Stimulus Check by Prepaid Debit Card
The Treasury recently announced that nearly four million people are being sent their Economic Impact Payment by prepaid debit card, instead of paper check. The determination of which taxpayers receive a debit card was made by the Bureau of the Fiscal Service, another part of the Treasury Department that works with the IRS to handle […]
California Unemployment – more benefits are coming
Increased Pandemic Unemployment Assistance (PUA) benefits The EDD recently announced that as of May 20, the EDD is now able to increase the weekly benefit amounts paid to eligible workers applying for the federal Pandemic Unemployment Assistance program or already collecting PUA benefits. This separate federal program launched April 28 in California and applies to […]
I got PPP money and EIDL money… now what?!
When the pandemic hit, many nervous business owners applied for everything that they could to keep their businesses afloat. Now they are seeing random amounts of money being deposited in their bank account and don’t know what to do. Economic Injury Disaster Loan (EIDL): EIDL Loan vs the EIDL Grant There are two of them? […]
Worksheet for Calculating PPP forgiveness
On May 15, 2020 the SBA released a worksheet for calculating PPP loan forgiveness. Note: this worksheet does not provide any more official guidance or definitions on what is forgivable. So taxpayers and their advisors are still in the dark about exactly what qualifies. So, until then you have a nifty excel worksheet that you can […]
Refund of Room and Board that was paid with a 529 plan. What do I do with the money?
[UPDATED] The IRS released Notice 2020-23 which extends the deadline for returning refunds to the 529 plan for taxpayers impacted by COVID-19. For any recontribution that has a due date between April 1 and July 15th the “60-day deadline” is automatically extended to July 15th. ————————————————————— Most colleges and universities sent students home in March […]
Last Chance to get Direct Deposit of your Stimulus Check
If you want your stimulus check to arrive soon and by direct deposit, you need to update your information in Get My Payment by noon on Wednesday, May 13th, the IRS announced today. Starting later this month, the number of paper checks being delivered to taxpayers will sharply increase. For many taxpayers, the last chance […]
Property Tax – Relief from Penalties
If you were unable to pay your California property taxes on time due to COVID-19, you can get relief from penalties, costs, and interest between April 10th when they were due and May 6th. The governor signed an executive order yesterday providing this relief. Relief for the late April property tax payments is only available […]
California does not follow Federal law for all the CARES Act benefit
Being a California tax preparer is an exciting job because we get to memorize two versions of the tax law: Federal Tax Law and California Tax Law. Sometimes the Feds and CA are the same… and sometimes they are different. But, they are different often enough that California has a three-page form we fill out each […]