From a CPA's Perspective.....Let's Review..... Here's A High-Level Summary of Tax Provisions in the CARES Act (H.R. 748) and FFCRA (H.R. 6201).....

• General Provisions:
  The IRS extended the April 15, 2020 federal income tax filing and payment deadline to July 15, 2020. First quarter estimated tax payments usually due April 15, 2020 are now extended to July 15, 2020.
  
  Texas Franchise Tax Reports are now extended to July 15, 2020 to be consistent with the IRS.
• Coronavirus stimulus rebates:
  Individuals will receive a tax credit of $1,200 ($2,400 for joint filers) plus $500 for each qualifying child. The credit begins to phase out for taxpayers with adjusted gross income (AGI) above $150,000 for joint filers, $112,500 for heads of households and $75,000 for other individuals.  Payments are not taxable.
  
  Stimulus rebates are being treated as advance refunds of a 2020 tax credit. Taxpayers will reduce the amount of the credit available on their 2020 tax return by the amount of the advance refund they receive.  The credit is not available to nonresident aliens, individuals who can be claimed as a dependent by another taxpayer and estates and trusts.
• Payroll Tax Credit Refunds:
  Subject to limitations and exceptions, employers of less than 500 employees are required to provide mandatory sick time and paid family leave but are eligible for payroll tax credits to offset the costs. Eligible self-employed individuals also qualify for the credits. Healthcare providers and emergency responders are excluded; employers with fewer than 50 employees can be exempted.
  
  The paid leave is available for up to 10 weeks. The first 10 days of the leave may consist of unpaid leave or accrued paid time off. The amount paid per day is calculated based on the “two-thirds rule” discussed in H.R. 6201. The credit is generally available for up to $200 in wages for each day an employee receives qualified family leave wages. A maximum of $10,000 in wages per employee would be eligible for the credit.
  
  Two weeks of sick pay must be paid when the employee is unable to work for coronavirus-related reasons. The amount of the sick pay depends on many factors, with the maximum being $511 per day ($5,110 in total) or $200 per day ($2,000 in total) based on the exact reason the employee is unable to work.
• Employee Retention Credit:
  Eligible employers are allowed a credit against employment taxes equal to 50% of qualified wages (up to $10,000 in wages) for each employee.
• Retirement Plans:
  Taxpayers can take up to $100,000 in coronavirus-related distributions from retirement plans without being subject to the 10% additional tax for early distributions.  Eligible distributions can be taken up until Dec. 31, 2020.  The distributions may be repaid within three years and any resulting income inclusion can be taken over three years.
  
  If you were over 70 ½ at Dec. 31, 2019 you won’t have to take required minimum distributions (RMD) in 2020. If your retirement assets have taken a hit, not having to take an RMD may allow those assets to recover some value before you liquidate them.
• Student Loans:
  If you have a federally-held student loan, your payments will be suspended through Sept. 30, 2020 and interest won’t accrue during this period. Note that this relief does not apply to private student loans.
• Charitable Deductions:
  There is an above-the-line charitable deduction for 2020 (not to exceed $300).
  
  AGI limitations are modified for charitable contributions for 2020, to 100% of AGI for individuals and 25% of taxable income for corporations (increased from 10%).  The food contribution limits increase from 15% to 25%.
• Other Changes:
  Qualified improvement property:  A technical correction was made to the TCJA regarding qualified improvement property under Sec. 168 by making it 15-year property. These improvements can now be expensed immediately.
  
  Payroll tax payment is delayed by 50% for 2020 employer’s share of Social Security payroll taxes until Dec. 31, 2021 and the other 50% will be due Dec. 31, 2022. For self-employment taxes, 50% will not be due until same dates.
  
  The rules for high-deductible health plans (HDHPs) are amended to allow them to cover telehealth and other remote care services without charging a deductible.  Additional over-the-counter items now qualify.

Visit the IRS Coronavirus Tax Relief page for more details on coronavirus tax relief.  You may also want to visit the SBA's link to the Paycheck Protection Program intended to help businesses keep their workforce employed during the COVID-19 crisis.  Questions?  Email Us:  admin@tahu.org.