COVID-19 Stimulus Update
- kjtax
- Apr 5, 2020
- 1 min read
Updated: Mar 16, 2021
Details subject to change.
Individuals
2019 Tax Deadline
15 July 2020
Stimulus Payments
$1,200 for single, $2,400 for married (for certain income levels)
Based off of 2019 tax return. If not yet filed based on 2018 return
Retirement Distributions
No Required Minimum Distributions (RMDs) for 2020
No penalty on early distributions
Distributions can be paid back in three years and will be considered a 60-day rollover
Charitable Contributions
Up to $300 can be deducted on top of the standard deduction for 2020 (without itemizing)
Social Security Recipients
Eligible to receive stimulus without filing tax return
Employees
Paid Sick Leave
$200 per day for caregivers up to 12 weeks
$511 for sick employee up to 10 days
Layoff/Furlough
Individuals with no work or telework option (state unemployment + $600 per week)
Self-Employed
Unemployment Benefits
Extended to self-employed
Amount = state benefit + $600 per week
Estimated Tax Payments
1st quarter estimated payments due July 15
2nd quarter estimated payments due July 15
Self-Employed & Small Businesses
Payroll
Paid Sick Leave
Reimbursed via payroll tax credits
Delayed Payroll Tax
Retention Credit
50% of wages up to $10k quarter after Mar 12
Reimbursed via payroll tax credits
Ineligible with PPP loan
Layoff/Furlough
Employees become eligible for unemployment
Grant/Loans
Economic Injury Disaster Loan (EIDL)
Used for operating expenses
Grant of $10k received within days
Loan amounts paid at 3% over 30 years
No loan forgiveness
Apply on SBA website
Paycheck Protection Program (PPP)
Used for payroll, rent, and utility expenses for 8 weeks up to $10mil
Loan amount up to 2.5 times average monthly payroll
Loan amount paid at ~1% over 2-10 years
Could be forgiven if 75% of the loan is used for payroll expenses (can rehire staff)
Penalty if staff is reduced by 25%
Ineligible if using payroll retention credit or EIDL
Apply with SBA approved lenders
