<p>It is a credit against the tax for the taxable year 2020.</p><p>The amount of credit is: $1,200 for single or $2,400 married filing joint return + $500 per qualifying child </p><p>Phase out: starts $75k for single, $112,500 head of household, $150k joint return </p><p>Phase out 5% of the AGI above thresholds.</p><p><strong>Example 1</strong>: Mr. A and Mrs. A file a joint return in 2018 and 2019. They receive W-2 income. In 2019, their adjusted gross income is $110,000. They will get immediately $2,400 as a tax credit. Later when they file their 2020 tax return (April 2021) they will pay their tax as computed for the fiscal year. </p><p><strong>Example 2</strong>: Mr. Z is single and pay tax every year. In 2019 his adjusted gross income is $70,000. He will receive $1,200 as a credit against 2020 tax.</p><p>All individuals with SSN are concerned except non resident aliens, estate and trust </p><p>The credit is automatically sent on bank account on file after 1/1/2018.</p><p>Taxpayers will receive a notice from the Secretary within 15 days of the payment</p><p>The condition is to have filed a tax return in 2018. If not, you can file 2019 ASAP in order to receive the credit on your bank account. </p><ul class="ee-ul"><li><u>Individual Retirement Plan</u></li></ul><p>IRC Section 401(a)(9): Annuity contracts subject to minimum distribution rules, the CARES Act changes the distribution rules for 2020</p><ul class="ee-ul"><li><u>Charitable contribution $300 allowed "above the line"</u></li></ul><p>Also, corporations will be allowed to deduct 2020 charitable contribution 2020 deductible up to the maximum of 25% of taxable income over the amount of all other charitable contributions allowed</p><ul class="ee-ul"><li><u>Employee Retention Credit for Employers subject to Closure due to COVID-19</u></li></ul> <p>Credit employment tax 50% of qualified wages. Qualified wages for quarter for any employee not to exceed $10,000</p><p>The excess credit is refundable. The credit applies for the period beginning after 12/31/2019.</p><p>Eligible employers: engaged in trade or business in 2020 and is fully or partially suspended activity due to the virus + significant decline in gross receipt ie less than 50% for the same calendar quarter in the prior year.</p><p>Health expenses included in qualified wages.</p><ul class="ee-ul"> <li><u>Limitation business interest Section 163(j) for 2019 and 2020 limit 50% of adjusted taxable income</u></li></ul><ul class="ee-ul"><li><u>Credit Protection during the Pandemic</u></li></ul><p>When the creditor makes am accusation with respect to 1 or more payments on a credit obligation or account of a consumer and the consul er respects the terms of the accommodation, the creditor report the credit obligation or account as current </p><ul class="ee-ul"><li><u>Mortgage loan</u></li></ul><p>Borrower can request for forbearance of foreclosure up to 180 days no additional fees, no penalties, or interests. Borrower must show financial hardship. Ask your lender.</p><p>Foreclosure moratorium: related eviction delayed at least 60 days starting March 18, 2020</p><ul class="ee-ul"><li><u>Miscellaneous</u></li></ul><p>New qualified medical expenses</p><ul class="ee-ul"><li><u></u></li></ul><p>Long time overdue, the federal government allows taxpayer to deduct expenses related to Menstrual care products (naming <em>tampon, pad, liner, cup, sponge, or similar product used by individuals with respect to menstruation or other genital-tract secretions)</em></p>
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