News

Independence is waiving member cost‑sharing on COVID‑19 treatment and waiving certain prior authorization requirements

As the COVID‑19 pandemic evolves, Independence is working with local and national health officials to assess current conditions, health care for our members, and ways to help our clients and partners. To reduce barriers, so that members can get the care they need, when they need it, Independence is waiving member cost-sharing for in-network, inpatient, acute care treatment for COVID‑19. This means members will have no out-of-pocket costs for COVID‑19 hospitalizations.

Independence will also waive cost-sharing for Emergency Room visits when members are admitted to the hospital for COVID‑19 treatment. These changes are effective March 30, 2020, and will extend through May 31, 2020. This applies to all individual and family plans and all fully insured group business. Self‑funded groups may opt out; to do so they must inform their account executive by April 10.

Cost‑sharing will continue to be applied to all post‑acute care (e.g. skilled nursing, rehabilitation, and long‑term acute care facilities), outpatient treatment, prescription drugs, ambulance transportation to a post‑acute setting, and out of network care.

Waiving certain prior authorization requirements

We are taking measures to help physicians and health care facilities during the COVID‑19 outbreak so members can more easily access the care they need. This includes temporarily suspending prior authorization requirements for these situations at in‑network facilities:

• Acute inpatient admissions from the emergency department for members with a COVID‑19 diagnosis.
• Transfers from acute inpatient facilities to post‑acute facilities, including long‑term acute care hospitals, rehabilitation, and skilled nursing facilities, for any diagnoses. This includes transportation from the acute inpatient facility to a subacute facility.
• Transportation between facilities.

Independence will work closely with provider facilities to gather clinical information and coordinate transitions of care for members. This will remain in place until April 30, 2020, at which time we will reassess based on COVID‑19 activity. These prior authorization requirements apply to all fully insured and self‑funded accounts.

Application Portal:  http://media.whatcounts.com/ibc_mktgcomm/2020IndependenceEdge/April06_OffCycle/COVID-19MemberCostsWaivingBROKER.html

ePro Tax & Financial Services Company wishes all customers and their families to be safe during the COVID-19 pandemic! Currently, we help small and medium enterprises apply for support funds in order to relieve their financial stress during this pandemic.

Loans and Grant Programs are as follow:

• Philadelphia COVID-19 Small Business Relief Fund
• Certified Economic Development Organization Fund
• The U.S. Small Business Administration Disaster Loan
• Paycheck Protection Program
• The Express Bridge Loan-EBL

We have included links and instructions for customers to find out more about the program and to apply themselves. However, if we still need our help, we can help you complete all the relevant applications and submit them for you for a nominal fee to cover our costs.

Call: 215-298-9448 /610-597-8086 (Steven Xue)  WeChat: eProtax

What is Philadelphia COVID-19 Small Business Relief Fund? – Only $5,000 grant available – updated 3/30/2020

The City of Philadelphia’s Department of Commerce and the Philadelphia Industrial Development Corporation (PIDC) have partnered to generate THE COVID-19 Small Business Relief Fund to help small businesses survive the public health crisis. The Small Business Relief Fund has an online application, is aiming to provide financial relief, prevent the layoff of employees, help businesses prevent predatory lenders, and maintain the provision of goods and services for the City.

What purposes are assisting in the Small Business Relief Fund?

The goal of the relief fund includes:

• Assisting small businesses to survive the COVID-19 crisis
• Retaining employment and helping small businesses continue to pay employees
• Helping businesses avoid predatory lenders
• Maintaining the provision of goods and services for Philadelphia’s residents

More Details about Three Programs in the Small Business Relief Fund

What priorities should the Review Committee consider when awarding grants and loans?

• The number of jobs that the business sustains during a normal business cycle (pre-COVID-19 levels).
• The business demonstrates that it has lost a significant share (50% or more ) of revenue due to the COVID-19 pandemic.
• The business demonstrates a strong chance of remaining open post-COVID-19.
• The business has experienced a loss of revenue from other situations in addition to COVID-19, such as recent public works projects (i.e. water main breaks, utility repairs, street closure).
• The business provides jobs to low-income individuals and /or is located in a zip code with high poverty.
• The business has operated consistently for two years or more.
• For sole proprietors/independent contractors, priority will be given to those who are located in zip codes with high poverty and/or those that sustain multiple sub-contractors during normal business (pre-COVID-19 level).

