How We Can Help You
Office Hours
As of 5:00p on March 25, 2020, pursuant to Governor’s orders for “nonessential” services, our office has ceased all in-person activities. We have retained a core staff and will continue to prepare taxes and communicate via email. If you need to reach us, we will have limited phone accessibility. We appreciate your patience as we attempt to operate at less than full capacity.
A locked drop box has arrived in our parking lot, to the left of our main entrance. This can be used 24/7 for dropping off tax return documentation for preparation or signed e-file authorization forms. It is emptied multiple times a day. We recommend placing your documents in a sealed envelope.
Completed Tax Returns
We will be sending completed tax returns, E-file authorization forms, and any necessary payment vouchers via email or secure portal, only with appropriate authorization. US Postal Service is also an option. When you receive notification that your return is complete, please let us know what method of delivery you prefer. With the July 15 extension, there is plenty of time to file and packets can always be picked up at a later date.
How the Government Can Help You
Small Businesses and Individuals
If you need to apply for any of the loans or programs listed, we’ve been told the application process is relatively easy. However, we are here to assist. We also have fact sheets available if you would like more detailed information.
Coronavirus Aid, Relief, and Economic Security (CARES) Act and Unemployment Benefits
Many employees are eligible for unemployment benefits if their employers are temporarily shut down due to government order. Employees may be partially eligible if hours are reduced. Check with your state labor department to see if you are eligible.
Pandemic Unemployment Assistance (PUA) allows self-employed individuals to collect unemployment based on reported prior earnings. Vermonters, you can sign up for the newsletter here: https://mailchi.mp/vermont/cares_selfemployed
PUA also allows for up to an additional $600 per week extra pay beginning March 29, 2020, not retroactive, to all claimants including self-employed individuals.
Extended benefits are available to claimants who have previously exhausted their benefits, or their benefit year has expired.
Resource: labor.vermont.gov
Small Business Loans
The Paycheck Protection Program is available through June 30, 2020. Small businesses (less than 500 employees) including sole-proprietors, independent contractors, and self-employed individuals qualify. Payments are deferred for 6 months. Collateral and personal guarantees are not needed and there are no fees. The loans carry a 2-year maturity and .5% interest. If the funds are used at least 75% for payroll costs, the loan will be fully forgiven, but funds may also be used for mortgage interest, rent, and utilities. Employers must maintain regular employment levels.
The Economic Injury Disaster Loans and Loan Advance is available to help small businesses meet financial obligations. This is a working capital loan up to $2 million with a loan advance of $10,000 that does not have to be repaid.
Resource: SBA.gov
Families First Coronavirus Response Act
This Act provides for up to 80 hours of sick leave paid at 100% of the eligible employee’s pay if that employee is unable to work due to Coronavirus-related reasons. Employers receive a tax credit for sick leave paid to such employees. Child Care Leave Credit provides a tax credit to employers at 2/3 an employee’s regular pay capped at $200/day or $10,000 total, for up to 10 weeks of leave. Additional credit is available if the employer maintains health insurance coverage during the leave period.
Employers with less than 50 employees may be exempt from the requirement to provide leave if doing so would jeopardize the viability of the business.
Resource: US Department of Labor Fact Sheet
Employee Retention Credit
This credit is not available to small businesses that take small business loans.
To qualify, a business must be 1) fully or partially suspended by government order, and 2) gross receipts fall below 50% of a comparable quarter’s receipts from 2019. A business no longer qualifies once gross receipts increase to 80% or more of a comparable quarter’s receipts in 2019.
The credit equals 50% of qualifying wages paid, up to $10,000 during the period March 12, 2020, through December 31, 2020. This includes the portion of employer-provided health care. Qualifying wages are defined as wages paid to all employees, up to 100. Or, if there are more than 100 employees, wages paid to employees who did not work during the calendar quarter.
The credit is received via Form 941 beginning with the 2nd quarter. If the credit exceeds the required payroll deposit or an advance of the credit is needed, form 7200 should be filed.
Resource: irs.gov
Economic Impact Payment (aka Stimulus)
The amount to be received is $1,200 per individual ($2,400 per married couple) plus $500 per qualifying child (age 16 or younger), based on adjusted gross income (AGI).
Individuals: AGI up to $75,000 receive the full amount. Phase-out applies up to AGI of $99,000.
Married Filing Joint: AGI up to $150,000 receive the full amount. Phase-out applies up to AGI of $198,000.
Head of Household: AGI up to $112,500 receive the full amount. Phase-out applies up to AGI of $136,500.
Resource: Stimulus Check Calculator
The IRS will be using either the 2018 or 2019 tax filings, whichever is on-file, to determine the amount of payment. Payments will be sent via direct deposit if the information is available from the most recent filing. If information is not available or has changed, we are told a portal is being developed in the next few weeks which may be used to update information.
The payment is an advance of a 2020 tax credit. If AGI falls into qualifying range during 2020, the credit may be applied to the 2020 tax return.
Other Items of Note
Filing season extension – All filings and payments ordinarily due on April 15, 2020 have been extended, penalty-free, until July 15, 2020. This includes allowable contributions to IRAs, SEP-IRAs, and Health Savings Accounts for the 2019 tax year. The June 15, 2020 deadline for 2nd quarter estimated tax payments has remained the same.
Installment agreements – All payments under existing agreements that would be due between April 1, 2020 and July 15, 2020 are suspended. Interest will continue to accrue on the unpaid balance, but no penalties will apply and the agreement will not default.
Federal student loan payments – All direct federal loan payments are suspended until September 30, 2020 with no accrual of interest. We recommend checking your online account for payment information to be sure this applies to your loan.
Required Minimum Distributions (RMDs) – All RMDs are suspended for the entirety of 2020.
Early retirement distributions – No 10% early distribution penalty will apply if the funds are withdrawn due to the outbreak.
Workplace retirement loans – The maximum allowable amount of loans taken from employer 401(k) plans, etc. may be doubled to $100,000.
Charitable contributions – Up to $300 in cash contributions may be deducted from gross income if taking the standard deduction for 2020. For those taking itemized deductions (on Schedule A), the adjusted gross income limitations will be lifted for cash contributions to public charities.
Mortgage/credit card payments – We recommend contacting your banks. Most are offering delayed payment assistance.