COVID-19 Information for Individuals

• Advance credit on your 2020 taxes paid during the year. 
• $1,200 per person plus $500 for eligible dependents under 17 years of age
• US resident with Adjusted Gross Income (AGI) up to $75,000 (Single), $112,500 (HoH) or $150,000 (Married). If your income is above these limits, you may receive a pro-rata share until you reach $99,000 (single), $146,500 (head of household) or $198,000 (married)
• No action is required to receive the money. 
• It will be sent out in April/May. 
• Income is based on your 2019 tax filing, if available, or else 2018 will be used. 
• This will be treated as an advanced payment on a 2020 tax credit and there will be a "true up" to actual income in connection with your 2020 filing. Another words, if your income changes substantially when you file your 2020 tax return, you could receive the rebate then (if you did not already receive it during the year), or you may owe it back if you then did not qualify. 
• If you used direct deposit on your tax filing, the money will be directly deposited to your account; otherwise a check will be mailed to your last tax filing address. 

To confirm your payment or provide the IRS additional information such as banking information, use this link:  https://www.irs.gov/coronavirus/economic-impact-payments  

More information HERE

***UPDATE DECEMBER 2020***

Under the provisions signed into law December 27, 2020: 

There is a second round of stimulus payments beginning late December 2020 for $600 per taxpayer plus $600 per qualifying child.  Income limits are the same as above.  There is speculation this may be raised to $2000 but this has not passed into law at this time. IRS plans to update the above website with additional information on this second round as available. 

***UPDATE MARCH 2021***

Single taxpayers with AGI under $75,000 ($150,000 for married) will receive $1,400 stimulus as an advance against a 2021 tax credit. The credit phases out at $80,000 ($160,000 for joint)

Employers with less than 500 employees must provide up to 2 weeks paid leave to employees. May be a hardship exemption for businesses with fewer than 50 employees for school closings or childcare unavailability if it could jeopardize business as a going concern. Qualifying reasons: 

1. Quarantine or isolation order- 100% pay for 2 weeks up to $511 per day
2. Health Care Provider advised self-quarantine- 100% pay for 2 weeks up to $511 per day
3. Experiencing symptoms and seeking diagnosis- 100% pay for 2 weeks up to $511 per day
4. Caring for individual subject to (1) or (2) above- 2/3 pay for 2 weeks up to $200 per day
5. Caring for a child whose school or childcare closed- 2/3 pay for 12 weeks up to $200 per day

• Employee information posters required to be posted: click HERE
• Employer Information: click HERE
• FAQs: click HERE

You can take a retirement plan distribution up to $100,000 without penalty. It IS still subject to income tax; however, that tax can be spread over three years. The money can also re-contributed back into the plan to avoid the tax within three years without regard for the annual contribution limits.  

Employer may contribute up to $5,250 annually toward an employee's student loans without the employee having to pay tax on it. 

Will be able to be deducted on your Federal Return in 2020 to 2022 (even if you are not itemizing) up to $300. ***December 2020 update*** The 2021 amount could be up to $600. 

The Federal government may supplement state unemployment payments up to an additional $300-$600 per week as well as include self-employed, independent contractors, etc. for up to four months.  In some cases, with this added payment, you may receive more in unemployment than your normal paycheck. Senator Whitehouse noted the break-even salary point was $62,500 for 2020. 

***March 2021*** The first $10,200 of unemployment will be non-taxable (retroactively to 2020) for households earnings less than $150,000.  The IRS released tax forms, instructions and calculations for this about a week after the law change.  They later updated the instructions and calculations. If your return was filed with this income as taxable and you qualify for it to be non-taxable, IRS has stated they automatically make the change and issue refunds. 

This income is taxable in MA. 

RI tax forms base their income off the federal non-taxable and included no modification even after the  after both federal changes.  However, on March 25, announced they would update their tax forms to make the unemployment income taxable. If your RI return was filed with this as non-taxable, an updated return is due by the tax filing date. 

Most waiting periods have been waived. Covering more than usual such as independent contractors and self-employed. States encouraging everyone out of work to apply immediately.  

**March 2021*** If at the end of the year you received too much of an Advanced Premium Tax Credit  to lower your health insurance from the state marketplace and owe it back on the tax reconciliation, you do not have to pay back the excess with your 2020 return. Guidance is still pending for those that already filed. 

Deferral of payments for 90 days without impact on credit reporting from certain RI banks 

More info and participating banks HERE