California Agreement Covid Relief

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The governor and legislative leaders have agreed on a package which includes the following:
1. $600 in one-time relief to households receiving the California EITC for 2020
2. a four-fold increase – from $500 million to more than $2 billion – for grants up to $25,000 for small businesses impacted by the pandemic, and also allocates $50 million for cultural institutions.
3. The agreement also partially conforms California tax law to new federal tax treatment for loans provided through the Paycheck Protection Plan, allowing companies to deduct up to $150,000 in expenses covered by the PPP loan.

https://www.gov.ca.gov/2021/02/17/governor-newsom-legislative-leaders-announce-immediate-action-agreement-for-relief-to-californians-experiencing-pandemic-hardship/
#PPPConformity #CATaxes


IRS makes it easier to set up payment agreements; offers other relief to taxpayers struggling with tax debts

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The Internal Revenue Service today announced a number of changes designed to help struggling taxpayers impacted by COVID-19 more easily settle their tax debts with the IRS. 11/2/2020

#taxes #irs https://www.irs.gov/newsroom/irs-makes-it-easier-to-set-up-payment-agreements-offers-other-relief-to-taxpayers-struggling-with-tax-debts

EZ PPP loan forgiveness application released.

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EZ PPP loan forgiveness application released. https://content.sba.gov/sites/default/files/2020-06/PPP%20Forgiveness%20Application%203508EZ%20%28%20Revised%2006.16.2020%29.pdf?utm_medium=email&utm_source=govdelivery

The great news for self-employed individuals like myself is that it confirms that the full amount of the loan can be forgiven in that they allow to an a half months of “compensation” which is the maximum amount we could have applied for a loan:

“The dollar amount for which forgiveness is requested:

… if a 24-week Covered Period applies, does not exceed 2.5 months’ worth of 2019 compensation for any owner employee or self-employed individual/general partner, capped at $20,833 per individual”

#PPPLoanForgiveness