Fast Facts for March 31, 2021
If you are a small business owner struggling to make payroll or your rent — you now have two more months to apply for the paycheck protection program.
The president just signed the bill into law yesterday. It extends the deadline for small business owners to apply for a PPP loan from March 31 to May 31. It also gives the SBA until June 30th to approve and process loans still in the cue.
The paycheck protection program is a pandemic related loan from that – if used properly – may become fully forgivable through the federal government.
Through the recent stimulus packages lawmakers have allowed certain business owners to draw from the program twice.
According to the SBA almost 9 million PPP loans have been approved to help small business owners. The vast majority were for loans under $50,000 dollars and the biggest group of loans went to struggling restaurant owners.
When signing the bill into law – the President said there’s still money in the PPP loan pot — so qualified small business owners should apply. To get more information, check out sba.gov click on relief options then PPP loans.
More info on PPP Loan: https://www.sba.gov/funding-programs/loans/covid-19-relief-options/paycheck-protection-program
PLUS
Did you already pay taxes on your unemployment benefit??
Well, I just got some information from the IRS you’ll want to hear.
Bottom line…if you want to take advantage of the 10-200 of tax free unemployment — do nothing! The IRS will recalculate your return for you and will start refunding your money in May and will continue the refunds through the summer.
Under the American Rescue stimulus plan passed earlier this month – the first $10,200 of your unemployment benefit is tax free if you file single and $20,400 if you file joint married and have a modified adjusted gross income less than $150,000 dollars. This tax free benefit is only for the year 2020.
If you qualify, the IRS says it will recalculate the return you’ve already sent in and if there’s an overpayment you’ll either get a refund or the excess money will be applied to your outstanding tax debts.
The IRS will do these calculations in two phases. Single tax filers who are eligible will be in phase one and qualified joint married filers and those with more complicated returns will be in phase two.
The IRS says there is *no* need for you to file an amended return unless – the new calculation of your return makes you eligible for additional federal credits like the earned income tax credit.
You can read more about this on irs.gov
PLUS
We now know exactly what President Biden’s recovery infrastructure stimulus plan entails…and its big.
Like more than 2.2 trillion dollars over the next eight years, big.
The first piece –the president proposed a jobs plan… because he says tons of workers will be needed to accomplish it.
We’re talking modernizing tens of thousands of miles of highways, roads, main streets, and bridges, modernizing public transit, improving airports, replacing lead pipes used for drinking water, building affordable, reliable high-speed broadband, modernizing public schools, and making investments to reduce climate change, creating jobs for essential home care workers, revitalize manufacturing & training Americans for the jobs of the future.
The second piece – is how to pay for it – Biden proposed the American Tax Plan.
The key element — reverse the 2017 trump tax cuts for corporations – bringing the rate back to 28% from 21%, ensuring companies pay at least some taxes by imposing a 15% minimum tax on income and taxing foreign income of large global corporations and discourage them from shipping jobs overseas.
Already – there is a ton of push back from republicans and even the u-s chamber of commerce. This is just a proposal and it’s not happening overnight. It’ll take months to negotiate.
