We have some important updates for Social Security recipients and small businesses. Here's the latest today:
The Treasury Department and the Internal Revenue Service have announced that Social Security beneficiaries who are not typically required to file tax returns will not need to file an abbreviated tax return to receive an Economic Impact Payment. Instead, payments will be automatically deposited into their bank accounts.
The IRS will use the information on the Form SSA-1099 and Form RRB-1099 to generate $1,200 Economic Impact Payments to Social Security recipients who did not file tax returns in 2018 or 2019. Recipients will receive these payments as a direct deposit or by paper check, identical to how they currently receive their benefits.
This Friday, small businesses and sole proprietorships will be able to apply for the Paycheck Protection Program, a provision of the CARES Act (the coronavirus relief package passed by Congress and signed into law last week) that provides small businesses with funds to pay up to 8 weeks of payroll costs including benefits. Funds can also be used to pay interest on mortgages, rent, and utilities. The funds are provided in the form of loans that will be fully forgiven when used for payroll costs, interest on mortgages, rent, and utilities. Small businesses can apply through any federally insured depository institution, federally insured credit union, and Farm Credit System institution that is participating. Here are some resources for small business owners: