Last night, the U.S. Senate and White House agreed to a $2 trillion coronavirus stimulus bill. While the details of the bill are still in the works, Wallstreet responded positively. It is anticipated the House will vote on the Bill later this week. Even though the full impacts of COVID-19 are also still unknown, businesses, employees and investors can rest a little easier knowing help is on the way.
2019 Federal Tax Filing & Payments Extended to July 15th, 2020
According to IR-2020-58, an Internal Revenue Service’s New Release, the new 2019 Tax Filing & Payment deadlines have been extended to July 15th, 2020 regardless of the amount owed and without interest or penalties. The extension applies to all taxpayers, including individuals, trusts and estates, corporations and other non-corporate tax filers, including those who pay self-employment tax. As it stands now, the IRS is still processing tax returns and is estimating a 21-day process time. So, if you’re due a refund, don’t wait, go ahead and file!
2019 IRA & HSA Contributions ALSO Extended to July 15th, 2020
Under normal circumstances, contributions can be made to an IRA for the prior year “by the due date for filing your return for that year” per IRS Publication 590-A. Due to the extension of the filing deadline, IRA contributions for 2019 are also extended. The same goes for your HSA contributions, per IRS Publication 969. The IRS officially confirmed these contribution extensions in the Q&A section of IRS Notice 2020-18.
Relief to Employees and Small to Mid-Size Businesses
On March 18th, 2020 President Trump signed into law the Families First Coronavirus Response Act. This act is designed to “combat and defeat COVID-19 by giving American businesses with fewer than 500 employees funds to provide employees with paid leave, either for the employee’s own health needs or to care for family members.” With refundable payroll tax credits, employers will be quickly and fully reimbursed dollar-for-dollar for paid leave (up to 80 hours) given to employees related to Coronavirus. “Businesses with fewer than 50 employees are eligible for an exemption from the requirements to provide leave to care for a child whose school is closed, or childcare is unavailable in cases where the viability of the business is threatened.” IR-2020-57
Bridge Loans Available to Florida Small Businesses
On March 16th Florida Governor Ron Desantis made funds available with the Florida Small Business Emergency Bridge Loan Program for small businesses (2 – 100 employees) impacted by COVID-19. The loan program will provide up to $50,000 in short-term, interest-free funds to small businesses economically impacted by COVID-19. Visit https://floridasbdc.org/disaster/ for more information on this and other programs available to small businesses.
As always, the team at CPS Investment Advisors is here to help. If you have questions or concerns, please don’t hesitate to reach out to us. We are fully operational and available during normal business hours while applying social distancing best practices for everyone’s safety.
Shawn J McCabe | MBA, CFP®