Application Portal: https://phila-uyims.formstack.com/forms/philadelphia_covid_19_small_business_relief_fund

The SBA Disaster Loan

What is the SBA Disaster Loan? 

The U.S. Small Business Administration (SBA) is aiming to help businesses in starting, building and growing. The SBA was created in 1953 as an independent agency of the federal government to aid, counsel, assist and protect the interests of small business concerns, to preserve free competitive enterprise and to maintain and strengthen the overall economy of our nation. The SBA offers disaster assistance in the form of low-interest loans to businesses, renters, and homeowners located in regions affected by declared disasters, such as COVID-19. Moreover, the SBA Disaster Loan includes four loan plans: Home and Personal Property Loans, Business Physical Disaster Loans, Economic Injury Disaster Loans, and Military Reservists Economic Injury Disaster loans.

What is SBA’s Economic Injury Disaster Loan Program?

The SBA’s Economic Injury Disaster Loan program provides small businesses with working capital loans of up to $2 million that can provide vital economic support to small businesses to help overcome the temporary loss of revenue they are experiencing.

Small business owners in all U.S. states, Washington D.C., and territories are currently eligible to apply for a long term low-interest loan due to Coronavirus (COVID-19).

Application Form: https://disasterloan.sba.gov/apply-for-disaster-loan/index.html

What are the interest rates for assisting small businesses?

Eligibility for Economic Injury Disaster Loans is based on the financial impact of COVID-19. The interest rate is 3.75 percent for small businesses. The interest rate for private non-profit organizations is 2.75 percent. SBA offers loans with long-term repayments in order to keep payments affordable, up to a maximum of 30 years and are 

available to entities without the financial ability to offset the adverse impact without hardship.

What are the requirements to be eligible for applying for business loans?

• Good character
• Acceptable Credit History
• Repayment Ability

The Three Steps Process for Application:

1. Log in the website: https://disasterloan.sba.gov/ela
2. Fill in the application form

• SBA Form 5 or 5C
• SBA Form 413D
• SBA Form 2202
• IRS Form 4506 T

      3.Review your application status

Application Portal: https://disasterloan.sba.gov/ela/

Pennsylvania State Small Business Loan

Pennsylvania Industrial Development Authority Overview

The PIDA provides low-interest loans and lines of credit for eligible businesses that commit to creating and retaining full-time jobs and for the development of industrial parks and multi-tenant facilities. Loan applications are packaged and underwritten by a network of certified economic development organizations (CEDO) that partner with PIDA to administer the program.

What can the Small Business Loan be used for?

• Land and building acquisitions
• Construction and renovation costs
• Machinery and equipment purchases
• Working capital and accounts receivable lines of credit
• Multi-tenant facility projects
• Industrial park projects

What will be eligible for applying for funding?

The PIDA program finances a portion of total eligible project costs. The maximum participation amount is determined by a variety of factors such as the proposed use of the PIDA funds, the business enterprise type applying for financing, the amount of matching financing from sources outside of PIDA, and the number of full-time jobs to be retained or created. Loan approval is contingent upon meeting the program underwriting and collateral requirements. 

A variety of different industry sectors are eligible for PIDA financing including manufacturing, industrial, agricultural, research and development, hospitality, defense conversion, recycling, construction, child day-care, retail and service, export, and computer-related service enterprises.

How do you apply for Small Business Funding?

Loan applications are packaged by a CEDO that services the county your business is or will be located in.  The CEDO will work with you to determine whether or not the PIDA loan program can assist with financing the needs of your business and will discuss with you in detail how the application process works.

Check if you are eligible: https://dced.pa.gov/cedo/

Application Portal: https://dced.pa.gov/business-assistance/small-business-assistance/

Every year people give money for various reasons and to different people and organizations. Below are several commonly asked questions about the gifting of money.

