ROCHESTER, N.Y. (WROC) — Not everyone will receive a check as part of the second round of Coronavirus stimulus from the federal government.
CPA Jamie Block of Mercer Advisors and the New York State Society of CPAs discussed the income qualifications and the impact of federal relief on businesses Thursday during News 8 at Sunrise.
“The second round of stimulus checks are $600 per person and dependents,” said Block. “Some people have already received the money in their bank accounts. The income limits remain the same at $75,000 for single, $150,000 for married and $112,500 for head of household filers based on your 2019 tax return.”
Another round of the Paycheck Protection Program is coming for businesses struggling during the COVID-19 pandemic. “First and most importantly, the expenses that were used with previous and new PPP loans are now able to be deducted,” Block explained. “Therefore, PPP money does not increase business income or taxes.”
Block said there is a second round of PPP lending for those who are eligible and didn’t apply the first time and a second round of funding for those who received funds in 2020. “To qualify for the second round of PPP loans, the business much have experienced a drop in revenue of more than 25% in any quarter in 2020 – compared to the same quarter in 2019.”
As it relates to amounts on money, Block said the maximum amount you can tax in PPP loans for the latest round is still 2.5 times the average monthly payroll cost capped at $2 million instead of $10 million. One exception are those businesses in the Accommodation and Food Service industries as they can obtain loans up to 3.5 times their average monthly payroll, still capped at $2 million.
“You can now use these funds for group term life, group disability, vision, and/or dental. There is also simplified forgiveness for those who borrow $150,000 or less.”