COVID-19 TAX RELIEF

This is a general summary of our most frequently asked about tax relief efforts. Please contact us to discuss how these financial assistance may apply to your unique situation and/or for a more comprehensive list of the different financial assistance enacted.

FOR INDIVIDUALS



Stimulus Checks

Under the CARES Act, eligible individuals will be allowed an income tax credit for 2020 equal to the sum of:
  • $1,200 ($2,400 for joint return filers)
  • $500 for each qualifying child of the taxpayer
There is a limit and phase-out of this tax credit based on your income.
Find out how much you will receive by using the Stimulus Calculator created by the American Institute of CPAs.
Advance of the credit
IRS will be sending the rebates out immediately based on the 2019 filed tax return. If your 2019 tax return isn’t filed, the IRS will base the rebate amounts off the 2018 tax return. Eligible taxpayers don’t need to take any action and the rebate checks will be deposited directly if bank account information was included with the 2018 or 2019 tax return. If there isn’t any bank account information on file, the IRS will mail a check.

Reconciliation
The credit will be reconciled on the 2020 tax return filed in 2021. When filing the 2020 tax return, the credit calculated will be reduced (but not below zero) by the amount received in advance in 2020. If further credit is owed, it will be allowed on the 2020 tax return.

New York State Unemployment Insurance

If you currently lost your job through no fault of your own we recommend you apply for unemployment benefits as soon as possible. The CARES Act was enacted on Friday, March 27th, 2020. Please see the CARES Act Website for more information about how the CARES Act may affect Unemployment Insurance benefits. Any claim you file will be backdated to the date you became unemployed. If you are eligible, you will be paid for all benefits due. Click here for more information on qualifications and how to file a claim.

If you are self-employed, you may now file for Unemployment Insurance benefits online. See the Guidance for Self-Employed Individuals.

If you are filing a new Unemployment Insurance claim, the day you should apply is based on the first letter of your last name.

A - F file on Monday | G - N file on Tuesday | O - Z file on Wednesday
Missed your day? File on Thurs-Fri-Sat

Claims Center: (888) 209-8124

If you need to contact the department by phone we recommend to call as early as possible to minimize the wait time.

Extended telephone filing hours as follows:
Monday through Thursday, 8AM to 7:30PM
Friday, 8:00AM to 6:00PM
Saturday, 7:30AM to 8:00PM

Click here for other contact methods and telephone numbers.

New York State Student Loans

Employer Paid Student Loans
The CARES Act adds to the types of educational payments that are excluded from employee gross income “eligible student loan repayments” made before January 1, 2021. The payments are subject to the overall $5,250 per employee limit for all educational payments.

Eligible student loan repayments are payments by an employer, whether paid to the employee or directly to the lender, of principal and/or interest on any qualified higher education loans.

Federal Student Loan Payments Deferred
The CARES Act provides for the suspension of payments on Federal student loans through September 30, 2020.
Must contact loan provider to pause payment.

FOR SMALL BUSINESSES



Small Business Administration (SBA) Loan Programs

We recommend all our business and self-employed clients explore securing SBA guaranteed loans as soon as possible. Various lenders are available and you may find more information here.

Paycheck Protection Program “PPP”

Lenders can approve applications beginning on April 3, 2020 for small businesses (April 10, 2020 for self-employed and independent contractors). We recommend all eligible business clients begin the application process as soon as possible.

This SBA program essentially provides a forgivable tax-free loan to small businesses to cover payroll, rent, utilities and interest for an 8 week period.

Eligible businesses (including self-employed individuals and contractors) may receive up to 2.5 months of monthly “payroll costs” in the form of a loan (a portion of which may be forgiven). Loans may be forgiven if the borrower maintains or restores payroll during the current economic crisis.

Note: Taxpayers aren’t eligible for a PPP loan if they claim the Employee Retention Credit.

Resources:

Due Date Extentions

  • All Federal income tax returns due on April 15, 2020 have been postponed until July 15, 2020
  • The deadline for making IRA contributions has also been extended to July 15, 2020
Click here for Frequently Asked Questions regarding the change in due dates.
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