The government enacted the third Coronavirus relief package, also known as the Coronavirus Aid, Relief and Economic Security Act (CARES), on 27th March 2020. The act assists people in various capacities, including students, unemployed people, businesses, and healthcare providers. The act also provides some tax relief options for certain income groups.
Here are a few important things you should know about the CARES Act.
#1 Setting Up Your Tax Refund with A Direct Deposit Entitles You to A Stimulus Check
For single, employed individuals, who have a social security number and earn a gross income of $75000 or lower, the act provides a stimulus check of $1200. Married couples signing up for joint returns are also eligible for the check, provided their income is $150,000.
For married couples, the stimulus check will amount to $2400, although the exact amount will be determined by the IRS depending on your exact income. These eligibility criteria are also determined by your social security statement showing your income for years 2018 and 2019 and your latest tax returns.
#2 The Pay Check Protection Program Offers Relief to Small Business Owners Through Loans
The Pay Check Program allowed small businesses with 500 or fewer employees, tribal businesses, independent contractors, and gig economy workers to apply for partially or fully forgivable loans through the existing SBA lending program. Although the date for application for the program ended in May, companies can now apply for loan forgiveness instead.
#3 Expired Provisions of the CARES Act
The CARES Act provided benefits to various segments, including the employed, unemployed, and business owners. The act was set in motion through the law to provide economic relief and stimulus to the struggling economy during the pandemic. A few of the expired benefits of the act include:
- Federal Pandemic Unemployment Compensation
- Pandemic Unemployment Assistance
- Pandemic Emergency Unemployment Compensation
- Pay Check Protection Program
The relief packages mentioned above are no longer available. However, there are still tax-related benefits that you can enjoy as an American citizen under the current administration. To learn more about various tax benefits you can enjoy under CARES Act and subsequent economic packages, reach out to Lincoln Law Group. Our tax litigation and tax controversy lawyer can help you navigate your tax issues in Baltimore, Maryland. We also specialize in family law and divorce, and our personal injury attorney can help you deal with issues like car accidents.