March 25, 2020 | Blog
Details are still being drafted but the Senate has reportedly made a deal finalizing the most recent stimulus package.
The Coronavirus Aid, Relief, and Economic Security Act, CARES Act, provides loans and grants for struggling businesses (some of which are forgivable), significantly beefs up unemployment funding for those who have lost their job, supports the health care system, sends direct cash payments to taxpayers, and makes several changes to the tax code.
Some of the tax changes are retroactive, creating refund opportunities. The key tax provisions include:
Direct cash payments of $1,200 per person plus $500 per child start to phase out beginning at $75,000 for single filers and $150,000 for those married filing joint.
The $300 above the line deduction seems small but could help boost contributions to nonprofits who were already facing lower donations since the passing of 2017 tax reform and now even worse off with COVID-19.
More detailed coverage will be forthcoming, and this information is subject to change as Congress works out the details. Stay tuned to Tax News & Views for updates!
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