The Coronavirus Aid, Relief, and Economic Security (CARES) Act distributed money in several different ways to help counteract the economic harm resulting from the COVID-19 pandemic. Medical facilities, businesses, individuals, and families are eligible for payments under the legislation. For many people, relief has come in the form of tax rebates, also known as stimulus payments, delivered either by check or direct deposit. Some people might also benefit from the Internal Revenue Service’s extension of time for filing tax returns and paying amounts owed. If you’re wondering where your CARES payment is or if your small business might be eligible to receive assistance, it’s important to understand the pertinent guidelines.
Rebate checks to individuals and married couples
Stimulus payments were sent to individuals who earned $75,000 or less and to jointly filing married couples whose combined income did not exceed $150,000 on their last filed return. Additional payments were provided for parents of children 17 years old and younger. Recipients who had a bank account on file from a prior return had their funds deposited in mid-April. Checks to other recipients were sent out starting a couple of weeks later. If you haven’t received your payment yet, you can check on its status through the IRS website.
Extensions of time to file taxes and send payments
When the federal government decided that the sudden economic crisis might prevent people from making tax payments by April 15, it granted a three-month extension to July 15. Shortly afterward, the filing deadline was shifted to the same date. However, if you’re expecting a refund, you might want to speed up filing your return to get your money more quickly. State tax authorities have taken a wide range of approaches on this issue, so you should check to see what the deadlines are in your state.
Payroll tax relief for some business owners
The Paycheck Protection Program (PPP) created by the CARES Act provides forgivable loans to businesses that retain their employees. After the program’s initial funding was depleted, Congress authorized a second round. Some small business owners might not be aware that payroll tax relief is available to firms that don’t receive PPP funds. If your business has been shut down due to the pandemic or has experienced a drop in quarterly gross receipts of at least 50 percent, it can obtain a tax credit of up to $5,000.
Whether you have questions about business or personal tax issues, finding a qualified taxation attorney will help you get the answers you need. From there, you can decide how to handle issues related to COVID-19 and other concerns.