Here is some information regarding the recently passed CARES Act.
Economic Impact Payments:The distribution of economic impact payments will begin in the next three weeks and will be distributed automatically, with no action required for most people. Social Security beneficiaries who are not typically required to file tax returns will not need to file to receive a payment. Instead, payments will be automatically deposited into their bank accounts.
Tax filers with adjusted gross income up to $75,000 for individuals and up to $150,000 for married couples filing joint returns will receive the full payment. For filers with income above those amounts, the payment amount is reduced by $5 for each $100 above the $75,000/$150,000 thresholds. Single filers with income exceeding $99,000 and $198,000 for joint filers with no children are not eligible. Social Security recipients and railroad retirees who are otherwise not required to file a tax return are also eligible and will not be required to file a return.
Eligible taxpayers who filed tax returns for either 2019 or 2018 will automatically receive an economic impact payment of up to $1,200 for individuals or $2,400 for married couples and up to $500 for each qualifying child.
Tax Deadline Changed: The deadlines to FILE and PAY federal income taxes are extended to July 15, 2020.
Does this relief provide me more time to contribute money to my IRA for 2019? Yes. Rule does extend 2019 IRA contributions for workers with earned income. Contributions can be made to your IRA, for a particular year, at any time during the year or by the due date for filing your return for that year. Because the due date for filing Federal income tax returns has been postponed to July 15, the deadline for making contributions to your IRA for 2019 is also extended to July 15, 2020. For more details on IRA contributions, see Publication 590-A, Contributions to Individual Retirement Arrangements (IRAs).
RMD Changes --Required Minimum Distributions (RMDs) may be waived in 2020 (including those who had not yet received their first distribution if they turned 70 ½ in 2019).
-- A plan or IRA beneficiary receiving distributions over a 5-year period will be able to waive the distribution for 2020.
On the small business side – the Paycheck Protection Program (PPP) was recently rolled out.
Overview:To incentivize employers to maintain payroll during the crisis, the SBA is providing 100 percent federally-backed loans for certain payroll expenses through June 30, with up to eight weeks of forgiveness for small businesses, certain nonprofits and self-employed individuals. The loans are forgivable if employers retain employees at comparable salary levels prior to the crisis. The PPP also waives all SBA fees and provides deferral on loan repayments for a minimum of six months up to a maximum of one year.
See link below for how this could help your small business: https://taxfoundation.org/sba-paycheck-protection-program-cares-act/
Here is the IRS website for all details around the CARES Act:https://www.irs.gov/coronavirus
Tax foundation can help you see how your state is responding:https://taxfoundation.org/
***Please be aware that this is a very fluid situation and new and updated rules are being passed routinely.***
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