Hello Tax Stars! ! ! !
The second round of stimulus payments are arriving. The Department Of the Treasury has already begun the delivery process of direct deposit. Some of you may have already gotten yours. The decided amount was $600 per adult, $1200 for couples, and $600 for dependent children. For more information, visit the IRS new release here.
Congress is still deliberating on the stimulus increase to $2,000 per person. Here is what is included in the new Stimulus Bill:
Direct Payments to individuals. ($600)
Unemployment - The jobless will receive a $300 weekly federal enhancement in benefits through March 14.
Unemployment for the self-employed - A federally funded $100 per week additional benefit to those who have at least $5,000 in annual self-employment income but are disqualified from receiving Pandemic Unemployment Assistance because they are eligible for regular state unemployment benefits.
Small business loans - The package reopens the Paycheck Protection Program so that some of the hardest-hit small businesses can apply for a second loan. The second loans will be limited to those with fewer than 300 employees that have seen drops of at least 25% of their revenue during the first, second or third quarter of 2020. It also reduces the amount a borrower can receive from $10 million to $2 million, gives businesses more flexibility on how they spend the money and simplifies the forgiveness process for loans under $150,000.Charitable nonprofits may qualify for an additional PPP loan (Second Draw) of up to $2 million if they meet the qualifications.
2nd Chance EIDL - https://www.withum.com/resources/congress-gives-small-business-owners-a-second-chance-at-an-eidl-advance/
Grants for theaters and other live venues - The package creates a $15 billion grant program for live venues, theaters and museum operators that have lost at least 25% of their revenues. The initial grant can total up to $10 million per eligible business. A second grant, worth half the amount of the first, may also be available.
Rental assistance - It extends until January 31 the eviction protection set to expire at the end of the year. It also provides $25 billion in rental assistance for individuals who lost their sources of income during the pandemic.
Nutrition assistance - The package raises SNAP benefits (Food Stamps) by 15% for six months but does not expand eligibility. This is more generous than the original bipartisan agreement from earlier in December, which called for a four-month increase. It also expands the Pandemic-EBT program to families with children under age 6 who receive food stamps, deeming them "enrolled" in child care and eligible for benefits. The package sends$400 million to food banks and food pantries through The Emergency Food Assistance Program.
Schools and Child Care funding - It provides $82 billion in aid for K-12 schools and colleges. Earlier proposals from Republicans and Democrats called for at least $100 billion in aid for schools. An additional $10 billion is included to support child care providers that have struggled because of the pandemic.
Payroll tax repayment -Employers who are deferring their workers' payroll taxes under Trump's executive action from August now have until the end of 2021 to increase their employees' withholding to pay back the taxes owed. Originally, the deferred amount had to be repaid by April 30. (Employees who have employers participating in payroll tax deferment, should have consulted with their tax professional to help offset the repayment.)
Funding for broadband - $7 billion for expanding access to high-speed internet connections, nearly half of which will go toward helping cover the cost of monthly internet bills by providing up to $50 per month to low-income families. The deal also sets aside $300 million for building out infrastructure in underserved rural areas and $1 billion in grants for tribal broadband programs.
Support for climate measures- includes new legislation to regulate hydrofluorocarbons, the powerful greenhouse gases common in air-conditioners and refrigerators. It also allocates $35 billion to fund wind, solar and other clean energy projects.
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