As a result of the stimulus package, Americans can expect direct payments of $1,200 each for individuals whose adjusted gross income is $75,000 or less, and $2,400 for married couples whose income is $150,000 or less, as well as an additional $500 per child, according to CNN.
“It’s merely a replacement for money that they’re losing because of the economic situation that we’re in,” said Denny, a Santa Clarita CPA. “It will be very useful to a lot of people, especially those who live paycheck to paycheck and for whom being furloughed is a huge, huge problem.”
Though Denny pointed out he does not necessarily advise saving funds received from the stimulus package, he noted that each person’s financial needs are different.
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“There are some people that will need it, some people that will not,” he said. “You do have to manage your tax flow very carefully in these times, so it may be a consideration to do minimum payments on some of your installment debt if you anticipate that cash flow is going to be a problem further down the road. Basically just use it as you need it.”
The first priority during these challenging times is food, water and shelter, according to Denny, who cautioned residents about delaying housing payments.
“Obviously, first things first — food, water and shelter,” he said. “If there’s a forbearance on the payment of the shelter part, fine, but do bear in mind that that’s going to come due at some point.”
The Santa Clarita CPA firm Denny & Company, LLP was established in 1984, and is a full-service firm of Certified Public Accountants in Santa Clarita, including Partners Matt Denny and Carolyn Denny. The Santa Clarita accountants work with small businesses and individuals, specializing in catering to each client’s unique needs and desires using a flexible approach. As a CPA in Santa Clarita, Matt Denny shares his knowledge and experience regularly on “Common Ground” on KHTS Radio. Those looking for the best CPA in Santa Clarita or a “CPA near me” can contact Denny & Company, LLP for more information today.
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