What You Need to Know About Individual Taxpayer and Small Business Relief Under the CARES Act4/10/2020 Read directly from the source. The Coronavirus Aid, Relief and Economic Security (CARES) Act recently signed into law is the largest emergency aid package in US history and will provide $2 trillion to individuals and businesses during this uncertain time. According to the Tax Policy Center, about 90% of Americans will receive money under this act.
Stimulus payment amounts for individuals and families are as follows:
Phaseout levels Singles - Begins at $75,000, phases out completely at $99,000 Head of household - Begins at $112,500, phases out completely at $136,500 Couples (with no children) - Begins at $150,000, phases out completely at $198,000 Children - No limit to how many children under age 17 a parent can receive $500 for. For every $100 above income thresholds, the amount the taxpayer receives will decrease by $5. Quick tax facts to keep in mind
When will individual taxpayers see this money? US Treasury Secretary, Steven Mnuchin, said stimulus payments will start going out 3 weeks after the bill passed, but some speculate it could be months for certain taxpayers. Those who selected direct deposit for their tax return will likely receive their money sooner than those who opted to receive their refund by mail. However, the IRS will also be offering an online portal to those taxpayers who opted to receive their refund by mail to provide their banking information. The CARES Act specifically outlines the Paycheck Protection Program, a forgivable loan program that allows small businesses to get cash quickly and incentivizes them to not lay off employees. Paycheck Protection Program Who qualifies for a forgivable loan? Businesses with 500 or fewer employees How much are the loans for? Loan amounts for established businesses:
1% fixed rate When can businesses apply? April 3 for small businesses and sole proprietors April 10 for self-employed individuals and independent contractors How can businesses apply? Businesses can apply through the following:
The loan should be used to pay for the following expenses over an 8 week period after receiving the loan:
When do businesses have to start paying loan interest? Payments are deferred 6 months, but interest will accrue over that time. When are these loans due? In 2 years. Quick facts for business taxes
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April 2020
CategoriesAuthorSam S. Cozzi, Jr. is a family man, for whom inspired him to be the man he is today. To provide for his family he followed his interests which led him towards his career as a tax professional. |