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The legislation will use the 2019 tax returns if available. 2018 tax returns will be used if not. Those who did not file can use SSA-1099, social security benefits statement, or RRB-1099 to qualify.
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$1,200 for individuals & $2,400 for couple. $500 additional for each child under 17. A family of 4 would receive $3,400
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Starts to phase out at $75k for single filers and gone at $99k
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Starts to phase out at $150k for married joint filers and gone at $199k
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Starts to phase out at $122,500 for the head of household
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In all 3 scenarios, the stimulus check will be reduced by $5/$100 over the phase-out
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If you made too much in 18 or 19 to qualify, but your income falls in 2020 under the threshold, then you will receive the credit on your 2020 tax return, AND those who make more than the phase-outs in 2020 will not have to pay it back
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There is no minimum income
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Payments will be issued as direct deposit or checks based on 2019 tax returns (or 2018 if 2019 return hasn’t been filed).
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The bill indicates non-filers will need to file a tax return to claim a rebate in 2020.
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Common Questions and Answers
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Will they take my stimulus check if I owe 2019 taxes? – No
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Will they take my stimulus check if I owe prior taxes? – No
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Will the stimulus check be taxable income – No
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When will I get my stimulus check -? we don’t know – some say around mid-April, others say in May – Mnuchin (Secretary of Treasury) said within 3 weeks of legislation being signed into law
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How will I get my stimulus check? – if you used direct deposit information on your last filed tax return, it will go directly into his account; if not, it will be mailed. If you haven’t filed a 2018 or 2019 return, then it will rely on the information on file at the Social Security Administration
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Do I have to sign up to receive a check? – No
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When will my full unemployment be available – In several weeks most likely. The states must reprogram their systems to account for the additional federal funding
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How do I apply for the small business (SBA) loans or payroll grant loan programs – Businesses will apply for these loans at SBA approved banks and lenders
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What is the grant/forgiveness – 8 weeks of payroll, benefits, rent, mortgages, and utilities
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Will this forgiveness be treated as taxable income? – No
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This is called the Paycheck Protection Program
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How long will SBA loans take? – Not sure yet
Stimulus
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The legislation will use the 2019 tax returns, if available or 2018, if not. Those who did not file can use SSA-1099, social security benefits statement, or RRB-1099 to qualify.
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$1,200 for individuals & $2,400 for couple. $500 additional for each child under 17. A family of 4 would receive $3,400
-
Starts to phase out at $75k for single filers and gone at $99k
-
Starts to phase out at $150k for married joint filers and gone at $199k
-
Starts to phase out at $122,500 for the head of household
-
In all 3 scenarios, the stimulus check will be reduced by $5/$100 over the phase-out
-
If you made too much in 18 or 19 to qualify, but your income falls in 2020 under the threshold, then you will receive the credit on your 2020 tax return, AND those who make more than the phase-outs in 2020 will not have to pay it back
-
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There is no minimum income
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Payments will be issued as direct deposit or checks based on 2019 tax returns or 18 if 19 hasn’t been filed.
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The bill indicates non-filers will need to fie a tax return to claim a rebate
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Student loan payments suspended until Sept 30th without penalty
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Unemployment is typically just handled by the state DOL and is approx. 60% of typical pay. The federal government is now giving up to an extra $600/week per worker for 4 months, so anyone drawing unemployment will receive 100% of their typical pay. So, this is $600/week on top of the state benefits.
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On a federal level, this also applies to non-traditional employees. For the first time ever, 1099 independent contractors and self-employed, gig workers, etc. will qualify for these benefits. We are currently not sure if this is just the $600/week on the federal level or if there will be a state benefit also – all applications will go through state DOL
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A refundable payroll tax credit for businesses experiencing a 50% drop in income compared to the same quarter last year.
