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27 FAQS about changes the CARES Act made to taxes in 2020
27 FAQS about changes the CARES Act made to taxes in 2020
The Coronavirus Aid, Relief, and Economic Security (CARES) Act is a $2.3 trillion relief bill that was instituted to stabilize the economy and prevent Americans from suffering financial distress following the coronavirus pandemic. The CARES Act provides payments to individuals, forgivable loans to small businesses, penalty-free retirement distributions for those who need them, and tax relief for many individuals. Read on to learn more about how the CARES Act may affect your taxes this year.
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1. WHAT TAX RELIEF DOES THE CARES ACT PROVIDE?
The CARES Act provides a variety of tax relief options for individuals and businesses to help ease the financial burden caused by the global pandemic. A variety of measures were put in place to eliminate certain payments of taxes, fees, and penalties and to defer payments. Tax relief provisions in the CARES Act include:
• Postponed tax filing and payment deadline for income taxes.
• Deferral of employer-side Social Security taxes and self-employment taxes.
• Refundable payroll tax credit of up to 50% per employee.
• Recovery rebate payments to individuals and families.
• Eliminated penalties on qualified retirement plan distributions made in 2020.
• Eliminated required minimum distributions from retirement accounts in 2020.
• Increased interest deduction.
• Increased charitable tax deduction.
• Increased business loss deduction cap.
• Waiver of certain excise taxes.
2. WHAT IS THE DEADLINE TO FILE INCOME TAXES?
The federal income tax filing deadline has been delayed until July 15, 2020, three months after the original deadline date. People will have an extra three months to file their taxes. Additionally, this change gives people an extra three months to pay their taxes without incurring any extra interest or penalties. This change applies to federal income taxes. Many states have passed similar rules that have delayed state income tax returns to the new federal deadline. However, some states are still requiring individuals and businesses to pay any taxes owed based on the previous deadline of April 15, 2020.
3. SHOULD I WAIT TO FILE MY TAXES?
Whether or not you should wait to file your taxes depends on several factors, such as whether your recovery rebate may be impacted negatively if you file now, whether you expect to receive a refund or owe taxes, and whether you have other financial issues to consider.
4. WHAT ARE THE RECOVERY REBATES?
The recovery rebates or economic impact payments are refundable tax credits that most eligible people are receiving through a direct deposit or paper check to help stimulate the economy. They are technically tax credits for the 2020 taxable year, but they are being advanced to people now to help offset the negative financial effects of the coronavirus pandemic. The recovery rebates are up to $1,200 for single tax filers or $2,400 for married couples. Another $500 per dependent child age 16 or younger is also available.
5. WILL I RECEIVE AN ECONOMIC STIMULUS CHECK?
A person’s adjusted gross income for the tax year 2019 is used to determine eligibility for the recovery rebate. If the person did not file a 2019 tax return, his or her 2018 adjusted gross income on his or her 2018 tax return is used. To be eligible for an economic stimulus check, you must meet the following guidelines:
• You filed a 2018 or 2019 income tax return if you were required to do so.
• Your adjusted gross income does not exceed the threshold.
• You have a valid Social Security number. To receive your rebate by direct deposit, the IRS needs to have your current bank account infor-mation. If you used the same bank to direct deposit your tax refund in 2019 or 2018, the IRS will already have this information and you will not need to take any further action. If you did not file taxes for these years or did not receive a refund and are otherwise eligible (such as if you had a low income or receive Social Security benefits), you will need to update the IRS with your current bank account information on the IRS website. Even if the IRS technically has your bank account information because you are on a tax repayment plan with the agency, you will still need to provide bank account information and authorize the deposit of funds into your account. If you have moved since your last income tax return filing and anticipate receiving a paper check, update the IRS with your current mailing address.
