The coronavirus pandemic is affecting businesses in a variety of ways. From loss of business to remote work, things are changing fast during the COVID-19 outbreak. We are working to bring you the best informations to help you this challenging time.
1 - The Stimulus Check
The stimulus check is an advance of a refundable tax credit on your 2020 taxes.
When will you be getting a check?
You must have filed your 2018 or 2019 tax return. If you did, you will receive the check within 3 weeks.
Be aware of scams. The IRS does not call you. You should receive a letter.
If you are dependent on someone else in 2018 and 2019, you will not receive a check.
American adults will be granted the following on-time payments:
- $1,200 payment to single individual taxpayers;
- $$2,400 payment for married couples filing jointly;
- An additional $500 per qualifying child under the age of 17.
When does the income phaseout begin to occur?
- Single - AGI of $75,000;
- Married - AGI of $150,000;
- Head of household - AGI of $112,500.
The stimulus check is reduced by 5% of your AGI above the start of the income phaseout.
- Single - $99,000;
- Married - $198,000
2 - Retirement Plan changes
You can withdraw money from your retirement account up to $100,000 without the early withdrawal penalty being applied. The sum withdrawn may be re-contributed to a retirement account within three years, without being subject to the usual annual contribution subject to the usual annual contribution caps.
If it is not repaid the withdrawal will be taxed at ordinary income tax rates over a three year period.
In addition, the limit for retirement plan loans has been temporarily raised from the normal $50,000 to $100,000 while the current rule that loans may not exceed half of a 401(k) participants vested account balance has been waived.
3 - SBA Loan
Basic loan terms:
Amount: up to $2 million.
Interest rates: 2.75% (qualified nonprofit) / 3.75% qualified for-profit
Maximum term: up to 30 years.
Collateral requirements if it is over $25,000.
Who can apply: sole proprietorship, partnership, LLC, corporation
4 - Unemployment
if you lost your income and wasn't your fault, you can apply for unemployment even if you are an independent contractor.