Haven’t filed yet? There’s still time! Contact us today to get your taxes done.
No more delays: What to know about the July 15 tax deadline https://www.ksl.com/article/46773513/no-more-delays-what-to-know-about-the-july-15-tax-deadline
KSL.COM
No more delays: What to know about the July 15 tax deadline
Apply now for small business loans! We can help clients with any financial information. Please call or email us with questions!
https://www.google.com/amp/s/www.forbes.com/sites/allbusiness/2020/04/04/cares-act-loans-small-business-support/amp/
FORBES.COM
Newly Available CARES Act Loans: 10 Things Small Businesses Need To Know
Utah has matched the federal tax deadline extension. Both federal and state taxes are now due by July 15th!
https://www.google.com/amp/s/www.deseret.com/platform/amp/utah/2020/3/24/21192556/utah-taxpayers-get-tax-day-extension-due-to-covid-19-outbreak-coronavirus-irs-tax-commission
DESERET.COM
Utah taxpayers to get Tax Day extension due to COVID-19 outbreak
We all needed some good news this week! Taxes are now due July 15th.
https://www.forbes.com/sites/kellyphillipserb/2020/03/20/tax-filing-deadline-extended-to-july-15/
FORBES.COM
Tax Filing Deadline Extended To July 15
Contact us for a link to our secure client portal. You can upload your tax documents and we will contact you with any questions. Let us give you one less thing to worry about!
This year’s winner came from our Facebook page- congrats to Jenna Brown Dias! You are the winner!!
A new tax bill was passed on December 21st. How does it affect you?
Second Round of Stimulus
More stimulus money will soon be hitting bank accounts across the US! The income limits are the same as last time and qualification for the stimulus will be based on the most recent tax return that you have filed. The biggest change is to the amounts. The first round of stimulus gave $1200 to each adult that claimed themselves and $500 to each dependent. The second round will give $600 to both adults and dependents.
The first stimulus was criticized for not including dependents over 16 years old. The second round is only slightly better, now allowing payments for dependents who are 17 years old on the last day of 2020. Any dependents older than that are out of luck for now. If those dependents qualify to claim themselves on the 2020 return, they will get the stimulus then.
The first round of funding was also criticized for not providing payments to families where either spouse had an ITIN instead of a SSN. This round will provide payments to families where at least one spouse has a SSN. Only the spouse with the SSN will get the payment but any dependents with a SSN will also get $600. It appears that this will retroactively apply to the first round of stimulus as well.
The money is expected to start going out before the end of December. If the IRS has your bank account information on file, you should get it in late December or early January. Those who are getting physical checks are expected to get them in late January or February.
PPP Loans
Many business owners took advantage of the PPP loan program that provided a forgivable loan to businesses that kept their employees through the pandemic. Up until this bill was passed, the IRS rules stated that the expenses paid by the PPP loan would not be deductible. This essentially made the PPP loan taxable to the business owner. The bill passed on Monday clarified that the expenses paid by the PPP loan are tax deductible and so no tax will be owed on any money received from PPP loans. Once forgiven, the loan will now be converted into equity, as though the owners of the business had contributed the money according to their ownership. PPP loan forgiveness for companies who received less than $150K has been streamlined.
Congress funded a second round of the PPP loan. To qualify for the second round, a business must have less than 300 employees and must be able to show a 25% decrease in revenue for a quarter in 2020 as compared to that same quarter in 2019. This is stricter than the first round that simply required economic uncertainty due to COVID-19. In order to be forgiven, the second round loans will need to be spent at least 60% on payroll and the remaining on other qualified expenses like rent and utilities. If you missed the first round of PPP loan funding, this is your chance to apply. If you think you qualify, we recommend reaching out to your bank to start the process.
Please keep in mind, this is a 5500 page tax bill that was passed yesterday so our understanding of all of the ramifications continues to evolve. We’ve provided this summary as a courtesy. Please call or email our office with questions before relying on any information included here.