6. HOW MUCH WILL MY RECOVERY REBATE BE?
The maximum recovery rebate for individual filers with income up to $75,000 is $1,200. The maxi-mum recovery rebate for head of household filers with income up to $112,500 for head of household filers is $1,200. The maximum recovery rebate for married filers is $2,400 for a couple with income up to $150,000. For any of these above situations, a person can also receive $500 per dependent child under the age of 16. There is no maximum number of children. The recovery rebate amount begins to phase out after filers meet the incomes described above. The rebate is phased out once filers reach the following thresholds:
• $99,000 for individual filers
• $146,500 for head of household filers with one child
• $198,000 for married filers with no children
• $218,000 for married filers with two children The credit phases out at a rate of 5% of your adjusted gross income over the threshold amounts for every $1,000 above this amount. Therefore, the amount of your rebate is reduced by $50 for every $1,000 you make above the threshold.
7. WHEN WILL I RECEIVE MY REBATE?
Millions of Americans have already received their rebates. Millions more were notified that their paper checks would be mailed beginning April 24, 2020. However, it is anticipated that it will take several more months before all of the rebates are delivered. The paper checks will be mailed out in order of adjusted gross income from lowest to highest, so people with lower incomes will receive their checks faster than those with higher incomes.
8. CAN I FILE TAXES NOW TO RECEIVE MY REBATE?
Yes. If you have not filed taxes in 2018, you can file taxes now to make yourself eligible for the rebate. The IRS encourages you to do so.
9. WHICH PARENT RECEIVES THE DEPENDENT REBATE AMOUNT?
If parents are divorced or were never married, the parent who claims the child on his or her tax return will receive the dependent rebate amount.
10. WILL THE ECONOMIC STIMULUS CHECK BE TAXED ON MY TAX RETURN NEXT YEAR?
No. Your tax refund will not be reduced by the amount of your economic stimulus check next year. The payment is technically a 2020 tax credit. It is just advanced to you sooner so that you can use it sooner.
11. WHAT IF MY INCOME INCREASES IN 2020 AND I RECEIVE A REBATE FOR MY 2018 OR 2019 INCOME?
If your income increases in 2020 so that it exceeds the maximum income limit, you can still receive your recovery rebate based on your 2019 or 2018 adjusted gross income. You will not be required to pay back the rebate when you file your 2020 income tax return.
12. WHEN DO EMPLOYERS HAVE TO PAY THE EMPLOYER-SIDE LIABILITY OF FEDERAL SOCIAL SECURITY TAXES UNDER THE CARES ACT?
Most employers are required to take out 6.2% of an employee’s gross wages for Social Security taxes. Employees must also pay a portion of these taxes from their remaining wages. Employers are typically required to submit these withdrawn amounts to the government. However, the CARES Act allows employers to defer payments of their employer-side Social Security tax. Fifty percent of their liability can be deferred until Dec. 31, 2021. The remaining balance must be paid by Dec. 31, 2022. This option is available without any penalty as long as the amounts are paid by the deadlines listed above. However, the option is not available if the employer received a forgivable loan from the Small Business Administration or the US Treasury Program Management Authority. All employers other than those who received a forgivable loan are eligible for the deferral. Additionally, employers who have received a Paycheck Protection Program loan that has not been forgiven can defer the payment of these taxes until the date it receives notice the loan is forgiven and will not incur penalties for failure to deposit or pay. The amounts that had already been deferred are subject to the same payment dates as other deferred payments.
13. CAN SELF-EMPLOYMENT TAXES BE DEFERRED?
Like with the employer-side Social Security taxes, self-employment taxes on net earnings can also be deferred so that 50% is paid by Dec. 31, 2020 and 50% is paid by Dec. 31, 2022. As long as payments are made according to this schedule, self-employed individuals will not face a failure to deposit or pay penalty.
14. WHICH EMPLOYERS CAN RECEIVE A 50% PAYROLL TAX CREDIT?
The CARES Act provides a credit for eligible employers equal to 50% of qualified wages. Eligible employers include:
• Employers in business in 2020.
