• Recovery Rebates: The bill would provide a $1,200 refundable tax credit for individuals and $2,400 for joint taxpayers. Additionally, taxpayers with children will receive a flat $500 for each child. It will be based on the 2018 return unless the 2019 return has been filed. Amounts are reduced for higher income taxpayers and begin phasing out after a single taxpayer has $75,000 in adjusted gross income and $150,000 for joint filers.
• Extra Unemployment Payments: The bill makes major changes to unemployment assistance, increasing the benefits and broadening who is eligible. The updated CARES Act includes an additional $600 per week payment to each recipient for up to four months, and extends Unemployment Insurance benefits to self-employed workers, independent contractors, and those with limited work history. The federal government will provide temporary full funding of the first week of regular unemployment for states with no waiting period and extend UI benefits for an additional 13 weeks through December 31, 2020 after state UI benefits end.
• Early Withdrawal Penalty Waived: Waives the 10 percent early withdrawal penalty on retirement account distributions for taxpayers facing virus-related challenges. Withdrawn amounts are taxable over three years, but taxpayers can recontribute the withdrawn funds into their retirement accounts for three years without affecting retirement account caps. Eligible retirement accounts include individual retirement accounts (IRAs), 401Ks and other qualified trusts, certain deferred compensation plans, and qualified annuities. The bill also waives required minimum distribution rules for certain retirement plans in calendar year 2020.
• Charitable Contributions: Creates a $300 partial above-the-line charitable contribution for filers taking the standard deduction and expands the limit on charitable contributions for itemizers.
• Student Loans: Certain employer payments of student loans on behalf of employees are excluded from taxable income. Employers may contribute up to $5,250 annually toward student loans, and the payments would be excluded from an employee’s income both tax free and payroll tax free.  
• Insurance coverage: The bill requires all private insurance plans to cover COVID-19 treatments and vaccine and makes all coronavirus tests free.

• Payroll Tax Credit: Employers are eligible for a 50 percent refundable payroll tax credit on wages paid up to $10,000 during the crisis. The credit would be available to employers whose businesses were disrupted due to virus shutdowns and those that had a decrease in gross receipts of 50 percent or more when compared to the same quarter last year. The credit can be claimed for employees who are retained but not currently working due to the crisis for firms with more than 100 employees, and for all employee wages for firms with 100 or fewer employees. The credit is provided for the first $10,000 of compensation, including health benefits, paid to an eligible employee. The credit is provided for wages paid or incurred from March 13, 2020 through December 31, 2020.
• Delayed SS Payment: Employer-side Social Security payroll tax payments may be delayed until January 1, 2021, with 50 percent owed on December 31, 2021 and the other half owed on December 31, 2022. The Social Security Trust Fund will be backfilled by general revenue in the interim period.
• Limit on $500,000 pass through business losses is suspended.
• Business interest limit is now 50% adjustable taxable income instead of 30%.
• Qualified leasehold improvement property is 15 years and eligible for bonus. 
• Net operating loss carrybacks are allowed for 2018, 2019, and 2020 and can be carried back 5 years. 

• Forgiveness for Small Business Loans for Keeping Employees: The bill creates a “paycheck protection program” for small employers, self-employed individuals, and “gig economy” workers, with $350 billion to help prevent workers from losing their jobs and small businesses from going under due to economic losses caused by the COVID-19 pandemic. The “Paycheck Protection Program” would provide 8 weeks of cash-flow assistance through 100 percent federally guaranteed loans to small employers who maintain their payroll during this emergency. If the employer maintains payroll, the portion of the loans used for covered payroll costs, interest on mortgage obligations, rent, and utilities would be forgiven.

• We strongly encourage both individuals and businesses to continue to file their 2019 return as soon as possible.
• Individuals who have been laid off due to COVID 19 should file for unemployment as soon as possible. Because of the high-volume of filings currently, you may experience difficulty when applying online. Try visiting the site during off hours, including early mornings or evenings.
• For businesses, we strongly encourage you to reach out to your lenders now as we anticipate there will be significant demand for the forgivable SBA loans. In the event that you would like a referral to a local bank that will be supporting this program, please let us know and we are happy to provide an introduction.