New information is becoming available multiple times per day and we are committed to getting it to you as quickly and clearly as possible.
The CARES Act was passed by the Senate last night and hopefully it will be approved as is by the House today or tomorrow.
- $1,200 for single individuals that make less than $75,000/year (payment will be phased out between $75,000 up to $99,000)
- $1,200 for head of household filers that make less than $112,500 (payment will be phased out between $112,500 up to $136,500)
- $2,400 for married couples that make less than $150,000/year (payment will be phased out between $150,000 up to $198,000
- For dependents, age 16 and under, the payment would be an additional $500 per child
What year is the income based on?
The income is based on your Adjusted Gross Income on your 2019 return (2019 Form 1040, line 8 b) If you have not prepared your 2019 return, the IRS will use your 2018 return (2018 Form 1040, line 7).
For retirees that receive Social Security or individuals on disability income only and are not required to file a tax return, the IRS will use their 1099-SSA form to verify their income. Unemployed individuals and veterans are also eligible to receive the payment.
How do I receive the money?
You do not need to apply or contact the IRS to receive this payment. The IRS will be sending the money to direct deposit to your bank account as filed on your most recent tax return or by check if your refund was issued via check.
When will I receive the payment?
You can expect the payment within three weeks.
Federal Pandemic Unemployment Benefits:
Under the current bill, in addition to state unemployment, eligible workers will receive an extra $600 per week.
Who is eligible?
Unemployed, partially employed and self-employed individuals would be eligible for this federal pandemic unemployment assistance. This is new as self-employed and 1099 contractors were not eligible for unemployment previously. The amount for self-employed individuals will be based on a formula.
Click Here for details. Self-employed individuals are newly eligible to receive state unemployment as well.
If you were about to start a new job or were recently hired and did not have sufficient work history, you are still eligible. If you quit your job as a result of the coronavirus, you would only be covered if you had to quarantine based on a health care provider or because you are a primary caregiver with a child whose school is closed you are covered.
Who is not eligible?
If you quit your job because you have a fear contracting the coronavirus, then you will not be eligible. If your employer shut down because they are not an "essential business" then you will be covered.
CLICK HERE for a list of essential business for Palm Beach, Broward and Dade Counties.
If you are receiving paid sick leave or family leave, or you are able to work from home, you are not eligible.
How long will payments last?
The additional Federal Pandemic payments will last for four months until July 31st.
Florida is giving an additional 13 weeks, so eligible inividuals will be able to collect state unemployment for up to 39 weeks. If your state unemployment recently ran out, you can sign up for an additional 13 weeks.
How to Apply?
Details to follow on how to receive the Federal Pandemic Unemployment payments.
Thank you for your trust and confidence in our firm. We are here to support you during these challenging and uncertain times. Stay healthy & safe!
The first payment for 1040-ES payment for 2020 is has been delayed and is now due on October 15th 2020 (typically the estimated tax payments are due 4/15, 6/15, 9/15 and 1/15).