Tax Changes and Stimulus Payments due to COVID-19
New information is coming at an alarming rate! Please contact your tax preparer if you have questions. We will be glad to help just give us a call at 870-642-5900. While 2019 tax returns for Federal and AR now have a July 15 deadline,2020 estimated tax payments have earlier deadlines.
The stimulus payments do NOT require that your 2019 tax return be filed. The payment is figured an adjusted gross income from 2019 if filed, 2018 if the 2019 return has not been filed, and, if it wasn’t necessary for a return to be filed, other government payments such as social security will be used. I am attaching some additional information that was provided to me.
Latest Arkansas COVID-19 Update from the AR Department of Health
Cotton Introduces Phase III Legislation to Surge Cash to American Families, Businesses
Washington, D.C. – Senator Cotton (R-Arkansas) introduced a series of bills today to combat the economic fallout from the coronavirus. The four bills each leverage existing government systems to surge cash to low- and middle-income Americans and struggling businesses. Summaries of the bills may be found below.
After introducing the bills, Senator Cotton released the following statement.
“Low and middle-income Americans need help now—not in weeks or months. By using existing government programs to surge cash to struggling families and businesses, we can get them that assistance now. My bills will help our nation weather this storm so that we can emerge stronger than ever on the other side.”
Coronavirus Economic Stimulus Act
Authorizes the Treasury Department to immediately cut a tax-rebate check of $1,000 for every adult tax filer making less than $100,000 per year and $500 for each claimed dependent. Married couples filing jointly that make less than $200,000 per year would be eligible for a $2,000 tax-rebate check.
Eligible filers would receive full rebate checks regardless of tax liability.
This would be a one-time payment. Treasury would use 2018 tax information to assess eligibility.
Coronavirus TANF Expansion Act
Provides Temporary Assistance for Needy Families (TANF) block grants to states that temporarily broaden eligibility standards so that their programs apply to any family with children under 18 whose income has been reduced due to coronavirus and that earned less than 400% FPL last year.
This new class of eligibility would receive a one-time payment of at least $500 and no more than $1,000 per dependent; states would have flexibility within that guidance.
Temporarily waives work requirements for eligibility in the interest of public health.
Coronavirus Unemployment Insurance Expansion Act
Provides block grants to states that expand eligibility to cover: 1) cases where an individual's employer temporarily ceases operations due to coronavirus, 2) cases where an individual is quarantined with the expectation of returning to work and is not receiving pay due to the coronavirus emergency, and 3) cases where an individual must stop receiving pay in order to care for family members or dependents due to the emergency.
Reimburses states for 100% of the costs of the expansion.
Temporarily suspends requirements to seek work in the interest of public health.
Expansion would last until December 31, 2020 or the termination of the national emergency, whichever comes first.
Coronavirus Credit Expansion Act
Increases the cap on small-business disaster loans from $2 million to $20 million dollars, and funds appropriately.
Grants low-interest loans to businesses immediately, with penalties for fraudulent claims being 3x the amount of the loan.
Centers for Disease Control - Coronavirus Disease
Coronavirus Disease 2019 (COVID-19)
Coronavirus disease 2019 (COVID-19) is a virus (more specifically, a coronavirus) identified as the cause of an outbreak of respiratory illness first detected in Wuhan, China.
null
null
U.S. Small Business Administration
The federal government has authorized $50 billion in disaster recovery loan funding to be administered by the U.S. Small Business Administration. First, Arkansas must show that small businesses have suffered substantial economic injury, before the governor can activate and access the program funding so loans can be offered. If your business has been affected by COVID-19, please complete this worksheet and return to Arkansas Division of Emergency Management at businesscovid19@adem.arkansas.gov. https://tinyurl.com/s59zdlx
null
null
Understanding the Coronavirus
Credo Reference: Understanding the Coronavirus
Highly contagious, the coronavirus has been declared a pandemic by the World Health Organization (WHO), and the impacts are widespread. Your Credo Collection features timely articles on this topic from The Conversation. We've gathered some key content for you that your users may find helpful for background in making sense of this outbreak.
Explainer: What's the difference between an outbreak and an epidemic?
What's the difference between pandemic, epidemic, and outbreak?
How big will the coronavirus epidemic be? An epidemiologist updates his concerns
Coronavirus: How big, how bad, and what to look out for
Coronavirus: Who is at risk and how do we know?
Social distancing: What it is and why it's the best tool we have to fight the coronavirus
Coronavirus: Ten questions about self-isolation answered
Crisis communication researcher shares 5 key principles that officials should use in coronavirus
Does screening travelers for disease and infection really work?
7 science-based strategies to cope with coronavirus anxiety