Verdant COVID-19 Update Center
Keeping you up to date on the lastest government changes.
Our offices remain open with essential staff. All other employees are set up and working remotely. Tax professionals are available by phone, email, and/or video call, during our normal business hours of 8:30 a.m. – 4:30 p.m.
We would like to remind you that we have resources by which you can send any information needed without coming into the office.
As of 03/22/2021
Note: the first quarter estimate deadline of April 15th has not been changed. But filing and payments for 2020 individual tax returns for both federal and Nebraska have been extended to May 17th.
Unemployment benefits tax-free
For taxpayers with less than $150,000 in 2020 adjusted gross income (AGI), the first $10,200 of 2020 unemployment benefits are tax-free.
A new round of stimulus checks provides up to $1,400 per individual, including college students and qualifying relatives. Phase-outs are modified: $75,000 to $80,000 for single filers; $112,500 to $120,000 for head of household; and $150,000 to $160,000 for married filing jointly.
The IRS will issue checks based on 2019 filings unless the 2020 return has already been filed.
Child Tax Credit expanded
The 2021 credit is increased to $3,000 per child ($3,600 for six years or younger), subject to phase-out limitations. An advance on the credit will be available with IRS guidance coming.
FFCRA credits extended
Paid sick and family leave credits are now extended through September 30, 2021. The program continues to be voluntary in 2021, however, the 80-hour limitation on paid sick leave hours resets on April 1, 2021. For purposes of the family leave credit, eligible wages increased to $12,000 from $10,000.
Employee retention credit (ERC) extended
The ERC is now extended through December 31, 2021. This credit can be substantial for employers who qualify. In 2021, a business may qualify if it either (1) demonstrates at least a 20% decline in a 2021 calendar quarter gross receipts compared to the same calendar quarter in 2019; or (2) experiences a business shutdown mandated by a government authority.
Recovery startup businesses, those that began after February 15, 2020, and had less than $1 million in gross receipts, could be eligible for an expanded credit of up to $50,000 per quarter for the third and fourth quarters of 2021.
Restaurant Revitalization Grants
The Small Business Administration has a new program specific to restaurants that aims to offset a “pandemic-related revenue loss” in 2020. Guidance is needed from the SBA to detail how this program operates.
As of 01/13/2021
We are excited to share the latest developments on the extended Paycheck Protection Program (PPP).
Many of our clients applied for and received the first round of PPP loans. The second federal stimulus package provides additional PPP funds for new and second-time borrowers.
The Small Business Administration (SBA) expects to begin accepting applications the week of January 11, 2021. Funds will be awarded on a first-come, first-serve basis. Consequently, we highly encourage interested clients to begin collaborating with their business banker as soon as possible.
The loan amount will be based on 2.5x the borrower’s average monthly payroll.
Use of the funds generally remains the same as before—
- PPP funds received must be spent within the 8- or 24-week covered period following disbursement.
- Staffing and compensation levels must be maintained.
- Loan proceeds must be spent on payroll and other eligible expenses such as rent, utilities, and mortgage interest.
- At least 60% of the funds are used for payroll.
- The second round PPP provisions also add a few other categories of qualifying expenses.
Funds are available for some new businesses and for many types of organizations that were ineligible to participate in the first round of PPP loans.
Only businesses that can demonstrate a significant revenue decline should apply for “second draw” PPP funds.
“Second Draw” PPP Borrowers
To qualify to receive additional PPP funds and forgiveness, applicants must—
- Use or will use the full amount of the first PPP loan before disbursement of a second PPP loan.
- Have fully spent first-round PPP funds on eligible expenses.
- Have experienced a revenue decline of 25% or more for at least one quarter in 2020 compared to the same quarter in 2019.
For more detailed information, please visit the SBA website and check out the application links below:
Verdant PPP Support
We will be glad to assist you in the following ways—
- Submit tax and financial documentation to you or lender as part of the application process.
- Help PPP borrowers comply with rules for the proper use of funds.
- Process PPP-related payrolls, as needed.
- Assist with preparation of PPP loan forgiveness applications.
Latest Government Pandemic Relief
On 12/31/20, Congress passed another large bill that includes several financial and tax provisions benefiting individuals and businesses. On Sunday, 12/27/20 the president signed the bill into law.
