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COVID-19 Tax Repercussions and Stimulus Package Information


Income Tax Filing Due Date Extension

The due date for all individual returns has been pushed back from April 15th, to July 15th, 2020. This also applies to all 1st Quarter 2020 Estimated Payments. <BOLD_OPEN>Second Quarter Estimates are still due on June 15th, 2020!<BOLD_CLOSE>


The stimulus package will provide people who are collecting unemployment with an extra $600 per week for up to 4 months to help through this time.

Individual Rebate Check Payouts

Under the new stimulus package, Single Adults whose gross income for 2019 was $75,000 or less will receive a $1,200 check. For those who made more than that, the amount you will receive begins to phase out after $75,000. For every $100 over that threshold, you will lose $5. That means that if you made more than $99,000 in 2019, you will have been completely phased out of the stimulus payout.

Married Couple Rebate Check Payouts

For Married Couples, the payout is increased to $2,400, and the phase outs are increased to $150,000 to $198,000. For households that make less than $150,000, they will receive the full payout. Then the same phaseout applies as in the individuals, in that, for every $100 over the $150,000, you will lose $5 of payout.

Head of Household Rebate Check Payouts

For individuals that have children and claim head of household, their phaseout range starts at $112,500.

Additions to Payouts for Qualifying Children

Parents of qualifying children will receive an additional $500 per child. Child qualification follows the same requirements defined for the Child Tax Credit. They must be under the age of 17. <BOLD_OPEN>If you are claimed as a dependent on someone else's return, you will NOT receive a $1,200 check.<BOLD_CLOSE>

What if I lost my job in 2020 because of the coronavirus and my income will be reduced, will I still get a rebate check?

For those who did not qualify for a rebate check based off of their 2019 income but lost their job or will have reduced income in 2020, you may still receive some benefit on your 2020 tax return. This federal rebate is being treated as a "prepayment" of a 2020 refundable tax credit. So if you don't receive anything now, you may qualify to get an additional refund on your 2020 tax return next tax season.

Do I need to have filed a 2019 tax return in order to receive a rebate check?

If you haven't filed a 2019 return yet, but you did file a 2018 tax return, the IRS will use your 2018 tax return to see if you qualify for a rebate check.

I have not filed a tax return the last few years due to not having any taxable income (SSI only for example). Do I need to file a return for 2019?

If you are collecting Social Security Income, the IRS will use your Direct Deposit information to send out the stimulus rebate. If you are not collecting social security and haven't filed a return for the last couple years, then yes, you need to file a tax return for 2019.

I have an ITIN, do I qualify for the rebate payout?

No, unfortunately you must have a Social Security Number in order to qualify for the rebate payout.

Will my rebate check get automatically applied to any of my past due federal or state tax debts?

The only past due debt that will affect your rebate is if you have past due Child Support payments. Those individuals will not receive a rebate check.

I am Self-Employed. Do I qualify for Unemployment?

Typically no, but under the new stimulus package, there is a portion called the CARES Act that changes that. If you have been affected by the Coronavirus Outbreak, then you actually can apply for unemployment during this time. More information regarding the CARES Act is detailed below.

Will the rebate check be treated as taxable income?

NO! Since it is a prepayment of a refundable credit, it is just like the earned income credit or child tax credit and it is not taxable.

For more information regarding Individual RMD's, Unemployment, Mortgages, Student Loan Interest and other information affected by the Stimulus Package, please refer to the following link:


CARES Act for Small Businesses

Simplify your search for small business relief funding by clicking on the following link and answering a few quick questions.


Under the new stimulus package, the government has stated that $349 billion will be given out as small business loans that may qualify as "forgivable", meaning that the businesses may not have to repay them. They have not released exact guidelines for who does and does not qualify for the forgiveness yet, but we will keep our eyes peeled on the new information as it is released. You need to apply for these loans through private banks. These loans must be used for things such as Rent, Utilities, Payroll and other overhead expenses.

This program also allows employers (and self-employed individuals) to defer paying their portion of the Social Security payroll tax (6.2%) through December 31, 2020.

Another portion includes the Employee Retention Payroll Tax Credit. Certain employers may receive a tax credit of as much as $5,000 per employee for wages paid after March 12, 2020 through December 31, 2020. If the credit amount exceeds the employer's liability, the excess shall be refundable. Any employer whose business was fully or partially suspended in 2020 due to government orders associated with COVID-19, or for those who experienced a significant decline in sales, may be eligible to receive this refundable credit. Significant decline is defined as less than 50% of the usual gross receipts of the same calendar quarter of 2019. The credit amount is equal to 50% of the qualified wages of an employee, but such wages cannot be more than $10,000 per employee.

For more information regarding the Paycheck Protection Program (PPP Loan) for Small Businesses, please refer to the following link:


Make sure you talk with your preferred local private bank to get more information regarding Small Business Administration Low Interest Rate Loans and other information regarding the CARES Act.