INFORMATION TO HELP YOU NAVIGATE TAX LAW CHANGES REVOLVING THE COVID-19 GLOBAL PANDEMIC
The IRS has extended the tax filing and payment deadline to 7/15, which means you have until 7/15 to pay your Federal taxes without incurring interest or taxes for late payment. If you make Federal quarterly tax payments, your 1st quarter payments that are normally due 4/15 are now due 7/15.
Please note that State tax returns may or may not follow this Federal guideline. Follow the link below to see how your state is handling tax filings and tax payments.
STIMULUS PAYMENT A.K.A. ECONOMIC IMPACT PAYMENT
The Treasury Department is said to begin distributing payments to individuals starting around April 20th. Single taxpayers will receive $1,200, if their Adjusted Gross Income (AGI) are below $75,000. Taxpayers who are married and filing jointly, with combined AGI below $98,000, will receive $2,400. An additional $500 will be given for each qualified child.
A portion of these payments – $1,200 (single) and $2,400 (married-filing-jointly), will be issued to those taxpayers whose AGI fall between $75,000 and $150,000 (single) or $98,000 and $198,000 (married-filing-jointly). This payment structure will phase out once the taxpayers’ AGI exceed $150,000 (single) or $198,000 (married-filing-jointly).
Follow the link below to read more or calculate how much you could be receiving: https://www.washingtonpost.com/graphics/business/coronavirus-stimulus-check-calculator/?utm_campaign=wp_news_alert_revere_trending_now&utm_medium=email&utm_source=alert&wpisrc=al_trending_now__alert-economy–alert-politics–alert-national&wpmk=1
TIP: If you filed your tax return in 2019, this stimulus payment is based upon that AGI. If you have not filed your 2019 return yet, the stimulus payment will be based upon your 2018 AGI. If your 2018 AGI is lower than your 2019 AGI, you might want to wait until you receive your stimulus payment before filing your 2019 tax return to receive a larger stimulus payment.
The SBA Disaster Loan and the Paycheck Protection Program can be of great assistance to many small business owners and Landlords. You must apply for the SBA Disaster Loan directly with the SBA. A few highlights of the SBA Disaster Loan are:
- Loans available without collateral of up to $25,000
- Loans available with collateral of up to $2,000,000
- The interest rate for small business is 3.75%
- Repayment terms of up to 30 years (determined by credit worthiness on a case by case basis)
Click the following link, https://www.sba.gov/funding-programs/disaster-assistance, for more information on this loan.
The Paycheck Protection Program Loan with the SBA backing will be offered through banks; part of this loan can convert to a grant, which may not have to be repaid.