• Employers whose business operation is fully or partially suspended due to COVID-19 govern-ment shelter-in-place orders or whose gross receipts declined by 50% or more from the same quarter last year because of the COVID-19 pandemic. The refundable credit for each employee is 50% of the employee’s qualified wages, subject to a maximum of $10,000, which can result in a credit of $5,000 per employee. Employers with more than 100 employees can claim the credit for employees who were retained but are unable to cur-rently work because of the crisis. Employers with 100 or fewer employees can claim the credit for all employees.
15. IF AN EMPLOYER RECEIVES A LOAN FROM THE PAYCHECK PROTECTION PROGRAM, CAN IT TAKE THE PAYROLL TAX CREDIT?
No. If an employer receives a Paycheck Protection Program loan, it cannot take the 50% payroll tax credit.
16. HOW ARE NET OPERATING LOSSES TREATED UNDER THE CARES ACT?
The IRS has issued guidance on tax relief for businesses, individuals, trusts, and estates with net operating losses. These relief measures include:
• The carryback period of net operating losses that occurred between Dec. 31, 2017 and Dec. 31, 2020 is waived.
• Certain forms of foreign income that are usually subject to transition tax are disregarded as income during the five-year carryback period.
• Businesses are given the option to waive, reduce, or revoke an election to waive a carryback period for taxable years that began before Jan. 1, 2018 and ended after Dec. 31, 2017.
• Businesses are given a six-month extension to file for a carryback of a net operating loss that ended on or before June 30, 2019.
17. WHAT ABOUT TAX CREDIT CARRYFORWARD AND ALTERNATIVE MINIMUM TAX LIABILITY AFFECT ME?
Businesses that have liability for tax credit carryforwards and alternative minimum tax can make claims for larger refundable tax credits than they would have been able to before passage of the CARES Act.
18. ARE ANY EXCISE TAXES WAIVED UNDER THE CARES ACT?
Excise tax for alcohol used to make hand sanitizer is waived for the 2020 tax year. Aviation excise taxes are also waived until Jan. 1, 2021.
19. HOW DOES THE CARES ACT AFFECT DEDUCTIONS FOR CHARITABLE GIFTS?
The CARES Act modified charitable gift tax deductions in three main ways:
1. There is now an above-the-line charitable gift tax deduction of $300 for cash donations that you can claim even if you do not itemize your deductions.
2. You can make a qualified charitable distribution of $100,000 or less from your IRA in 2020 to a qualified charity and it will not be treated as taxable income.
3. The limits on charitable contributions have now been raised. Typically, the individual limit for filers who itemize their deductions is 60% of their adjusted gross income. This is now 100% of AGI. Corporations’ charitable contribution limits have also been increased from 10% of their taxable income to 25% of their taxable income.
20. WHAT IS THE EXPANSION OF THE INTEREST DEDUCTION?
The net interest deduction limitation typically limits the ability of a business to deduct interest paid on its tax returns to 30% of earnings before interest, tax, depreciation, and amortization. However, this has been adjusted to 50% for 2019 and 2020.
21. HOW IS THE BUSINESS LOSS DEDUCTION CAP AFFECTED?
Pass-through entities, sole proprietors, and other non-corporate taxpayers will not be subject to the limits on the deductibility of excess losses mandated in the Tax Cuts and Jobs Act for tax years from 2018 to 2020. This will allow businesses to amend their previous returns and potentially receive refunds by claiming these full deductions.
22. DO I HAVE TO TAKE REQUIRED MINIMUM DISTRIBUTIONS FROM MY RETIREMENT ACCOUNTS IN 2020?
No. You do not have to take RMDs in 2020 under the CARES Act. If you already received an RMD, you may be able to repay it to your plan without being taxed on the RMD.