The bill is quite lengthy—5,593 pages—but we have for now highlighted some of the most pertinent provisions of the bill below.
- Second round of stimulus funds
- PPP Funds Taxability
- New Round of PPP Loans
- Simplified PPP Forgiveness for Loans Up to $150K
- Government Payments on SBA Loans Not Taxable
- Extension of Paid Leave Under the FFCRA
- 100% Deductible Business Meals
- Employee Retention Credit
- Tax Extenders
Small Business Stabilization Program
For more information and for application visit: https://coronavirus.nebraska.gov/Programs&Grants#SmallBusinessStabilizationProgram
The Paycheck Protection Program (PPP) Flexibility Act
Signed into law by the President June 5, 2020, The Paycheck Protection Program Flexibility Act amends the Paycheck Protection Program (PPP) to give borrowers more freedom in how and when loan funds are spent while retaining the possibility of full forgiveness.
- Borrowers now have 24 weeks to spend loan proceeds, up from 8 weeks.
- The PPP Flexibility Act reduces mandatory payroll spending from 75% to 60%.
- Two new exceptions let borrowers obtain full forgiveness even without fully restoring their workforce.
- The time to pay off the loan has been extended to five years from the original two.
- Payment deferment extension
- The PPP program was extended to December 31, 2020
- Enhanced rehiring exemptions
- Deferred payroll taxes
Economic Impact Payments
The IRS is committed to helping you get your Economic Impact Payment as soon as possible. The payments, also referred to by some as stimulus payments, are automatic for most taxpayers. No further action is needed by taxpayers who filed tax returns in 2018 and 2019 and most seniors and retirees.
Paycheck Protection Program
The SBA loans available to small businesses seem like a fantastic deal. The experts, and the people that actually need to process the loan are banks that facilitate SBA loans. If your bank does not facilitate SBA loans, we have been working with:
Applications open April 3.
Resources for the Paycheck Protection Program
Extended Tax Deadline
Secretary Steven Mnuchin announced that the April 15th tax filing deadline will be extended to July 15th. This gives all taxpayers and businesses three extra months to file and make payments without interest or penalties. Governor Ricketts has not officially announced the extension of the Nebraska filing deadline, but we expect it will be coming soon.
What does this mean for you? During this time of uncertainty and change, you have one less thing to worry about. Take care of yourself, your family and stay safe. We now have extra time to get your taxes filed. If you are expecting a refund, or need your taxes filed soon for another reason (like a loan application), contact your tax professional and we will prioritize the filing of your return.
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Overview of Extensions Granted
Type of Tax Return
Individual/married tax return and payment
Form 1040, 1040-SR, 1040-NR, 1040-NR-EZ, 1040-PR, 1040-SS
Trust and Estate tax return and payment
Form 1041, 1041-N, 1041-QFT
Form 1065; Form 1066
Corporation tax return & payments
Form 1120, 1120-C, 1120-F, 1120-FSC, 1120-H, 1120-L, 1120-ND, 1120-PC, 1120-POL, 1120-REIT, 1120-RIC, 1120-S, 1120-SF
United States Estate and Generation-Skipping Transfer Tax Return & payment
Form 706; 706-NA, 706-A, 706-QDT, 706-GS(T), 706-GS(D), 706-GS(D-1)
Form 706 pursuant to Rev. Proc. 2017-34
Information Regarding Beneficiaries Acquiring Property from a Decedent
United States Gift and Generation-Skipping Transfer Tax Return and payment
Exempt Organization Business Income Tax Return & payment
Excise tax payments on investment income & payment
Form 990-PF; Form 4720
Quarterly Estimated Income Tax Payments & payments
Form 990-W; Form 1040-ES; 1040-ES (NR), 1040-ES (PR); Form 1041-ES; Form 1120-W
Return of Organization Exempt from Income Tax**
Annual Return/Report of Employee Benefit Plan**
* = This relief includes not just the filing of specified Forms, but also all schedules, returns, and other forms that are filed as attachments to specified forms or are required to be filed by the due date of Specified Forms.
** = This relief comes through Rev. Proc. 2018-58 for affected taxpayers with a time sensitive which is due to be performed on or after April 1, 2020.
NOTE: The above list is not intended to be all inclusive. Rev. Proc. 2018-58 provides other disaster-related relief for time-sensitive actions and elections.