Coronavirus Resource Center

stay up to date with how the CARES Act will assist INDIVIDUALS and business owners.

 
 

On Friday, March 27th, President Trump signed the “Coronavirus Aid, Relief and Economic Security Act” dubbed the CARES Act. The 880 page, $2.2 trillion stimulus package, provides widespread emergency assistance to individuals, families, small businesses, and corporations affected by the current pandemic.

Below are highlights that we feel pertain to our clients and their families. For additional information, check out the resource links posted below. Our team will continue to update this page as more developments evolve.

INDIVIDUALS

  • Tax Filing Deadline has been extended to July 15.

  • 2019 IRA Contributions have been extended to July 15.

  • Direct Payments to Individuals and Families – Recovery checks of $1,200 per adult with $500 extra per child subject to gradual phaseouts starting at $75,000 AGI for individual filer and $150,00 AGI for joint filers.

  • Required Minimum Distributions (RMD) from tax-deferred accounts (Traditional IRA, SEP IRA, SIMPLE IRA, 401(k), 403(b) or 457(b)) for 2020 are suspended.

  • Early Retirement Withdrawals - The ability to withdraw up to $100,000 from your IRA or workplace retirement plan in 2020 without the usual 10% penalty applied to early withdrawals. You will also have the option to spread out any income taxes from these withdrawals over the next three tax years – or you could replace the funds in the account within three years to avoid any tax penalty. This exception applies to coronavirus-related hardships, which include “loss of employment, reduced hours, quarantine, or being unable to work due to lack of childcare.”

Business owners

  • Business Tax Provisions – Delay of tax payments until October 15, deferral of employer 6.2% payroll tax for 1-2 years, and various tax modifications aimed at increasing refunds this year. Note: Business may not qualify for payroll tax deferral if they choose to utilize SBA relief described below.

  • Small Business Administration (SBA) Loans - $350 billion is dedicated to preventing layoffs and business closures while workers have to stay home during the outbreak. Companies with 500 employees or fewer that maintain their payroll during coronavirus can receive up to 8 weeks of cash-flow assistance. If employers maintain payroll, the portion of the loans used for covered payroll costs, interest on mortgage obligations, rent, and utilities would be forgiven. Applications can begin April 3rd and we recommend reaching out to your personal banker to apply.

  • Charitable Contributions - The 10% limit on charitable contributions is increased to 25% of taxable income (Section 2105)

  • Families First Coronavirus Response Act (FFCRA) - requires most employers with 500 employees or fewer to provide employees with paid sick leave or expanded family and medical leave for specified reasons related to COVID-19. Companies are able to seek reimbursement for these costs through tax credits. Visit the U.S Department of Labor website for more information.

Resources