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This credit covers wages and health benefits up to $10k per employee wages. – Doesn’t apply to the usage of sick pay or family leave
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Advance payments on this will be made via payroll tax credits
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Waiving of penalties for employers who do not deposit applicable payroll taxes in anticipation of this credit
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This credit is not available to employers receiving Small Business Interruption Loans. Also, if you apply for this credit, you will not be eligible for SBA forgiveness loans
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Credit is provided through Dec 31, 2020
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Special loans to businesses that retain 85% of employment levels from loan approval date – 8 weeks. The loans have a 5-year cap. There is $349 billion in loans to small businesses as part of this package. Money spent on rent, payroll, and utilities can become grants/forgiveness. Basically, businesses will not have to repay portions of the loan if they maintain their workforce
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SBA approved lenders will be authorized to make loans equal to 250% of an employer’s monthly payroll
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Under these 8 weeks of payroll, benefits, rent, mortgages, utilities will be forgiven
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Loans available through 800 SBA – approved banks, credit unions, and lenders.
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If you take the $10k grant mentioned above, that will come off this forgiveness
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If you already have an SBA loan, you will not have to pay interest or principal for 6 month – 12 months with approval
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Employer deferrals of payroll taxes – 2020 employer FICA taxes & ½ of SECA (6.5% SSI) taxes can be deferred for all of 2020. ½ of this deferral due on 2021 & ½ in 2022.
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Waiving of the 10% tax on early distributions/withdrawals of IRAs and 401ks for anyone who has (or their family) has been infected by the virus. – capped at $100k
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Waiver of required minimum distributions from IRAs in 2020
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A $300 charitable contribution deduction that doesn’t require itemizing for individuals who donate to public charities in 2020. Normal itemized charitable deductions still apply as well. The 60% of AGI charitable limitation is increased to 100% for 2020.
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Removal of NOL deduction cap
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Interior building improvements can be immediately expensed instead of 15-year depreciation
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$117 billion for hospitals
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Packages for airlines, large corporations, etc.
GA Unemployment details and options
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Employers are required to file partial claims if there is a temp reduction of hours or not work available.
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Online claims are currently taking 5-7 days
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GA will pay approx. 60% of employee’s historical pay & tips.
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Feds are kicking in up to $600 for 100% pay for most employees
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Visit the department of labor website for further instructions and details
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Unemployment extended up to 4 months in some cases
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Business unemployment rates will not go up due to partial unemployment claims during this time
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Unemployment benefits are taxable to the employee
Local Athens/GA Options
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$1k grant if you have a business downtown with 1-10 employees. Go to Athens Downtown Development Authority website for application and details – grants as fast as 1 day
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Clarke County Business Personal Property Tax Returns are still due April 1 (must be postmarked by 5 pm on 4/1)
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$3 million set aside by Mayor and Commission for Athens
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No current determination on details or how to apply/receive benefits
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Georgia Sec of State LLC renewals are extended to May 1, 2020
Here is what we know
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The IRS & GA filing deadline and payment deadline has been extended to July 15, 2020. Personal tax returns and payments are not due until this time.
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Unemployment claims filed by business owners and employees are being processed very efficiently and timely. This is online and can be found DOL website
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IRS and GA tax refunds are still being processed and issued timely. Most refunds are direct deposited in 10 – 14 days.
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2020 1st quarter estimated tax payments (1/4ly estimated payments) are extended to July 15th.
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C Corporations returns are not due until July 15th. Partnerships and S-corps were due March 15th of if you filed an extension are now due Sept 15th.
Here is what we are seeing and hearing from our clients
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We have seen a 100% success rate in business clients getting a 1-3 month deferral on vehicle and equipment loans
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We have seen a 100% success rate in business clients getting a 1-3 month deferral on major credit cards, Home Depot cards/accounts, etc.
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The government has passed a 60-day deferment on all student payments.
Here are some things we are hearing and reading
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Lots of lenders are offering a 30 – 90 day deferral on all line of credit payments
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Most large mortgage companies are granting 90-day deferrals
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SBA business loans are allowing up to 12-month deferrals on existing loans
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If you are a business owner, go to the GA or your state department of labor website and read the emergency rules. You MUST apply as a business owner in some cases, or you will get penalties and fines.
We are working diligently to get you all the details and information we can. Please be patient with us as we are combing through thousands of pages of material, hundreds of articles and websites, interpretations, etc. We are also getting a couple hundred phone calls and emails each day on the stimulus. We are happy to help, but please thoroughly read all of the items above and visit the recommended websites as this provides answers to most questions. This is all we know for now, and we will send out more information via email and on our Facebook page as we are able to provide more details, direction, and options.
