Manuel DaRosa, CPA
Accounting and Tax firm with offices in Taunton, Falmouth and Mansfield, MA
NEWSLETTERS

More $1,400 stimulus checks sent. Here's who's getting them.


More people got 'plus-up' payments in the past two weeks after filing their tax returns.

Nearly 2 million more stimulus payments from the passage of the American Rescue Plan COVID relief bill in March went out in the past two weeks. They include almost 1 million "plus-up" payments, the IRS said Wednesday.

Approximately 167 million stimulus payments worth more than $391 billion have now been distributed, according to the IRS, with more expected to go out in the coming weeks now that the tax filing deadline of May 17 has come and gone.

Americans who made up to $75,000 in 2020 will get the maximum $1,400 check under the American Rescue Plan. Couples who file taxes jointly and made up to $150,000 will get $2,800. The amount received decreases to zero for individuals who made up to $80,000 and couples who earned $160,000. There's a $1,400 kicker for each dependent in the household.

The 1.8 million payments announced Wednesday mark the most recent batches of checks to go out since the bill was signed by President Joe Biden on March 11. The IRS said these batches included more than 900,000 payments for those people whom the agency did not previously have information on in order to deliver the money.

There are also more than 900,000 "plus-up" payments worth more than $1.6 billion in these recent batches, the IRS said.

Can I get more money from a plus up payment?


These recipients may not initially have been eligible to receive the stimulus checks based on their 2019 tax returns because they made too much income. But they are eligible now because they lost income in 2020. Now that they filed their 2020 returns to report this income loss, or if they added a dependent, they are now eligible.

About 900,000 payments were deposited directly into bank accounts. The rest went out by mail as paper checks.

The IRS reminds those who have yet to receive a stimulus payment, but don't normally file their taxes, that they need to submit a 2020 tax return to get their check and any tax credits they may be eligible for.

Tax Alerts
Tax Briefing(s)

COVID-19 GRANTS FOR MASSACHUSETTS SMALL BUSINESSES

Grants Overview

The Commonwealth of Massachusetts has made $50.8 million in grants available to support small businesses, microenterprises, and their employees, families and communities. Massachusetts Growth Capital Corporation (MGCC) will be administering these funds to businesses experiencing economic hardship and a loss of income due to the COVID-19 pandemic.

These funds were appropriated through the Commonwealth’s Supplemental Budget for Fiscal Year 2021 (FY21) as well as the CARES Act of 2020 and are divided into two programs. 

Grant funding is intended to help businesses adversely impacted by the pandemic. Preference will be given to small businesses whose owners are women, minorities, veterans, members of other underrepresented groups, who are focused on serving the Gateway Cities of Massachusetts, and those most negatively impacted by the COVID-19 pandemic. Preference will also be given to applicants that have not been able to receive aid from other federal programs related to COVID-19.

 

Timeline: Application will be open for 3 weeks

10/22/2020 at 12:00 PM – Application opens.

11/12/2020 at 12:00 PM – Application closes.

 

Applicant Eligibility:

Each program encompasses its own eligibility criteria, set forth below. Applicants must review the information to determine which program to proceed with applying.


The Supreme Court has reversed and remanded California v. Texas, holding that the Plaintiffs do not have standing to challenge the Patient Protection and Affordable Care Act’s (ACA) minimum essential coverage provision.


The IRS issued two new, separate sets of frequently-asked-questions (FAQs) to assist families and small and mid-sized employers) in claiming credits under the American Rescue Plan (ARP). These FAQs provide information on eligibility, computing the credit amounts and how to claim these important tax benefits. Enacted in March to assist families and small businesses with the fallout of the COVID-19 pandemic and recovery underway, the ARP enhanced the child and dependent care credit and the paid sick and family leave credit.


The IRS has started sending letters to over 36 million families who, based on tax returns filed, may be eligible to receive monthly child tax credit payments starting July. Eligibility of these families are being evaluated based on information provided by taxpayers in their 2019 or 2020 tax returns, or through the Non-Filers tool while registering for an Economic Impact Payment. In addition, taxpayers who are eligible for advance child tax credit payments will receive a second, personalized letter listing an estimate of their monthly payment, starting July 15.


The IRS has finalized regulations relating to the mandatory 60-day postponement of certain time-sensitive tax-related deadlines by reason of a federally declared disaster. Further, the regulations clarify the definition of "federally declared disaster." The regulations affect individuals who reside in or were killed or injured in a disaster area, businesses that have a principal place of business in a disaster area, relief workers who provide assistance in a disaster area, or any taxpayer whose tax records necessary to meet a tax deadline are located in a disaster area.


The IRS has released a revenue procedure explaining how a taxpayer changes its method of computing depreciation for certain residential rental property. Automatic consent procedures for changing accounting method are available for taxpayers adopting the depreciation method changes.


An eligible partnership may file amended partnership returns for tax years beginning in 2018, 2019, and 2020 by filing a Form 1065, U.S. Return of Partnership Income (Form 1065), with the "Amended Return" box checked. The partnership may also issue an amended Schedule K-1, Partner’s Share of Income, Deductions, Credits, etc. (Schedule K-1), to each of its partners.


An estate was allowed a marital deduction because the decedent’s marriage was valid in the country of celebration. The decedent, who was Jewish, obtained a religious divorce under rabbinical law in New York from his first wife after a New York court had declared his Mexican divorce invalid, which resulted in the declaration that his marriage to a second wife was null and void. The decedent traveled to Israel and married his third wife in an Orthodox Jewish ceremony. The Israeli marriage certificate noted that the decedent was free to marry because he was divorced. The government claimed that because the divorce was not valid under state law, no marital deduction was allowed because the property did not pass to the decedent’s surviving spouse.


The Treasury Department and the IRS have announced that they intend to amend the base erosion and anti-abuse tax (BEAT) regulations under Code Sec. 59A and Code Sec. 6038A to defer the information reporting requirements for qualified derivative payments (QDPs) until tax years beginning on or after January 1, 2023. The current regulations provide that the QDP reporting requirements apply to tax years beginning on or after June 7, 2021.


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