All Those COVID-19 Relief Programs — Where to Start?
Our head is spinning, how about yours?
The past several weeks have been incredibly grueling. Our doors have been closed to clients and visitors since March 17. Most of our staff are working remotely. Deadlines, directives, initiatives, and the details within them change by the minute.
We are fortunate, though. LSWG is still able to operate. We haven’t had to lay anyone off. So many of our clients and friends can’t say the same. It is tough to stay focused with so much upheaval and uncertainty. But we are focused–with principals and staff preparing tax returns, conducting audits, providing client accounting services, and sorting through the myriad of relief programs announced in response to the COVID-19 pandemic. So many relief programs. Topping our list:
Federal & State Loans and Grants
Among the many relief efforts announced over the past several weeks, are two we are strongly recommending to our business and nonprofit clients:
The Paycheck Protection Program (PPP) provides funds for small businesses to pay their employees during the COVID-19 crisis. Some portions of the loan will not need to be repaid in certain circumstances. See our previous blog post regarding this program, or contact your lender for more information.
The SBA EIDL program is providing low-interest federal disaster loans to pay small business expenses that could have been met had the disaster not occurred (including payroll and other operating expenses). Principal and interest deferment is available for up to 4 years. Click here for more information and an online application.
Many of the COVID-19 relief programs are mutually exclusive–and all are subject to fund availability–so investigate the PPP and SBA EIDL programs first as we believe they offer the most benefit.
Other programs out there:
Again, all of these programs are subject to funding availability. Apply as soon as possible.
Tax Day is July 15, 2020
By now, we are fairly certain everyone has heard, but we would be remiss if we didn’t include it in this recap: Yes, July 15, 2020, is the new date for filing and paying both your Federal and the State of Maryland income taxes. Other changes:
- Deadline for payment of 2020 first quarter estimated taxes delayed to July 15, 2020.
As of now, second quarter payments are still due June 15, 2020.Post publication update: Late on April 9, 2020, the IRS announced that second quarter estimate tax payments due June 15 are also extended to July 15, 2020.
- IRA contributions for 2019 can be delayed until July 15, 2020.
- Questions about the deadline changes? The IRS has a webpage for that (click here).
…and What About Those Stimulus Checks?
The CARES Act also includes a one-time economic impact payment to individuals.
- On March 30, the Treasury Department announced that distribution of economic impact payments will begin “in the next three weeks,” but it has been suggested that it could take up to two months (i.e., more like the end of May).
- Generally speaking, the payments will be $1,200 per adult, $2,400 for married couples filing jointly, and an additional $500 per child.
- Amounts start to phase out for those earning more than $75,000 ($150,000 for joint returns and $112,500 for heads of household).
- Checks will be distributed automatically, with no action required for most people.
- Wondering if you’ll receive a check–or what the status is on them? The IRS has a web page for that. Click here.
Take care and be kind to one another.