Paycheck Protection Program

STIMULUS UPDATES

The Biden Plan

President Joe Biden plans to hit the ground running. Here are some highlights of his proposed stimulus plan:

• An increase of $1,400 to the $600 stimulus payments that are being processed now

• Federal unemployment benefits would increase from $300 to $400 per week

• Extending the moratorium on evictions and foreclosures until September 30

• $350 billion for state and local governments

• $130 billion to help schools reopen

• $50 billion for COVID-19 testing

• $20 billion to help with a national vaccination program

• Increasing the Child Tax Credit to $3,000 per child and making it refundable

His package also includes a push to increase the federal minimum wage to $15 per hour. Many leading economists warn that additional support from the federal government may be needed until the pandemic has subsided and people can safely return to work.

TAX ISSUES

Normally the tax filing season begins in mid to late January, but this year, the IRS will not begin accepting returns until February 12. Reasons for the delay include new programming needed to incorporate the Recovery Rebate Credit on tax returns. This means that some early filers will not receive refunds until early March. Because the IRS is still processing the backlog of mail that accumulated when the agency shut down last spring, electronic filing is highly recommended.