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I hope this email finds you well. I wanted to send along a brief update with some business information, and the recent stimulus program approved by congress.
Kane Financial continues to be fully operational, with our usual hours of 8am – 5pm Monday through Friday, and Saturday 8am – 1pm. We are continuing to meet with clients regularly, and encourage you to schedule a meeting at your convenience, either just to catch up and go through some questions, or go through a comprehensive client review meeting.
We have moved all in-person meetings to phone and video conference for the month of April. The link below goes directly to my calendar, where you can schedule a meeting and indicate if you would like to speak over the phone, Google Meet, or Zoom Video Conference.
Click Here to Schedule a Meeting
As for the stimulus package recently approved, here is a high level overview of what we know so far:
Expect a check direct deposited or in the mail from the US treasury in the coming month. The $1,200 amount for single taxpayers starts to phase out at $75,000 of adjusted gross income, and the $2,400 amount for married taxpayers begins to phase out at $150,000 of adjusted gross income. This is based off of 2018 taxes, unless you have already filed for 2019.
These benefits have been expanded to include an additional $600 from the federal government, on top of the state unemployment one would qualify for. Additionally, this includes those previously excluded from qualifying, such as sole proprietors and independent contractors.
The Paycheck Protection Program allows small businesses under 500 employees to apply for a loan in the amount of 2.5 times the business’s average monthly payroll expense from 2019. If the business uses this money to retain employees and pay essential services such as rent and utilities, the entirety of the loan can be forgiven, and act as a tax free grant.
The EIDL is a $10,000 loan advance to businesses currently experiencing temporary difficulties due to COVID-19. This loan does need to be paid back, but provides flexible and generous repayment terms.
Required Minimum Distributions
Those over 72 who previously were required to take Required Minimum Distributions from Pre-tax retirement accounts, can skip those distributions for 2020. If you already took the distribution, there could be ways to reverse this and get the money back into your retirement account, if you wish to do so.
You can now donate up to $300 to charities, and receive the tax deduction, even if you do not itemize and you take the standard deduction.
Federal student loan repayments have been suspended until September 30th, 2020 and will accrue no additional interest during this time.
Markets and Economy
The markets have stabilized over the past couple of weeks, and as of this writing, the S&P 500 index has recovered by over 10% since its lows in March.
April is going to be a difficult month, and we are going to continue to see scary headlines around the spread of the virus, job losses, and the damage our economy is experiencing.
We are also going to see incredible stories about our heroic healthcare professionals at the front lines, businesses stepping up to fill the need for medical supplies, new treatments that are showing promise, innovative testing strategies, progress in the development of a vaccine, and the spirit of the American people on full display.
We will continue to communicate on a regular basis, and thank you for the trust you have placed in Kane Financial. If you have any questions or concerns, please do not hesitate to contact the office and/or schedule a meeting.