The ATA Chronicle - May/June 2020 - 9

($2,400 for joint filers), plus $500 per
child. The rebate is not taxable income as
it's a credit against tax liability and
is refundable for taxpayers with no
tax liability.
■	

■	

■	

Income phases out starting at $75,000
for single filers, $112,500 for heads of
household, and $150,000 for joint filers.
The amount of the rebate will be
recalculated based on 2020 income
when 2020 tax returns are filed.
Current payments will be based on
2019 tax returns (or 2018 returns if
2019 returns have not yet been filed).
If the calculation in 2020 results in
an underpayment, the taxpayer can
claim the difference on their 2020 tax
return. Overpayments will (probably)
be forgiven (taxpayers will not be
required to pay it back).

Charitable Deductions: Creates a $300
"above the line" deduction for cash
contributions to certain charities for
taxpayers using the standard deduction.
For itemizers, contributions may be
temporarily deducted up to 100% of
adjusted gross income, with any excess
carried over to the next five years.
IRA Withdrawals: Waves the 10% early
withdrawal penalty on certain retirement
account distributions for taxpayers facing
virus-related challenges.
■	

The waiver only applies if the taxpayer
meets specified virus-related conditions.
The withdrawals are still subject to
regular income taxes but may be spread
out over a three-year period. Amounts
withdrawn may be repaid without regard
to the annual cap on contributions.

Student Loans: Payments and interest
on all federal loans held by the
Department of Education are suspended
until September 30, 2020. This allows an
employer to pay up to $5,250 in 2020 on
an employee's student loan debt, with the
payments being tax-free to the employee.
■	

■	

Does not apply to Federal Family
Education Loans and Perkins federal
loans or loans that are not held by the
U.S. Department of Education.
Payments made during this period
should be counted in full as principal

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repayments, resulting in a faster
reduction of the principal balance and
lower interest costs.
Delayed Payment of Employer Payroll
Tax and Self-Employment Tax:
■	

The employer share of the 6.2%
Social Security tax due through
December 31, 2020 can be paid
on December 31, 2021 (50%) and
December 31, 2022 (50%).

■	

Self-employed taxpayers can defer
paying 50% of the self-employment tax
due through the end of 2020 until the
end of 2021 (25%) and 2022 (25%).

■	

Not available to businesses receiving
forgiveness of a payroll protection loan.

Changes to Net Operating Loss Rules:
Temporarily reverses the changes made
by the Tax Cuts and Jobs Act (TCJA) on
loss carrybacks and carryforwards.
■	

■	

Losses from 2018, 2019, and 2020 may
be carried back for up to five years.
Taxpayer may forgo the carryback and
carry the loss forward instead.
Losses carried forward to 2019 and
2020 will be permitted to offset 100%
of taxable income, instead of 80% as
under TCJA.

COVID-19 has disrupted the
translation and interpreting
marketplace in ways we could not
have imagined a few months ago.
Small Business Loans (Paycheck
Protection Loans) for Certain Small
Businesses, Including Self-Employed
Individuals During the Period from
February 15 to June 30, 2020:
■	

■	

May be eligible to obtain loans
to cover payroll, group health
benefits, employee salaries and other
compensation, interest on mortgages,
rent, utilities, and interest on other
debt obligations previously incurred.
"Payroll" includes wages, commissions,
salary, or similar compensation to an
employee or independent contractor.

■	

A separate section allows a portion of
these loans to be forgiven tax free.

Emergency Economic Injury Disaster
Loans (EIDL) and Grants of Up
to $10,000 for Small Businesses,
Nonprofits, Independent Contractors,
and Self-Employed Individuals:
■	

Similar to the small business loans
above, the interest rate on these
loans is 3.75%. They are repayable
over a period of up to 30 years. Loan
applicants may apply for an advance
of up to $10,000, which need not be
repaid if the loan is not granted.

Employee Retention Credit: Creates
a one-year credit against the employer's
6.2% share of Social Security payroll
taxes for businesses that were forced
to suspend or close operations due to
the pandemic but continue to pay their
employees during the shutdown.
Businesses are eligible if:
■	

Operations were fully or partially
suspended during any calendar
quarter in 2020 due to orders from a
government authority as a result of the
pandemic, or​

■	

Business remained open but gross
receipts during any quarter in 2020
were less than 50% of what they were
in the same quarter in 2019.

To read the full text of the CARES Act,
visit: https://bit.ly/CARES-pandemic.

WE ARE A COMMUNITY-
SHARE AND CONNECT
COVID-19 has disrupted the translation
and interpreting marketplace in ways we
could not have imagined a few months
ago. This is going to be a real challenge.
As an ATA member, you don't have
to go it alone. Please do not hesitate to
let your association know how it can
support you in your professional life.

Questions? Need More Information?
ATA staff are available 9:00 to 5:00 EDT!
Call us at +1-703-683-6100, extension
3001, or email ata@atanet.org. Need
to get in touch with someone about
membership? Send an email to Trish
Boward at membership@atanet.org.
American Translators Association

9


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The ATA Chronicle - May/June 2020

Table of Contents for the Digital Edition of The ATA Chronicle - May/June 2020

Contents
The ATA Chronicle - May/June 2020 - Cover1
The ATA Chronicle - May/June 2020 - 2
The ATA Chronicle - May/June 2020 - Contents
The ATA Chronicle - May/June 2020 - 4
The ATA Chronicle - May/June 2020 - 5
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