23. WILL I OWE TAXES OR PENALTIES ON A DISTRIBUTION FROM MY RETIREMENT PL AN UNDER THE CARES ACT?
If you are under age 59 and one-half, you can take a distribution from your retirement plan under the CARES Act without paying a 10% early withdrawal penalty or 20% mandatory income withhold-ing fee if you meet one of the following conditions:
• You or your spouse was diagnosed with COVID-19.
• You have suffered financially because of the COVID-19 pandemic, such as being laid off or having reduced hours. You can recontribute your funds to your plan within the next three years if you would like to, regardless of the year’s contribution limit. Whether you will be taxed on your distribution depends on whether you were taxed on the money you contributed to your account. You will be taxed on earnings.
24. HOW DOES THE CARES ACT AFFECT QUALIFIED MEDICAL EXPENSES?
Funds can be withdrawn tax-free from Health Savings Accounts (HSAs), Flex Spending Accounts (FSAs), and Health Reimbursement Arrangements (HRAs) to pay for qualified medical expenses. Expenses for over the counter medication are now qualified medical expenses. The CARES Act eliminates the restriction that only prescription medications qualify. Payments for menstrual care products are also qualified medical expenses.
25. ARE UNEMPLOYMENT BENEFITS TAXABLE?
Yes. Unemployment benefits are taxable and will continue to be taxable. The CARES Act grants $600 in weekly unemployment benefits to recipients in addition to the normal benefit. These extra funds are also subject to tax.
26. ARE STUDENT LOAN PAYMENTS THAT MY EMPLOYER PAYS CONSIDERED PART OF MY TAXABLE INCOME?
No. The CARES Act allows employers to contribute a maximum of $5,250 on an annual basis to repay an employee’s student loans. This contribution is tax-free to the employee and can be made to the student loan servicer or directly to the employee. The provision applies to student loan payments the employer made after the CARES Act was enacted and until Dec. 31, 2020.
27. WHERE CAN I FIND OUT MORE?
The CARES Act is a large bill that contains various provisions that may affect your tax situation. Speak to your tax adviser or a tax attorney to learn how these recent changes may affect you and to receive tax planning advice.
The period between Memorial Day and Labor Day is historically the most dangerous time of year for teen drivers. Some research shows up to 30% of all teen driving fatalities occur during the summer months. Teen drivers lack experience, and the summer months provide multiple reasons for increased risk. Not only is there more daylight and warmer weather, but most teens are out of school and have more free time to be behind the wheel. Here are five safety tips for your teen driver to practice, not just in the summer months but all year long. 1. Avoid Distraction . Research shows as high as 60% of all teen vehicle crashes involve driver distraction. One common misconception is that cell phones are the number one cause of distraction for teen drivers but that is actually not the case. Other passengers create more distractions for teen drivers than any other source. 2. Buckle Up . It is discussed so often that it may seem trite but seatbelt use is proven to reduce fatality rates in motor vehicle accidents. but data shows buckling up can reduce the risk of fatal injury by as much as 45%. 3. Impaired Driving . As high as 15% of all teen driving fatalities involve a blood alcohol content of more than twice the legal limit. 4. Limit Passengers. Most states, including Alabama, have graduated license laws restricting the number of passengers in vehicles operated by teen drivers. Literally all available data associates fewer passengers with lower fatality rates in motor vehicle accidents involving teen drivers. 5. Reduce Nighttime Driving. The fatal crash rate of 16-19-year-olds is nearly 400 times higher at night than during the day.
