Senate Passes 2 Trillion Dollar “Coronavirus Aid, Relief, and Economic Security Act’’ or ‘‘CARES Act’

CARES Act

      By now you have probably heard the Senate has passed the 2 Trillion Dollar ‘Coronavirus Aid, Relief, and Economic Security Act’’ or the ‘‘CARES Act’’ last night. The next step is for the House of Representatives to vote on the CARES Act tomorrow morning, March 27, 2020. The complete text of the Act can be read by clicking HERE. It is 880 pages long.

     Please consult your tax adviser regarding the details of the CARES Act and how the parameters may affect you or your business. This information should not be considered as tax advice but rather a reporting of current events. The summary is not exhaustive of all parameters in the CARES Act and the parameters in the Senate version of the CARES Act could be modified at anytime by Congress. The House of Representatives has yet to vote and passage would require the President of the United States to sign the CARES Act into law.

Summary of CARES Act

Unemployment insurance provisions

  • an additional $600 per week payment to each recipient for up to four months
    extend 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.
  • the federal government will extend unemployment benefits for an additional 13 weeks up to 12/31/2020 after a state’s unemployment insurance benefits end.

Recovery Rebates

  • Recovery rebates will use 2019 tax returns (2018 if the taxpayer has not filed in 2019) to determine the advanced rebate amount.
  • Recovery rebates will be reconciled based on 2020 income.
    • taxpayers who receive a smaller rebate than they are eligible for based on 2020 income will receive the difference after filing a 2020 tax return.
    • over-payments of rebates due to a higher income in 2020 will not be required to be given back or “clawed back.”
  • First, meet the threshold to receive rebates – maximum income of $75,000 for singles, $112,500 for heads of household, and $150,000 for joint taxpayers at 5 percent per dollar of qualified income, or $50 per $1,000 earned.
    • $1,200 refundable tax credit for individuals.
    • $2,400 for joint taxpayers.
    • $500 for each child a taxpayer may have in the household.
    • rebates not counted as taxable income for recipients, as the rebate is a credit against tax liability and is refundable for taxpayers with no tax liability to offset.
  • No rebates for those making $99,000 or more for single taxpayers with no children and $198,000 or more for joint taxpayers with no children.
  • Taxpayers who qualify for a higher recovery rebate based on 2020 income will receive it during the 2020 tax season.
  • Additional recovery rebates may be considered by Congress should the economic downturn continue or be prolonged for a longer period.

Employer Eligibility for Tax Credits

  • Employers are eligible for a 50 percent refundable payroll tax credit on wages paid up to $10,000 during the crisis.
    • credits 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 – compared to last year’s quarter for the same period.
    • credits can be claimed for employees who are retained but not currently working due to the crisis for firms with more than 100 employees.
    • credits can be claimed for employees who are retained but not currently working due to the crisis for all employee wages for firms with 100 or fewer employees.

Employer Payments Towards 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.
  • Employer payments of student loans would be excluded from an employee’s income.

Report Suspected Violations

      Please remember Orange County Mayor Demings has issued an Executive Order mandating residents “Stay-At-Home” effective Thursday, March 26, 2020 at 11pm until April 9, 2020 at 11pm. This was done in an effort to limit and potentially stop the spread of Covid-19 coronavirus. Only essential businesses and their employees are permitted to leave home. Stay healthy, stay safe, and check on your elderly parents, family members, and neighbors during this time.

     If you believe your employer is unlawfully requiring you to report for work, then please call the Orange County Sheriff’s Office to report the possible violation by calling (407) 836-4357.

 
#coronavirus #covid19 #orlando #florida #votebillmoore #vote2020
Economic Recovery Task Force Meets May 6th

Economic Recovery Task Force Meets May 6th

The  Orange County Economic Recovery Task Force meeting will be held tomorrow, May 6th, at 2:00 PM. The Economic Recovery Work Groups have also been meeting over the past few weeks discussing how to re-open businesses in Orange County.

Same ‘Ole Strings

Same ‘Ole Strings

Commissioner Uribe seeking campaign contributions from developers, investors, and big-business. Bill Moore is committed to serving Orange County residents. Bill refuses to let big-business and lobbyists control his mission of improving our communities.

Election Day 11/3/2020

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District 3 Map - Zoom Capability

If you are wondering whether or not you reside within District 3, please click on the image above. 

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