Who pays the gift tax?
The donor is generally responsible for paying the gift tax.

Gift Tax:

Annual Exclusion: $15,000 in 2019

Tips: Charitable giving is one way you can positively impact your current tax position. One way to maximize charitable giving is to gift shock or mutual funds rather than cash. When you decide to gift rather than sell long-term appreciated shares, you’ll potentially get to take a reduction for the full fair market value of shares and avoid tax on the long-term capital gain. You also have the option of reducing your taxable estate by gifting up to $15,000 per year for single or $30,000 per year for a couple without any tax ramifications to you or the recipients of the gift. This allows the beneficiary to benefit from the gift much sooner than if the inheritance was tied up in the estate until dearth.

What can be excluded from gifts?

• Gifts that are not more than the annual exclusion for the calendar year.
• Tuition or medical expenses you pay for someone (the educational and medical exclusions).
• Gifts to your spouse.
• Gifts to a political organization for its use.
• In addition to this, gifts to qualifying charities are deductible from the value of the gift(s) made.

Do I need to pay tax with foreign wire transfer received from parents (non-US residents/citizens) living in another country?
It is not taxable income to you and not reported on your tax return since it is a gift. If the amount received from the foreign person is in excess of $100,000 for the year then you are required to report the funds received using IRS Form 3520.

Do I have to pay taxes on an inheritance Form A Foreign Relative?

Under most circumstances, you will not pay tax on the receipt of an inheritance from abroad – but you still may have to report it!

The short answer is that if you are a US person (US Citizen or Resident Alien) and you are receiving inheritance from a non US person (Non Resident Alien) who is abroad and the assets are based outside the US (non-US-Situs), the US will not impose taxes on you as the recipient, nor on the estate of the deceased.

• A caveat if the assets are US-Situs
  • If a foreign individual owns US property and passes away, the US-Situs portion of his or her estate will be taxed heavily. The Executor of the estate must file Form 706-NA and 40% estate taxes (in 2018) will be levied on any amount over $60,000. This is different from the way estate taxes are levied on US persons – the lifetime exemption here is $11.18 million.
• State inheritance taxes may still apply
  • Depending on the state you live in, you may owe inheritance taxes (to be paid by you, the beneficiary) on inheritance from a foreign source. It’s best to check with local estate attorney or accountant. Does your state have an inheritance?

Retirement Savings

401(K) Plans

• Contribution Limits: $19,000 in 2019 up from $18,000 from 2018. This increases to $25,000 if you are 50 or older
  • Individual Retirement Accounts (IRA) – Traditional IRAs
    • Contribution Limits: $6,000 in 2019 from $5,500 in 2018. This increases to $7,000 if you are 50 or older. 10% penalty if withdraw before age at 59.5
  • Roth IRAs
    • Contribution with after tax dollars. But money generated with the Roth is never taxed again. You’re not required to begin taking withdrawal at age 70.5 as you are with traditional IRAs, 401(K)s, and other retirements savings plans.
  • Simple IRA
    • The Savings Incentive Match for Employees (SIMPLE) IRA is a retirement plan that small businesses with up to 100 employees can offer. It works very much like a 401(K). Contributions are made with pretax paycheck withdrawals, and the money grows tax deferred until retirement.
    • Distributions taken within two years of opening the plan and before age 59.5 can result in a hefty penalty, however – 25%. You can’t borrow from a SIMPLE IRA, either, the way you can from a 401(K).
  • SEP IRA
    • A Simplified Employee Pension (SEP) IRA allows you to contribution a portion of your income to your income to your own retirement account if you’re self-employed and have no employees. You can fully deduct these contributions from your taxable income.
    • The maximum annual contribution limits are higher than most other tax-favored retirement accounts: $56,000 or 25% of income  – whichever is less – as of 2019. $57,000 for 2020.

Standard Deductions: A portion of your income not subject to tax that can be used to reduce your tax bill.