Identity theft affects millions of people each year and can cause serious harm. Protect yourself by securing your personal information, understanding the threat of identity theft, and exercising caution. Here are 10 things you can start doing now to protect yourself and your loved ones from identity theft: Protect your Social Security number by keeping your Social Security card in a safe place at home. Don’t carry it with you or provide your number unnecessarily. Be careful when you speak with unknown callers. Scammers may mislead you by using legitimate phone numbers or the real names of officials. If they threaten you or make you feel uneasy, hang up. Create strong, unique passwords so others can’t easily access your accounts. Use different passwords for different accounts so if a hacker compromises one account, they can’t access other accounts. Check out the Federal Trade Commission’s password checklist for tips. Never give your personal or financial information in response to an unsolicited call or message, and never post it on social media. Shred paper documents that contain personal information, like your name, birth date, and Social Security number. Protect your mobile device from unauthorized access by securing it with a PIN, adding a fingerprinting feature, or using facial recognition. You can also add a password and adjust the time before your screen automatically locks. Regularly check your financial accounts for suspicious transactions. You can also request and check a free credit report from each of the three credit bureaus every year: TransUnion , Equifax , and Experian . Avoid internet threats by installing and maintaining strong anti-virus software on all your devices—including your mobile device and personal computer. Use a virtual private network (VPN) to stay safe on public Wi-Fi. Do not perform certain activities that involve sensitive data, like online shopping and banking, on public Wi-Fi networks. Protect yourself on social media by customizing your security settings and deleting accounts you no longer use. Also, double-check suspicious messages from your contacts, as hackers may create fake accounts of people you know. Never click on any link sent via unsolicited email or text message—type in the web address yourself. Only provide information on secure websites.
Every accident case is different. Some settle more quickly than others. However, it is not uncommon, for a personal injury case to take a year or more to resolve after the case has been filed in court. Evaluating the Injury Prior to filing a lawsuit, it takes time to determine the full extent of your injuries. Doctors are often unable to give an opinion about the seriousness of an injury until your condition has stabilized. In serious injury cases, it may even take a year after the accident before your doctor can say whether or not your injuries are permanent. It is extremely important to take the necessary time to fully evaluate your injuries. You have only one chance to prove the extent to which you have been harmed. Once you accept a settlement offer, that decision is final. You cannot go back and ask for more money if you later find out your injuries are more serious. An experienced personal injury attorney knows how to keep your case moving through the legal system. Your personal injury case may move through these stages: 1. Written Discovery The written discovery period can last over six months. You will be asked to answer written questions (interrogatories) under oath. You will also be asked to produce documents or authorize others to produce documents such as accident reports and medical records. 2. Depositions During a deposition, you will be asked questions under oath. A court reporter types a record of everything that is said. Not only will you be questioned about the accident and your injuries, you will be asked questions about what your health, education, and work were like before the accident. 3. Mediation and Settlement The Court almost always requires a settlement conference or mediation before personal injury cases can go to trial. At mediation, a neutral trained mediator goes over the issues and evidence with the parties to help guide them toward a settlement agreement. 4. Trial If your case does not settle and goes to trial, a jury decides what your injury is worth. It can take eighteen months or longer to get the trial scheduled. Once the trial is over, there may be further appeals and motions. It's possible for the parties to settle the case during trial or even after trial in order to end an appeal. Your best strategy is to contact an attorney with experience in handling personal injury cases. Your attorney can give you an estimate about the length of time it takes to resolve your type of case. Also, ask your attorney to give you frequent reports on the status of your case so you know that your case is making its way through the legal process. It's understandable that you may be frustrated at the speed your case seems to be moving. However, you should never rush to take the first settlement offer made by an insurance company. The first offer is rarely your best settlement offer. .
Distracted driving has been on the increase for the last several years and continues to be one of the leading causes of vehicle accidents throughout the United States. If you are texting and driving down the highway at 55 mph, that’s like traveling the length of a football field with your eyes closed. You can only drive safely when your full attention is on the road. Any activity that isn’t related to driving is a potential distraction and increases your risk of a collision. While most research points to a mobile phone as the number one culprit, it is far from the only activity potentially stealing a driver's attention. Eating or drinking, grooming, radios, other passengers - especially children, and even pets can also be significant factors. Distracted driving accidents are preventable 99% of the time. Driving can become mundane at times, but we all must remember when driving we have an obligation to the safety of not only ourselves but those who ride with us and other drivers we share the road with. Some studies show listening to podcasts or certain types of music can enhance our concentration. It’s important to practice safe habits behind the wheel. You want to make sure that your passengers know how serious you are about driving without distractions. One of the most effective ways to lead is through example. Be a good example for your friends and family by avoiding driving while you’re distracted.
