Pandemic Tax Changes

The administrative and legislative changes to address health and financial problems of the global coronavirus pandemic has led tax practitioners to spend more time figuring it all out than was needed for tax reform change of the Tax Cuts and Jobs Act! Of course, the timing of dealing with this right now is more significant than with the TCJA.

I won’t go through all of the changes since there are many other sources, such as the following:IRS Coronavirus website and lots of links;Treasury Department info for small businesses;SBA loan information;Dept. of Labor and required paid leave changes; AICPA Coronavirus Resource Page; AICPA State Tax Chart (very detailed and up-to-date).

A Few Observations:

What will people do with their 2020 recovery rebates (referred to as economic impact payment by the IRS)? Most individuals will get $1,200 tax free. A married couple will get $2,400. Parents with children under age 17 will get $500 per child. There are phase-outs based on income (using either 2018 or 2019 tax return info generally). The Washington Post has a nice online calculator to help you determine your rebate amount.
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