Simon Law - April 2020


april 2020

Good News From Congress in Tough Times

The U.S. Congress has passed a $2 trillion relief package for workers and businesses affected by the coronavirus. Here are four things to know about how this bill will impact you:

you won't get a check, so get the 2018 return in at least! This payment is written up as a refundable tax credit for 2020, so, yes, you eventually will pay taxes on it if you pay taxes at all. 2. If you get laid off Unemployment benefits in Georgia used to work like this: Your weekly benefit amount was calculated by combining your wages from the two highest quarters in your base period and that number was divided by 42. Your weekly benefit amount is subject to a weekly minimum of $44 and a maximum of $330. The coronavirus bill adds up to $600 a week to the state’s payment to bring workers’ payments up to what they were making. This new formulation will last for four months.

1. Qualifying for the Individual Check This will be based off of your 2018 or 2019 tax return. If you earned less than $75,000 as a single person in adjusted gross income (AGI), you get $1,200 by check. As a couple it's $150,000. You’ll also get $500 for each child you claim. If your AGI was between $75,000 and $99,000, your payment will be phased down, and then it disappears for those with incomes above that. Decide now which return would be better for you, and if you did not file one at all,

3. Student Loan payments suspended until October Interest rates will be lowered to 0% for two months, and borrowers can get a two- month deferral. The government has also stopped collection efforts for student loan borrowers in default. 4. Self-Employed and Small-Business Owners In addition to cheap and easy Small Business Administration loans to get us through, congress passed a deferral of the 6.2% payroll tax employers pay for the next two tax years. This is all about flattening the economic dip.

–Christopher Simon


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