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Stimulus Payments and Social Security

The IRS has announced that Social Security recipients will automatically receive economic impact payments. Those receiving Social Security benefits who do not typically file a tax return will not need to file an abbreviated (simple) tax return to receive the stimulus payment. The IRS will use information from the SSA-1099 and RRB-1099 to generate payments […]

Employee Retention Credit Available for Business

Employee Retention Credit Available for Business The Treasury Department and the Internal Revenue Service launched the Employee Retention Credit, designed to encourage businesses to keep employees on their payroll. The refundable credit is 50% of up to $10,000 in wages paid by an employer whose business has been financially impacted by COVID-19. The credit is […]

Economic Impact Payments

Blog #30 Economic Impact Payments No action needed by most people at this time The Treasury Department and the Internal Revenue Service announced that distribution of economic impact payments will begin in the next three weeks and will be distributed automatically, with no action required for most people. However, some seniors and others who typically […]

Paycheck Protection Program

Blog #29 Job retention and business operating expenses Eligible recipients may qualify for a loan up to $10 million determined by 8 weeks prior of average payroll plus an additional 25% of that amount. Loan payments are deferred for 6 months. If you maintain a workforce, SBA will forgive the portion of the loan proceeds […]

CARES Act

CARES Act Late Wednesday night, the Senate passed in a 96-0 vote the $2 trillion Coronavirus Aid Relief, and Economic Recovery Act (Cares Act). Individual Provisions Recovery Rebates for Individuals Recovery rebate for each taxpayer of $1,200 ($2,400 for joint returns). Plus $500 for every qualifying child. Rebates are means tested and begin phasing out […]

Student Loan Repayment

The CARES Act helps most individual federal loan borrowers. There is a provision for student loan assistance programs that will benefit all student loan borrowers, but Private and FFEL loan borrowers need to contact their lender or services to see if they offer this new benefit. Summary of Cares Act Stimulus changes for federal loans: […]

Effect Date for Employment Tax Credits Under the Families First Coronavirus

Effect Date for Employment Tax Credits Under the Families First Coronavirus Response Act Notice-2020-21 Notice 2020-21 provides that employment tax credits for paid qualified sick leave wages and paid qualified family leave wages required by the Families First Coronavirus Response Act (“the Act”) will apply to wages and compensation paid for periods beginning on April […]

IRS unveils new People First Initiative; COVID-19

IRS unveils new People First Initiative; COVID-19 Projected start date April 01-July 15 To help people facing the challenges of COVID-19 issues the Internal Revenue Service announced today a sweeping series of steps to assist taxpayers by providing relief on a variety of issues ranging from easing payment to postponing compliance actions. The People First […]

Treasury, IRS and Labor announce plan to implement Coronavirus-related paid leave

The U.S. Treasury Department, Internal Revenue Service and the U.S Department of Labor announced that small and midsize employers can began taking advantage of the 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. This relief to employees and small […]

Possible Federal Responses on Deck

On Friday, President Trump declared a national emergency, using powers that rest in the executive branch. Earlier Tuesday afternoon, Treasury Secretary Steven Mnuchin announced the administration is “giving individuals and many business 90 extra days. Individuals can defer up to $1 million. All you have to do is file your taxes. You’ll automatically not get […]