The first installment of our 3-part series on Coronavirus relief and how it affects individuals and businesses addressed government stimulus and relief packages in 2020 and 2021. The second part of the series offered advice for our clients on compliance with program rules and tax laws.

In this final post, we’ll take a look ahead at what you can expect for the remainder of 2021 when it comes to unemployment benefits, stimulus, and relief packages for individuals and small businesses.

Personal Income Tax Planning

Today (May 17, 2021) is the new tax day!

If you took our advice in part one of this series, you filed an extension on April 15 to ensure that you wouldn’t face penalties for taking advantage of the extended May 17 2020 tax filing deadline. If you didn’t, that extended deadline is fast-approaching. Contact your tax preparer if you have questions, need to file an extension, or need help with IRS communications.

If you haven’t filed or filed an extension, do so today to avoid additional penalties and interest charges! If you filed an extension, businesses have until September 15 and individuals have until October 15 to file a return. Please contact us today should you need help with any of the filing requirements for federal and state.  

Unemployment Program Changes

Unemployment corrections are happening now. If you filed early, the IRS will amend your return. If you haven’t filed yet, the income from unemployment will not be taxed on your return.

New Stimulus and Child Tax Credit Payments

Another stimulus payment may be in the near future. We will keep you posted on final decisions as they occur. State stimulus payments may depend on the state you live in, while the federal government is also in conversation about a third payment of up to $1,400 per individual. Meanwhile, enhanced child tax credit payments of up to $300 will start rolling out July 15.

PPP and EIDL Programs and Grants

PPP funding may be gone, but the SBA is accepting applications for rounds 1 and 2 of funds for PPP forgiveness. Depending on your bank, you need to file the applications for forgiveness within 10 months of the last day of coverage (8-24 weeks of funding).

Additionally, EIDL loans will become payable to those who received funding after 18 months from the initial payout. Note that any advance payments ($1,000 per employee) should be forgiven and not required to be paid back as part of the EIDL loan, per the SBA. Still have questions? Check out the SBA’s EIDL Frequently Asked Questions page or contact us for more information.

Ask BSquared Specific Questions About Your Situation

Every taxpayer and business owner faces a unique set of circumstances that could impact finances and tax burdens, as well as Coronavirus stimulus and relief payment compliance, for years to come. Contact us today to walk through what your record-keeping and planning process needs to look like for the rest of this year and 2022. With a plan in place to protect your assets and financial solvency, you’ll be multiple steps ahead and set up for success no matter what the rest of this challenging decade has in store.