Governor Whitmer has signed the executive order to extend the 2019 tax filing/payment deadline to July 15; this is now the same as the federal filing deadline. She also extended the due date of city filings by three months.
The CARES Act was signed by President Trump on Friday to provide Americans economic relief. The 880-page bill included a lot of information, but some highlighted points include:
- Tax-free stimulus payments to individuals meeting certain income criteria. Couples earning up to $150,000 will receive $2,400 plus an additional $500 per child. Individuals earning up to $75,000 will receive $1,200 plus an additional $500 per child. This will be based on your 2019 adjusted gross income; unless you haven’t filed yet, then they will look at 2018. If tax years 2018 & 2019 made you ineligible, but then your income decreases in 2020, you could benefit when you file your 2020 tax return. Payments are expected to go out in the next three weeks.
- Unemployment benefits have been extended. Eligible workers will get an extra $600 per week on top of their state benefits. Self-employed and part-time workers are now eligible for benefits & the extra $600. Self-employed benefits will be based on the previous year tax filing in most cases. The benefit period has been extended from 26 to 39 weeks. A schedule has been released on michigan.gov/uia on what day you should file based on your last name.
- There are many loans & grants available for small businesses. Visit sba.gov to view options for your business.
- Employee Retention Credit is available for employers who continue paying employees while their business has been fully or partially suspended. To be eligible, the business would have to experience a reduction of 50% in quarterly receipts measured against the same quarter last year. The credit applies against the employer’s share of social security tax and is capped at $10,000 per employee.
- Family First Coronavirus-Related Mandatory Paid Leave requires employers to provide up to 80 hours of paid leave due to COVID-19 or self-quarantine while seeking a medical diagnosis. The employer will get “paid back” with a credit against their payroll taxes. This is also available for those having to care for a family member or a child whose school or daycare is closed (up to $200/day).
- For the calendar year 2020, no one will have to take a required minimum distribution from any retirement account.
- Charitable donations up to $300 are now an “above-the-line” deduction, which means you won’t have to itemize to take advantage of this at tax time.
Our employees are now working remotely to comply with Governor Whitmer’s “Stay Home, Stay Safe” Executive Order. Email is the best way to communicate with us during this time. We will continue working for our clients, whether it’s filing your taxes or keeping your current on any new economic development.
Thank you all for voting us Grand Haven’s People’s Choice Best Tax Preparer.
Stay safe, everyone!
Abby Selby, CPA