We see this question all the time. The injured party doesn’t want to use their own health insurance to pay for an injury. They believe it is the responsibility of the person at fault to pay for their medical bills. That may feel like the right position for an accident victim to take but the truth is, most of the time the injured party will end up with a larger settlement if they do, in fact, use their own medical benefits. Here's why; Health insurance companies have a negotiated price for medical services that is about 15 percent less than what people have to pay who don’t have health insurance. If your medical bills are $50,000.00 but Blue Cross Blue Shield pays $15,000.00 and the person who caused the wreck has $50,000.00 in liability coverage, that leaves $35,000.00 available for the injured party versus $0.00. Generally speaking, Blue Cross Blue Shield will reduce the $15,000.00 to $10,000.00 leaving $40,000.00 available. The point is that there’s more money available when you take advantage of your healthcare negotiated rates whether it’s United Health Care, Medicare, Medicaid, or Blue Cross Blue Shield. More money is better. Using your health insurance to pay your medical bills if you are injured, will almost always end up maximizing your settlement.
Once you reach the age of 65 you have many more options than before. As you know if you go on Medicare and you are under the age of 65 your options for health plans are limited. When you turn 65 you will have another open enrollment period to sign up for any plan you wish to get. In other words, just because you are already on Medicare does not prohibit you from having all the options a person not on Medicare and turning 65 would have.
This is one of the questions we get asked the most. In most cases, the answer to this is “no”. When you turn 65, if you are still working and on your employer’s health insurance plan you probably will not need Medicare Part B. I say probably because most employer plans do not file on Medicare if you have a claim. Because you have to pay a premium for Part B, Medicare does not require a person to sign up for Part B as long as you are on your employer’s plan. Also, because the rules can differ for companies with less than 20 employees, the safest thing to do is check with the benefits coordinator at your place of employment for guidance or call us at our office.
Social Security: 3 main reasons why the Government can deny Disability Benefits
For many working Americans, when the unexpected happens and they can no longer work due to a serious medical condition, Social Security Disability Insurance (SSDI) benefits can be a financial lifeline. Most American workers contribute to Social Security through federal payroll taxes. Social Security is designed for income during retirement years however if an individual’s working years are cut short by a severe, long-term illness or injury, they may need income before reaching retirement age. For many who find themselves in these circumstances SSDI provides monthly financial assistance. Seven facts every American should know about the SSDI program 1. SSDI is coverage that workers earn. If an individual has paid enough Social Security taxes through their lifetime earnings, SSDI is intended to provide support by replacing some of their income when they become disabled and unable to work. 2. The Social Security Administration (SSA) has a strict definition of disability. The SSA considers a person disabled if they can’t work due to a serious medical condition that is expected to last at least one year or result in death. SSDI is intended as a long-term solution and is not intended to offer temporary or partial disability benefits. 3. Disability can happen to anyone at any age. Serious medical conditions, such as cancer and mental illness, can affect the young and elderly alike. Studies prove one in four 20-year-olds will become disabled before retirement age. As a result, they may need to rely on Social Security disability (SSDI) benefits for income support. 4. SSDI payments help disabled workers to meet their basic needs. SSDI is not and was never intended to be a full wage replacement. The average monthly Social Security disability benefit is $1,280, as of April 2021, which is intended to allow an individual who has become disabled to meet their basic needs. 5. Social Security works aggressively to detect and prevent fraud. Every American worker who pays federal taxes invests in SSA. The agency is committed to protecting their investment by taking a zero-tolerance approach to fraud. The agency claims a fraud incidence rate that is a fraction of one percent. 6. SSA helps people return to work without losing benefits. Often, people would like to re-enter the workforce. However, many worry they will lose disability benefits if they try working again. They may also fear losing benefits if they are unsuccessful in returning to work. The agency has many programs designed to connect an individual to free employment support services while helping them maintain benefits, such as health care. 7. Millions of disabled Americans depend on SSDI benefits. Nearly 10 million disabled workers and their spouses and children receive benefits through SSA.
