The government has finally agreed to pass a massive stimulus bill to help stimulate the country’s economy and help citizens who are struggling as COVID-19 continues to spread. The bill, which provides $2 trillion in assistance, helps thousands of businesses and millions of taxpayers who have been affected by the pandemic. Here are some of the major points of the bill.
One part of the bill deals with issuing stimulus checks directly to citizens. For individuals making less than $75,000, they would receive a maximum of $1,200. Couples making less than $198,000 would receive a maximum of $2,400 with an addition of $500 per child. There are income phaseouts for these stimulus checks. These funds would not be taxable as they are considered disaster relief. Taxpayers who still owe back taxes will also still receive a stimulus check. The amount you receive is determined by the stated income on your 2019 tax return if it is filed. It is vital that you have both your 2018 and 2019 tax return filed so you can receive your check as quickly as possible. If you need help filing either re-turns, Polston Tax can help!
Small Business Loans
The bill also allocates $350 billion in loans to small businesses affected by the pandemic. Companies with 500 employees or less could be eligible for up to $10 million in forgivable small business loans. These can be used to make payroll, pay your rent, utilities or other vendors. The loans are meant to help carry your business through to the end of this crisis. It also gives another $562 billion in money to the Small Business Association for SBA disaster loans. These loans can also be used to help you pay the necessary bills in order to keep your doors open. Business tax returns may be needed when applying for these loans.
The bill also is giving unemployed workers an extra $600 a week on top of their state benefits for up to four months. The law also extended the amount of time for taxpayers to receive unemployment benefits. Eligibility is also changing with the new law. Eligibility has now been expanded to those who are unemployed, partially unemployed or unable to work because of the virus and usually don’t qualify for traditional benefits. This includes people who are independent contractors, self-employed, or other industries.
The federal government has already waived two months of payments and interest for federal student loan borrowers. In the bill, Congress suspended all automatic payments for any student loans held by the federal government. Loans are eligible for this if they were borrowed from the federal government.
Our team is staying on top of all the changes and all the latest options for taxpayers and small business owners. If you need help, contact Polston Tax! Give us a call at 844-841-9857 or click below to schedule your free consultation.