Cozzi Tax Services Inc.

The Coronavirus Aid, Relief and Economic Security (CARES) Act recently signed into law is the largest emergency aid package in US history and will provide $2 trillion to individuals and businesses during this uncertain time. According to the Tax Policy Center, about 90% of Americans will receive money under this act.
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$250 billion for individuals and families
$350 billion for small businesses
$250 billion for unemployment insurance benefits
$500 billion for distressed companies
$130 billion for hospitals
$150 billion for state and local governments

Stimulus payment amounts for individuals and families are as follows:

Singles - $1,200
Head of household filers - $1,200
Married couples - $2,400
Parents - $500 for each child under age 17

Payments begin to phase out at certain adjusted gross income (AGI) levels based on a taxpayer’s 2019 tax return if they’ve already filed and their 2018 tax return if they haven’t filed yet.

Phaseout levels
Singles - Begins at $75,000, phases out completely at $99,000
Head of household - Begins at $112,500, phases out completely at $136,500

Couples (with no children) - Begins at $150,000, phases out completely at $198,000

Children - No limit to how many children under age 17 a parent can receive $500 for.

For every $100 above income thresholds, the amount the taxpayer receives will decrease by $5.

QUICK FACTS TO KEEP IN MIND:

The money received is nontaxable.
Stimulus payments are technically advances of a refundable tax credit.
If someone receives an underpayment, they’ll be able to get the money they were owed when they file their 2020 tax return.
If someone receives an over payment, they shouldn’t have to pay anything back.
Stimulus payments do not affect 2019 tax refunds.
Taxpayers should still receive a stimulus payment even if they owe a tax debt.
Seniors who do not file a tax return will still be able to receive money if they meet the income qualifications based on their SSA-1099 form or RRB forms.
Adults who are claimed as dependents (such as college students or seniors) will not receive money.
U.S. citizens living abroad will receive money if they meet income requirements and have a social security number.

WHEN WILL INDIVIDUALS SEE THIS MONEY?

US Treasury Secretary, Steven Mnuchin, said stimulus payments will start going out 3 weeks after the bill passed, but some speculate it could be months for certain taxpayers.

Those who selected direct deposit for their tax return will likely receive their money sooner than those who opted to receive their refund by mail. However, the IRS will also be offering an online portal to those taxpayers who opted to receive their refund by mail to provide their banking information.

The COVID-19 pandemic has created havoc for many of our businesses. Aside from the very serious and at tragic health consequences, many people are also experiencing reduced or loss of their income and businesses have a drastic drop in revenue due to shut downs and restructuring.

Our government has pulled a few resources that could really help many. While individuals can ask for unemployment and social assistances, there are also grants and loan programs available for businesses.

Click on the link to read, directly from the U.S. Senate Committee on Small Business and Entrepreneurship, the guidelines to the CARES ACT. Here you will find important resources.https://www.sbc.senate.gov/public/_cache/files/9/7/97ac840c-28b7-4e49-b872-d30a995d8dae/F2CF1DD78E6D6C8C8C3BF58C6D1DDB2B.small-business-owner-s-guide-to-the-cares-act-final-.pdf