Tax Refund Interest Payment - If you paid your 2019 taxes by April 15, you may be receiving an interest payment due to COVID-19 disaster-related postponement of this year's filing deadline to July 15. Expecting a refund…? Visit IRS.gov
September 2, 2020 — Congress continues stalemate to approve the second round of stimulus checks up to $1,200 “Coronavirus Aid, Relief, and Economic Security Act” (CARES Act), a $2 trillion stimulus package to mitigate the impact of the COVID-19 pandemic, provided stimulus payments of $1,200 for each individual and $500 for each child (under age 17).
Are 2020 Taxes Due on Stimulus payments? — Technically, the stimulus checks are an IRS advance and a 2020 “refundable tax credit”. If you have less income in 2020 than 2019 (layoffs, reduced hours and closed businesses) and your rebate payment was reduced by AGI threshold, you’ll receive a credit for the difference on your 2020 return. Contact us to help determine your tax implications.
Coronavirus-Related Paid Leave for Workers and Tax Credits for Small and Midsize Business
The US Treasury Department, Internal Revenue Service (IRS), and the U.S. Department of Labor (Labor) announced that small and midsize employers can begin taking advantage of two new refundable payroll tax credits, designed to immediately and fully reimburse them, dollar-for-dollar, for the cost of providing Coronavirus-related leave to their employees. This relief to employees and small and midsize businesses is provided under the Families First Coronavirus Response Act (Act).
Paycheck Protection Program (PPP) Application Deadline: August 8, 2020. "The Paycheck Protection Program (PPP) provides small businesses (500 or fewer employees) with loans up to $10 million to pay up to eight weeks of payroll and benefits with 100 percent loan forgiveness if a business sustains its pre-COVID-19 payroll levels through June 30, 2020 (U.S. Treasury Guidelines)." Funds are provided in the form of loans that will be fully forgiven when used for payroll costs, interest on mortgages, rent, and utilities (at least 75% must have been used for payroll). You can apply through any existing SBA 7(a) lender or federally insured depository institution, federally insured credit union, and Farm Credit System institution that is participating.
To schedule a consultation for tax returns, SBA small business Paycheck Protection (PPP) loans, or tax credits (via phone, Skype or Zoom), please call our office at 206-281-9444 or email Mimi@mercerislandaccountants.com. Following guidance from Washington public health authorities, the U.S. Centers for Disease Control and Prevention (CDC) and the World Health Organization (WHO), Mercer Island Accountants continues to implement strategies to protect our staff and ensure continuity of service to our clients. As such, tax documents may be dropped off at our office (limited hours: 11am-3pm), mailed or uploaded via our secure file-sharing portal SmartVault to meet the October 15, 2020 extension tax filing deadline.
With so many unknowns, with anxiety at an all-time high…let us help ease your anxiety during this uncertain and critical time by preparing your taxes to get you the best return! Our focus, as your trusted accounting partner, is to take care of your tax and accounting needs during this critical and uncertain time.
Best regards for your health and safety,
Mimi Pangallo, CPA
MERCER ISLAND ACCOUNTANTS
PANGALLO & ASSOCIATES
2731 77th Ave SE, Suite 102 Mercer Island, WA 98040