Many of you are aware of and watching the status of the next Coronavirus aid package that will provide $2 Trillion of aid. Both chambers of Congress have now approved the legislation. The bill now moves to President Trump where it is expected to be signed into law.
As this develops, we will keep you informed and want to share a highlight of two key items based upon the current bill as passed by Congress.
Stimulus Payments
Certainly one of the most covered aspects of the legislation is the delivery of economic stimulus payments. As an overview, individuals will receive an advanced refundable credit of $1,200 while couples filing a joint return will receive $2,400 plus $500 per child. The advance payment will be based upon the most recently filed tax return or other information available to the IRS.
The income thresholds for the payment are $75,000 per single tax filer, $150,000 per joint tax return, and $112,500 for heads of household. Income levels above this begin a phase out approach, which reaches full elimination at $99,0000 per single tax filer, $198,000 for joint tax filer, and $146,500 for heads of household.
Small Business Loan Program
Allocation of nearly $350 Billion to create a Paycheck Protection Program to assist companies, nonprofits, veterans groups, and others with less than 500 employees is anticipated to be a major part of the legislation. This program will provide forgivable loans to cover payroll, health care cost, rent, and other cost for an 8 week period. There are many considerations and mechanics to this program, and it appears to be a significant opportunity to assist “small” employers through these difficult times.
There are many more provisions that will provide a significant impact to the economy. We will share more information and highlight those programs in more updates to come.
As this bill advances and we develop additional information, we will keep you apprised of how we can support you, based upon your specific considerations with these opportunities. We are always available to assist you in the meantime.