Program will be available through June 30, 2020. Download a sample form to see what information will be required.
- SBA PPP Website
- The Impact on Your Business
- Federal Programs for business, including PPP and Economic Injury Disaster Loan
- Loan Calculators:
In response to the Coronavirus (COVID-19) pandemic, small business owners in all U.S. states, Washington D.C., and territories are currently eligible to apply for disaster assistance.
Enhanced Debt Relief is also available in SBA’s other business loan programs to help small businesses overcome the challenges created by this health crisis.
For information on additional Lending options, please visit the Small Business Administration website.
SBA provides local assistance via 68 district offices and a nationwide network of resource partners. To find resources near you, view their Local Assistance webpage.
In addition to the above information, here is a list of personal and business-related links you will find helpful. If you have any questions about these initiatives, please give me a call.
- Federal 2019 Tax Filing Deadline – July 15
- NJ State Tax 2019 Filing Deadline – July 15
- NJ Health COVID-19 Guide for Businesses
- NJ Emergency Assistance Eligibility Wizard
- CARES Act
- Economic Injury Disaster Loans and Loan Advance (Grants & Loans)
- Families First Coronavirus Response Act (FFCRA or Act): Questions and Answers
- Federal Student Aid Website
- FFCRA Employee Rights Poster
- Guidance for Business and Employers
- Paycheck Protection Program
- People First
- Small Business Administration COVID-19 Relief
- Small Business Administration Express Bridge Loans