Stimulus Legislation - What We Know
Updated: Jan 18, 2021
Accounting Firms are Waiting on Tax Guidelines
With the recently passed legislation, there are a number of stimulus related items that have been amended, changed and added.
Along with firms across the nation, we are waiting for formal guidelines from the SBA and United States Treasury.
We are monitoring the situation closely and when the guidelines are issued, you will receive communication from us through an email, on our blog, and posted to the front page of our website.
What We know Now:
The legislation became law on Dec. 27, 2020
New round of PPP:
Must have a 25% or more drop in revenue quarter over quarter comparison 2019 -2020.
We are running the reports for those clients affected and will reach out to them individually
Employee Retention Credit:
Extended to first 2 quarters of 2021.
Can now apply for ERC while having taken a PPP loan.
Must show 80% drop in revenue OR forced to shut down during 2020.
Babies/ Adoption 2020:
You MAY be eligible to claim stimulus phase 1 & 2.
Will happen on Form 1040 - Rebate Recovery Credit.
MUST have a SS# (copy of card must be uploaded to client portal) and we will claim the credit on the 2020 tax filing if AGI limitations are not met.
Charitable above line deduction for standard deduction filers.
Limit is $300 for all filers except MFS - each person will claim $150.
Must have been a cash/check donation.
Individual Stimulus
$600 / adult.
Will be received in the same manner as your previous stimulus payment
If you did NOT receive stimulus but should have:
TELL US before we prepare your tax return.
Rebate Recovery Credit is a new credit on the 2020 tax filing / Form 1040 to claim non-payment.
We will continue to monitor the situation and update our website and blog with new information as we receive it. Click here to view website updates.