When do I get my 2nd stimulus check?
As part of the COVID-related Tax Relief Act of 2020, additional stimulus payments have been approved. The payments are $600 per person plus $600 for eligible dependents under the age of 17. If your 2019 Adjusted Gross Income (AGI) is above $75,000 Single, $112,500 Head of Household (HH), or $150,000 Married Filing Jointly (MFJ), then your […]
Nothing like a few last minute tax changes to make 2020 complete!
Late on 12/27/2020 the President signed the COVID-related tax relief Act of 2020. The tax-related provisions include: Allowing the deduction of expenses paid with forgiven PPP debt; Creating a simplified forgiveness process for PPP loans under $150,000; Repealing the provision that reduced PPP forgiveness by the amount of any EIDL advances; Allowing “second draw” PPP […]
Balance Due Notices from the IRS
Did you dutifully mail your payment to the IRS and then receive a scary notice from them saying you owe them more money and it now includes interest and penalties? Next you check your bank account and notice the check hasn’t cleared? Should you cancel the check? Send another check? You try and call the […]
Much ado about the Payroll Tax break
On August 8th the White House published an Executive Memorandum that ordered a deferral of social security payroll taxes for employees earning less than $104k per year from September 1 to December 31, 2020. But, employees may never actually see this tax break in their paychecks. The reasons why are: The President does not have the […]
More answers on PPP loan forgiveness
The SBA published a new set of Frequently Asked Questions yesterday regarding PPP loan forgiveness: A borrower has 10 months from the end of the Covered Period (8 or 24 weeks) to submit their loan forgiveness application, and they are not required to make any payments until the forgiveness amount from that application is remitted […]
Good Changes to the PPP loan forgiveness for Sole Proprietors (no Employees)
On June 17th, the Paycheck Protection Program (PPP) Flexibility Act of 2020 was enacted which made major changes to the provisions for PPP loan forgiveness and the SBA released revised forgiveness applications.Over the next week we will publish articles outlining the changes to the PPP program by business type. (Of course, by the end of the week, […]
Now easier to qualify for a penalty-free retirement distribution
The CARES Act provided taxpayers with the option to take penalty-free coronavirus-related withdrawals of retirement funds of up to $100,000 in the aggregate between January 1, 2020, and before December 31, 2020 (meaning the distribution must be taken by 12/30/2020 to qualify). To qualify for the penalty relief, taxpayers must have a COVID-related reason for […]
Rule Change for the PPP!
In the tradition of having a major tax law change every few days during 2020, Congress has now passed the PPP Flexibility Act and the President is expected to sign it. The key features of the bill: Extending the loan forgiveness covered period from 8 weeks to 24 weeks from the loan origination date, as long […]
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 […]