The Paycheck Protection Program (PPP) Increase Act of 2020 adds billions to the $2.2 trillion Coronavirus Aid, Relief, and Economic Security Act (CARES Act).
The CARES Act delivered good news to individuals and businesses, including meaningful tax relief. The recent addition of new funds brings more good news.
The tax relief offered by the CARES Act is over and above the tax relief offered by the earlier Families First Coronavirus Response Act (FFCRA).
The FFCRA requires small employers—those with fewer than 500 employees—to provide limited paid leave to employees who are affected by the coronavirus pandemic.
But those businesses can claim tax credits to cover the cost of mandatory leave payments. They also get federal payroll tax relief.
Finally, the IRS has graciously postponed some federal tax filing and payment deadlines. For the latest postponement, see COVID-19: IRS Dramatically Expands Tax Filing and Payment Relief.
All this COVID-19-related federal tax relief is helpful, but taking advantage of certain tax relief measures can conflict with eligibility for certain other federal relief measures that might be more valuable.
So, in many cases, you have choices and must be selective about which items you choose from the COVID-19 tax relief buffet. On the other hand, you can take advantage of some tax relief measures with no downside.
This article summarizes what we think are the most important COVID-19-related tax relief measures. We hope this will help you make smart selections from the COVID-19 tax relief buffet. ... Log in to view full article.