A circuit judge in Sarasota ruled Monday that the verdict in a legal malpractice case against the Morgan & Morgan law firm should stand. The judge also denied Morgan & Morgan’s motion for a new trial and another motion to reduce the $5 million award determined by the jury. Attorney Donald St. Denis of St. Denis & Davey in Jacksonville, who represented the plaintiffs in the malpractice lawsuit, said Friday he has a hearing scheduled Tuesday in Sarasota on a motion to award his firm $1.6 million in attorney’s fees and costs. “We’ve been working on this for two years. I’ve got a ton of time in this case,” he said Friday. St. Denis made offers on behalf of his clients in August 2016 and again in January 2017 for $2.5 million and $4 million, respectively, to settle the malpractice suit before going to trial, but Morgan & Morgan’s counteroffer was only $1,000, he said. Morgan & Morgan intends to appeal the jury’s verdict. John Morgan “This case is a long way from over,” John Morgan said Friday in an email response. “We defended this case because we think we are right. And we will continue fighting it because we still believe we are right. We fully expect to win outright on appeal and have a judgment in our favor entered by the appellate courts.” St. Denis represented Shawna and Rock Pollack in the malpractice action related to Morgan & Morgan’s handling of a personal injury case the couple filed after their child was permanently injured during birth. On Oct. 17, a jury in circuit court in Sarasota County found that Morgan & Morgan attorney Armando Lauritano was 100 percent responsible for Shawna and Rock Pollock losing their rights to a medical malpractice claim against a Sarasota obstetrics practice, a nurse midwife and the hospital where their child was born. The case began Nov. 2, 2006, when Shawna Pollock was admitted to Sarasota Memorial Hospital to give birth. After she was given a hormone to induce labor, the unborn infant began to experience slowed fetal heartbeat and Pollock began writhing in pain. By the time an emergency cesarean section was performed, Pollock’s uterus had ruptured, depriving the fetus of oxygen, which caused permanent brain damage. After the birth, the Pollocks contacted Morgan & Morgan. An investigator from the firm met the couple at Ronald McDonald House, where they were staying while their infant son was in All Children’s Hospital in Tampa. On Feb. 17, 2007, the Pollocks agreed to be represented by Morgan & Morgan. They agreed to pay the firm up to 40 percent of a recovery up to $1 million, 30 percent between $1 million and $2 million and 20 percent of recovery in excess of $2 million. St. Denis argued to the jury that Morgan & Morgan was focused on collecting a large fee for the child’s brain injury claim to the point that its representative failed to provide the required presuit notice of claims for injuries sustained during the delivery by Shawna Pollock, including that she no longer is able to have children. After it became clear that the baby would qualify for no-fault benefits from the Florida Birth-Related Neurological Injury Compensation Association, and after the statute of limitations period for submitting notice the Pollocks intended to seek compensation for their personal loss had expired, Morgan & Morgan withdrew from representing the Pollocks. The jury found that the OB-GYN practice, the nurse midwife and Sarasota Memorial Hospital were negligent in the care of Shawna Pollock. The medical practice and nurse midwife were found by the jury to be liable for $4.5 million in damages and the hospital was found liable for $500,000 in damages, if the Pollocks had not lost their rights to sue for damages. In its $5 million verdict, the jury further found that Lauritano was negligent in his handling of the Pollocks’ interests, that the Pollacks did not freely and intentionally give up their right to seek compensation from the physicians and hospital and that Lauritano was liable for the loss they incurred. original article https://www.jaxdailyrecord.com/article/court-upholds-dollar5-million-malpractice-verdict-against-morgan-and-morgan