June 2020 E-Newsletter


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Our team at KVLSM is thinking of you and your families and we hope you are staying safe and healthy during these times. A limited staff is working in the office, while the rest is working remotely. We can be reached via email or by calling the office. Please continue to check our COVID-19 resource page on our website for updates and options available to you.

Our staff is available to work with you remotely to help you with your needs, including addressing your tax issues and helping you apply for PPP loans for your small business. We also advise you to review our latest Treasury Notice.

KVLSM is dedicated to helping our community through this difficult time, so if you require any assistance, please call us at (516) 294-0400 or visit our contact page and we will work with you to address your needs.



Make Sure Your Loan is Forgiven
The Coronavirus Aid, Relief, and Economic Security (CARES) Act provided for small businesses to receive low-interest loans under the Paycheck Protection Program (PPP). At this writing, Congress is considering additional billions in funding to replenish the depleted program. Meanwhile, here is an overview of the program.

Should You Refinance Your Mortgage
Refinancing your mortgage could result in a lower monthly payment, especially with interest rates at a near historic low. Here's what to consider before you decide:

CARES Act Retirement Plan Changes
The Coronavirus Aid, Relief, and Economic Security (CARES) Act offers relief to individuals with some major changes to retirement plans in the near-term. These temporary new rules apply to both current retirees and those saving for future retirements.

June 2020 Client Profile
At the beginning of the year, Phil, age 40, took out a 401(k) loan to use as a down payment on his new home. When the coronavirus hit, Phil was laid off from his job at a travel tech firm as flights all but came to a standstill.

Payroll Tax Credit Eligibility
The CARES Act's new Employee Retention Credit is an alternative to receiving a loan through the Paycheck Protection Program (PPP). Businesses may choose the credit or PPP loan, if available. Unlike the PPP, the tax credit does not have a limit on the size of your business, making it an option for larger companies that don’t qualify for the PPP.

Tax Deadline Extension
As part of the federal government's response to the economic impact of the coronavirus, Tax Day has been moved from April 15, 2020 to July 15, 2020 - a three-month extension. Both individuals and businesses have until this new deadline to both file their taxes and make a payment on anything owed.

Think Before Tapping 401(k) as Emergency Fund
Do you need a quick infusion of cash?
Under the Coronavirus Aid, Relief, and Economic Security (CARES) Act, you may be able to take money out of a qualified plan, like a 401(k), or an IRA, with favorable tax consequences. But should you do it? You might view withdrawing money from a retirement account as a last resort.


  • Income Tax Preparation for all types of businesses and individuals
  • IRS, State and Local Audit Representation
  • Trust, Estate and Gift Compliance
  • QuickBooks setup, support and training
  • Business startup services
  • Monthly bookkeeping
  • Financial statements
  • Family Office
  • Nonprofit Administration

Additional Updated Information

April 2020 E-Newsletter

March 2020 E-Newsletter

February 2020 E-Newsletter

June 2020 Q & A

Q: I am filing taxes on July 15. Can I still contribute to my IRA?

A: Yes, but your income and tax filing status will determine if your traditional IRA contributions are tax-deductible. For example, if you are covered by a retirement plan at work and your tax filing status is single or head of household, you can make a tax-deductible contribution of up to the limit of $6,000 if your modified adjusted gross income (MAGI) is $64,000 or less. Take a partial deduction if your MAGI is between $64,000 and $74,000.

If you file jointly or are a qualified widower, the income limit for a full deduction is $103,000. Married taxpayers filing jointly have no income limits to qualify for tax-deductible contributions when neither has a workplace retirement plan. If your spouse has a workplace plan and you don’t, take a full deduction if your MAGI is $193,000.

Q:I was laid off because of COVID-19. Will I have to pay taxes on my unemployment benefits?

A: Yes, unemployment benefits are generally taxed at federal ordinary income rates. Some states also count unemployment benefits as taxable income while others exempt it. You can opt to have 10% withheld from each payment. No other percentage or amount is allowed.



Individuals with federal student loans can defer their payments for up to six months under the CARES Act. If you're facing hardship, you can suspend your payments until September 30, 2020 without accruing additional interest. This will happen automatically, meaning you don't need to contact your loan services to take advantage of federal student loan forbearance.


The CARES Act includes a provision to increase deductions for charitable giving during the crisis. If you don't itemize your taxes, you can take an above-the-line deduction of up to $300. In other words, you don't have to pay taxes on that amount. If you do itemize your taxes, you can deduct gifts up to 100% of your adjusted gross income, rather than the usual 60%.


Trust is high in public health officials like the Centers for Disease Control (CDC), according to a recent Gallup poll. Government health agencies earned an 80% approval rate, while hospitals topped the list with 88% approval. The bottom of the list was the news media, which only had a 44% approval on its response to the coronavirus.


With the Fed lowering the federal funds rate to near-zero in March, mortgage rates have also dropped significantly. As a result, homeowners have been scurrying to refinance their mortgages to take advantage of this savings opportunity. In the last week of March, refinance applications jumped 168% from the previous year. They also increased 26% compared to the week before. Mortgage applications for new homebuyers dropped 24% year over year, as measured by the MBA Purchase Index. This is largely due to the economic uncertainty surrounding COVID-19.

(516) 294-0400

(516) 938-0491




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