Standard deduction amounts

The amount of your standard deduction depends on the filing status you qualify for. In 2019 for example, single taxpayers and married taxpayers who file separate returns can claim a $12,200 standard deduction. Married couples filing jointly can claim an amount that’s twice as large, $24,400, and taxpayers filing as “head of household” (single individuals with dependents) can claim a standard deduction of $18,350.

Alternative Minimum Tax(AMT): An income tax calculated using a different set of rules meant to ensure certain taxpayers pay at least a minimum amount of tax. (AMT payers, who typically have relatively high income, essentially calculate their income tax twice, and then pay the higher amount owned).

How to avoid paying ATM

Lowering your adjusted gross income by maxing out contribution to a 401(K), IRA or health savings account can help, for example, as can keeping an eye on the size of your long-term capital gains.

If you suspect that you might own AMT, consult us to help you with the additional paperwork and reduce or avoid the tax.

Itemized Deduction

• Medical Expense Deduction
  • In general, you can deduct qualified, unreimbursed medical expenses that are more than 10% of your adjusted gross income for the tax year, up from 7.5% in 2018.
• State and Local Tax Deduction
  • The State and Local Tax(SALT)Deduction lets you deduct up to $10,000 total in combined property taxes and state and local income taxes or sales taxes(but not both).
• Interest Deduction
  • Mortgage Interest Deduction
    • In general you can deduct the mortgage interest you paid during the tax year on the first $1 million of your mortgage debt for your primary home or a second home. If you bought the house after Dec. 15, 2017, you can deduct the interest you paid during the year on the first $750,000 of the mortgage.
  • Investment Interest(Attach Form 4952 if required)
    • Investment interests is interest paid on money you borrowed that is allocable to property held for investment. It doesn’t include any interest allocable to passive activities(such as rental activities or any business in which the taxpayer does not participate)or to securities that generate tax-exempt income. Complete and attach Form 4952 to figure your deduction. Exception. You don’t have to file Form 4952 if all three of the following apply. 1. Your investment interest expense is less than your investment income from interest and ordinary dividends minus any qualified dividends. 2. You have no other deductible investment expenses. 3. You have to disallowed investment interest expense from 2018.
• Gifts to Charity
  • In general, you can deduct up to 60% of your adjusted gross income via charitable donations, but you may be limited to 20%, 30% or 50% depending on the type of contribution and the organization(contributions to certain private foundations, veterans organizations, fraternal societies, and cemetery organizations come with a lower limit, for instance).
• Gambling Loss
  • The Internal Revenue Service(IRS)views gambling wins as income, and therefore requires people to pay tax on the winnings. It allows people to deduct their gambling losses if they itemize their deductions. Gambling losses that are deducted cannot exceed the winnings reported as income. So if a gambler has $3,000 in winnings but $7,000 in losses, he or she can only deduct $3,000. The remaining $4,000 cannot be written off or carried forward to future years. If a gambler has $3,000 in winnings and $1,000 in losses, he or she can report the $3,000 as income and then claim the $1,000 as an itemized deduction.
• Income Limitation for Itemized Deduction
  • You are subject to the limit on certain itemized deductions if your adjusted gross income(AGI)is more than $313,800 if married filing jointly or Schedule A(Form 1040)qualifying widow(er), $287,550 if head of household, $261,500 if single, or $156,900 if married filing separately. Your AGI is the amount on Form 1040, line 38.
• Casualty and theft losses
  • The TCIA limits the casualty and theft loss deduction to losses sustained due to events that occurred in locations that have been declared to be disaster areas by the U.S. president.
• Other Itemized Deduction: Subject to the 2%
  • These deductions allows to deduct only the amount of expense that is over 2% if the Adjusted Gross Income, or AGI.

