Things to know about the COVID-19 Stimulus Package : Individuals and Small Businesses
*Individuals
Additional payments of $600 to individuals making up to $75,000 per year and $1,200 per married couple filing jointly earning up to $150,000 per year (based on 2019 tax returns) — with payments phased out at $99,000 and $198,000 respectively — plus $600 per qualifying child;
An additional $300 per week in unemployment benefits, including for the self-employed, gig-economy workers and others in nontraditional employment, through March 14, 2021, with the maximum period for state-paid benefits extended to 50 weeks;
An extended eviction moratorium;
Federal rental assistance for families affected by COVID-19, applicable to past due rent, future rent payments, and utility and energy bills;
Potentially larger earned income tax credits and child tax credits for some taxpayers;
Loosened requirements for medical expense deductions beginning in 2021;
Expansion of charitable contribution tax deductions for non-itemizers through 2021 ($300 for the 2020 tax year - not clear on whether this is per person or per tax return);
New rules for disaster-related distributions from retirement plans.
*Small Businesses
Helpful Articles and Videos:
Video: Small Business Update from the US Chamber of Commerce
New round of Paycheck Protection Program (PPP);
Expanded PPP-eligible expenses (see resources above for more info);
Forgiven PPP Expenses are now tax deductible;
Simplified Form for PPP Forgiveness. If your PPP loan was for $150,000 or less, there will be a new, simple, one-page form to apply for forgiveness.
EIDL Cash Advance Payments will no longer impact the forgiveness of PPP Loans;
New targeted Economic Injury Disaster Loan grants from the Small Business Administration (SBA) for businesses in low-income communities;
Dedicated funding for live venues, independent movie theaters and cultural institutions;
Extended and expanded Employee Retention Tax Credit for eligible employers that continue to pay employee wages during COVID-19 closures or after experiencing reduced revenue;
Extended tax credits for paid sick and family leave;
Extended mandatory paid sick and family leave for qualifying COVID-19-related reasons;
100% business meals tax deduction for 2021 and 2022 for food purchased from restaurants;
Extended repayment period for deferred payroll taxes;
MORE TO COME!!!
*Thank you to Scheer, Guarnieri and Associates CPAs LLP for helping distill the 5600-page ruling so we could share this with you today.
