Happy New Year to all!
We are starting the year off with some good news. As I'm sure you have all heard by now, Congress finally passed another COVID Relief bill. The Consolidated Appropriations Act was signed by President Trump last week.
As a result, many taxpayers will be receiving an additional $600 Economic Impact Payment, $1200 for joint filers plus $600 per dependent under age 17. I've heard from several people already that the payments have started hitting bank accounts - so check your bank balances!
The phase-outs are the same as the payments earlier in the year and are based on 2019 return information.
The additional $300 per week of unemployment benefits has also been extended for another 10 weeks - this includes self-employed individuals collecting under the PUA program.
A few changes for our Business clients:
- We now have the second round of PPP loans coming available... known as PPP2.
If you did not receive a loan in 2020 - you have a new opportunity to apply.
Also If you received a loan in 2020 - you can now apply for an additional amount if you used all the prior funds.
In either case you must demonstrate a drop in revenue from 2019 - 2020.
If you are interested in pursuing this under either circumstance - my recommendation is to start with your current lender.
If that is not an option for any reason or if you've had a bad experience in the first round (some banks had difficulty processing loans efficiently and timely) then please let me know, I now have access to online lending specifically designed for these programs. - On the forgiveness side of the first-round of PPP loans - the application for forgiveness has been greatly simplified for amounts up to $150,000.
You no longer need to provide documentation but it is still recommended that you maintain your records (as always).
The allowable use of funds has been greatly expanded, however, 60% of the funds must still be for payroll expenses. The use of funds expansion was made retroactively.
In addition - the expenses are fully deductible and the loan itself is not taxable - that is a huge win for all of us!
For now, these are just highlights- there was much more packed into the new bill - it was over 5000 pages. I will be learning more about it in the coming weeks. I intend to be here to support you with any questions or concerns.
On a final note, please keep an eye out for our engagement letters. They have been sent electronically this year to all individuals. If you do not see it in your inbox, please check your junk/clutter box. A paper copy is also available if you are not comfortable with the electronic process. For a paper copy or other assistance, please reach out to Luna at the reception desk.
We are also providing online access to organizers. If you would prefer to receive an online organizer to assist in gathering your information, please indicate this on your engagement letter or touch base with Natalie @ ext 11.
Wishing you all a happy, healthy and prosperous New Year!