COVID-19 > Taxation
- Do PPP Loans count as taxable income?
One benefit of the PPP Loans is that they are forgivable if the borrower meets certain criteria, and per the IRS (Notice 2020-32), the amount that is forgiven is not included in taxable income; however, because it is not included as taxable income, any expenses paid with forgiven loan proceeds are not tax deductible.
- Have payroll and excise tax deadlines been extended?
No. Per the IRS website, payroll tax payment and report filing due dates have not been extended.
- Explain the Employee Retention Credits available through the CARES Act.
Any eligible employers who meet the following may receive a refundable tax credit for payments to employees up to 50% of their wages up to $10,000 until January 1, 2021. Employers who received funding from the Payroll Protection Program are not eligible:
- Fully or partially suspends operation during any calendar quarter in 2020 due to orders from an appropriate governmental authority limiting commerce, travel, or group meetings (for commercial, social, religious, or other purposes) due to COVID-19; or
- Experiences a significant decline in gross receipts during the calendar quarter.