Do I have to pay tax on my stimulus payment?
No. The tax rebate is an advance payment of a special 2020 tax credit…so it is nontaxable.

I owe back taxes. Will my rebate be reduced?
No. IRS will not apply the stimulus payment to offset past-due taxes or other federal or state debt,
except for delinquent child support owed by a person.

My wife and I had a baby in Feb. Will we get an extra $500 tax rebate?
Yes, assuming you otherwise qualify…but not this year. On your 2020 return, which you will file next year, you will reconcile the rebate money that you received with your actual tax situation. If you otherwise qualify for the tax rebate break, you get an extra $500 refundable credit for your newborn on your 2020 Form 1040.

I just got my rebate. What if my 2020 AGI ends up being too high to qualify?
Do I have to repay the money?
No. Rebates generally don’t need to be repaid. For more on stimulus payments, see www.kiplinger.com/letterlinks/checks. It has answers to lots of queries and includes a description of two new IRS web tools: One is for people who would qualify for a stimulus payment but didn’t file a 1040 for 2018 or 2019 because their income was under the threshold amount to file a return. The other is for people to enter bank account information to get their rebates faster through direct deposit, and for individuals to check on the status of their payment.

I took a required minimum distribution from my traditional IRA in Feb.
Now that Congress has waived RMDs for 2020, can I put it back into the IRA?
Yes, and it will be treated as a tax-free rollover, provided you return the funds to the IRA by July 15, and you don’t violate the one-rollover-every-12-months rule. Normally, you have 60 days to do a tax-free rollover, but IRS extended the time period for rollovers otherwise due between April 1 and May 15 of this year to July 15. If you took an RMD in Jan., you’re out of luck…at least for now. You can’t redeposit the funds back into the IRA and treat it as a tax-free rollover. But tax practitioners tell us they expect the Revenue Service to issue guidance on the new RMD waiver, and that those rules may provide broad rollover relief.

My small business is applying for a Paycheck Protection Program loan.
If my firm gets the loan and it is forgiven, is the canceled debt taxable?
No. The stimulus law says that loan amounts forgiven under the PPP are nontaxable.

Are unemployment benefits taxable? Yes, for federal income tax purposes.
State taxation is a mixed bag. 33 states and D.C. fully tax the income. Ind. and Wis. tax them in part. Ala., Calif., Mont., N.J., Pa. and Va. don’t tax them. Alaska, Fla., Nev., N.H., S.D., Tenn., Texas, Wash. and Wyo. have no income tax.

New Paying and Filing Deadline - July 15th
The IRS, OR and the City of Portland have moved the filing and paying deadline from April 15th until July 15th. This included paying, filing, HSA & IRA contributions, 1st Quarter Estimates (IRS only) and other deadlines. Oregon and City of Portland have NOT changed 1st quarter estimate, it is still April 15th. Not all states are following exactly in line with the IRS. Please click the link to find out who is and who isn't. April 15th - New Deadlines

Unemployment, Self-Employed Relief & Portland Small Business Relief Fund
The CARES act was signed into law on March 27, 2020 and will expand Unemployment Insurance benefits. Link
In the near future, they will provide guidance to customers on the:

• Federal Pandemic Unemployment Compensation weekly benefit of $600
• Benefits for self-employed individuals, including those working in the "gig" economy
• Expansion of unemployment benefits for individuals whose benefits will soon expire
• Benefits for individuals unable to start new work because of the pandemic

The Portland Small Business Relief Fund will provide grants and no interest loans to support Portland small businesses experiencing hardships related to COVID-19. Link

Economic Impact Payment
Tax filers with adjusted gross income up to $75,000 for individuals and up to $150,000 for married couples filing joint returns will receive the full payment. For filers with income above those amounts, the payment amount is reduced by $5 for each $100 above the $75,000/$150,000 thresholds. Single filers with income exceeding $99,000 and $198,000 for joint filers with no children are not eligible.
Eligible taxpayers who filed tax returns for either 2019 or 2018 will automatically receive an economic impact payment of up to $1,200 for individuals or $2,400 for married couples. Parents also receive $500 for each qualifying child.
Economic impact payments: What you need to know

Employee Retention Credit 
 IRS: Employee Retention Credit available for many businesses financially impacted by COVID-19 Link

• The Treasury Department and the IRS launched the Employee Retention Credit, designed to encourage businesses to keep employees on their payroll. The refundable tax credit is 50% of up to $10,000 in wages paid by an eligible employer whose business has been financially impacted by COVID-19. 

FAQs: Employee Retention Credit under the CARES Act Link

• The Coronavirus Aid, Relief, and Economic Security Act (CARES Act), enacted on March 27, 2020, is designed to encourage Eligible Employers to keep employees on their payroll, despite experiencing economic hardship related to COVID-19, with an employee retention tax credit (Employee Retention Credit). 

 
Families First Coronavirus Response Act
 Treasury, IRS and Labor announce plan to implement Coronavirus-related paid leave for workers and tax credits for small and midsize businesses to swiftly recover the cost of providing Coronavirus-related leave Link

• The Families First Coronavirus Relief Act (FFCRA) requires certain employers to pay sick or family leave wages to employees who are unable to work or telework due to certain circumstances related to COVID-19. Employers are entitled to a refundable tax credit for the required leave paid, up to specified limits. [See FAQs]. The same wages cannot be counted for both credits. 

• Two sets of FAQs: 

1. FAQs from the U.S. Department of Labor, Wage and Hour Division: DOL Families First Coronavirus Response Act: Questions and Answers. Link
 2. FAQs from the IRS: COVID-19-Related Tax Credits for Required Paid Leave Provided by Small and Midsize Businesses FAQs Link
  
Employers 
 See FAQ #6 on this page: Link 

• Q6. Does the relief provided in the Notice apply to payroll or excise taxes? 

• A6.  No, under the Notice, normal filing, payment, and deposit due dates continue to apply to both payroll and excise taxes. (See exception in Notice 2020-22.)

Relief from Penalty for Failure to Deposit Employment Taxes 

• Notice 2020-22 provides a waiver of additions to tax for failure to make a deposit of taxes for employers required to pay qualified sick leave wages and qualified family leave wages mandated by the Families First Coronavirus Response Act (Families First Act) and qualified health plan expenses allocable to these wages.  

• This notice also provides a waiver of additions to tax for failure to make a deposit of taxes for certain employers subject to a full or partial closure order due to the coronavirus disease 2019 (COVID-19) or experiencing a statutorily specified decline in business under the Coronavirus Aid, Relief, and Economic Security Act (CARES Act).  

• Please see Notice 2020-22 for more details.

 
 Assistance For Businesses 
The SBA can help! Link
 Two SBA emergency capital programs are available today and more will be coming soon:

1. Low interest, long term Economic Injury Disaster Loans for up to $2 million: The first payment is deferred for 12 months. The application has been simplified and can be completed 100% online through our improved web portal at  www.sba.gov/disaster. 
2. Economic Injury Disaster Loan Advance for up to $10,000: The form to apply is part of the economic injury disaster loan application. If approved, these funds can be used for payroll and other operating expenses and will be forgiven. 

Soon the SBA and Treasury Department will launch the new Paycheck Protection Program to help keep employees on payroll and small businesses operating. Additional information about this program will be shared in the coming days. Link
 Find your local SBA office here. Link

Check IRS.gov for the latest information: No action needed by most people at this timeIR-2020-61, March 30, 2020
WASHINGTON — The Treasury Department and the Internal Revenue Service today announced that distribution of economic impact payments will begin in the next three weeks and will be distributed automatically, with no action required for most people. However, some seniors and others who typically do not file returns will need to submit a simple tax return to receive the stimulus payment.

Who is eligible for the economic impact payment?
Tax filers with adjusted gross income up to $75,000 for individuals and up to $150,000 for married couples filing joint returns will receive the full payment. For filers with income above those amounts, the payment amount is reduced by $5 for each $100 above the $75,000/$150,000 thresholds. Single filers with income exceeding $99,000 and $198,000 for joint filers with no children are not eligible.
Eligible taxpayers who filed tax returns for either 2019 or 2018 will automatically receive an economic impact payment of up to $1,200 for individuals or $2,400 for married couples. Parents also receive $500 for each qualifying child.

How will the IRS know where to send my payment?
The vast majority of people do not need to take any action. The IRS will calculate and automatically send the economic impact payment to those eligible.
For people who have already filed their 2019 tax returns, the IRS will use this information to calculate the payment amount. For those who have not yet filed their return for 2019, the IRS will use information from their 2018 tax filing to calculate the payment. The economic impact payment will be deposited directly into the same banking account reflected on the return filed.

The IRS does not have my direct deposit information. What can I do?
In the coming weeks, Treasury plans to develop a web-based portal for individuals to provide their banking information to the IRS online, so that individuals can receive payments immediately as opposed to checks in the mail.

I am not typically required to file a tax return. Can I still receive my payment?
Yes. People who typically do not file a tax return will need to file a simple tax return to receive an economic impact payment. Low-income taxpayers, senior citizens, Social Security recipients, some veterans and individuals with disabilities who are otherwise not required to file a tax return will not owe tax.

How can I file the tax return needed to receive my economic impact payment?
IRS.gov/coronavirus will soon provide information instructing people in these groups on how to file a 2019 tax return with simple, but necessary, information including their filing status, number of dependents and direct deposit bank account information.

I have not filed my tax return for 2018 or 2019. Can I still receive an economic impact payment?
Yes. The IRS urges anyone with a tax filing obligation who has not yet filed a tax return for 2018 or 2019 to file as soon as they can to receive an economic impact payment. Taxpayers should include direct deposit banking information on the return.

I need to file a tax return. How long are the economic impact payments available?
For those concerned about visiting a tax professional or local community organization in person to get help with a tax return, these economic impact payments will be available throughout the rest of 2020.
Where can I get more information?The IRS will post all key information on IRS.gov/coronavirus as soon as it becomes available.
​
The IRS has a reduced staff in many of its offices but remains committed to helping eligible individuals receive their payments expeditiously. Check for updated information on IRS.gov/coronavirus rather than calling IRS assistors who are helping process 2019 returns.