Foreign Financial Accounts Disclosure

FATCA(Foreign Account Tax Compliance Act)

• A US federal law that is intended to target US Persons who may be concealing assets held in foreign accounts
• Some foreign entities must report US clients or owners directly (or indirectly, through their local tax authorities) to the IRS. FATCA has classed all non-US entities into two categories:
  • Foreign Financial Institutions (FFIs)
  • Non-Financial Foreign Entities (NFFEs)

For U.S. taxpayers, all assets held outside the U.S. should be reported annually. If a U.S. resident fails to declare an overseas account that exceeds a certain amount, he may face a penalty in $ 10,000. If a U.S. resident did not report it yet after IRS noticed, the penalty can be as high as $50,000. If it is underreported, the penalty can be as high as another 40 undeclared asset consolidation penalty. Those terms in FATCA were made on March 18, 2010, and were effective in 2014.

So far, 113 countries and regions have joined, including China.

https: //www.china-briefing.com/news/china-agrees-fatca-compliance/

After FATCA Grace Period Ends, IRS to Freeze Foreign Bank Accounts Starting in 2020

Form to disclose: Form – 8938, Statement of Specified Foreign Financial Assets

This requirement is in addition to the long-standing requirement to report foreign financials accounts on FinCEN Form 114, Report of Foreign Bank and Financial Accounts (FBAR)

Reporting Threshold

• Taxpayers living abroad
  • Married Filing Jointly
    • The total value of designated overseas financial assets exceeds $ 400,000 on the last day of the tax year, or exceeds $ 600,000 at any time during the year.
  • Single or file separately from your spouse
    • The total value of designated overseas financial assets exceeds $ 200,000 on the last day of the tax year, or exceeds $ 300,000 at any time during the year.
• Taxpayers living in the US
  • Married Filing Jointly
    • The total value of designated overseas financial assets exceeds $ 100,000 on the last day of the tax year, or exceeds $ 150,000 at any time during the year.
  • Single or Married but file separately from your spouse
    • The total value of designated overseas financial assets exceeds $ 50,000 on the last day of the tax year, or exceeds $ 75,000 at any time during the year.

FBAR (Foreign Bank Account Reporting)

• A US person, as mentioned above, must file FBAR when they have a financial interest or authority account over a financial account located outside the United States. However, they will only need to file if the foreign accounts exceed $10,000 at any time during the calendar year they are filing taxes for.

FBAR Penalties

• Taxpayers who did not file an FBAR but were required to may be subject to civil and criminal unless there is a reasonable cause.

US Person

A U.S. person for tax purpose includes any of the following:

1. A U.S. Citizen, which is anyone with a U.S. passport
2. A green card holder, or
3. A U.S. resident for tax purposes – most commonly defined as someone who spends more than 183 days (31 days during the current year and 183 days during the 3 year period that includes the current years and the 2 year immediately before that: All the days you were present in the US in the current year, and1/3 of the days you were in the US in the first year before the current year, and 1/6 of the days in the US in the second year before the current year) in the US under the Substantial Present Test. A U.S. resident for tax purposes is commonly referred to as a resident alien.

Multi-States Tax Filing

• If You Commute to Another State to Work
  • You’d file a resident tax return in your home state and a nonresident tax return in your work state if you commute to another state to work. All your income from all sources goes on your resident tax return, even the income you earned in your “work” state, but you would only include the wages you earned in your work state on your nonresident state tax return for that one. (Tips: This doesn’t necessarily mean that you’ll take a double tax hit on your out-of-state income. Many states provide tax credits on resident returns for taxes you paid to other jurisdictions. The taxes you pay to your work state are effectively subtracted from the income you report in your home state.
• Reciprocal Agreements
  • Allow you to work in a neighboring state tax-free. You’ll only have to pay taxes to your home state if you alive and work in two states that have this type of agreement, but you must file an exemption form with your employer to avoid taxes being withheld from you pay by our work state. Each state has its own form for this, so check with your employer to make sure you get the correct one.
  • States with reciprocal agreements with other jurisdictions: Arizona, Illinois, Indiana, Iowa, Kentucky, Maryland, Michigan, Montana, New Jersey, North Dakota, Ohio, Pennsylvania, Virginia, West Virginia and Wisconsin.
  • Two of Pennsylvania’s neighboring states do not offer income tax reciprocity: Delaware and New York. This means, for example, a Pennsylvania resident working in one of those states must file a return in that state, pay the tax, and then take a credit on his or her Pennsylvania return.