COVID Stimulus and tax law changes, unemployment

reckedracing

TTIWWOP
VIP
Public service announcement-

I've been doing webinar's and research on this (and the law changes and stim packages) all day.
If you have a business in a state that been declared a disaster do the SBA application asap.
3.75% fixed loan, no early repayment penalty, could take 6 weeks to turn around the application and get the money, so file today even if you aren't sure if you will need it, better safe than sorry. (some businesses might qualify for loan forgiveness, but there are restrictions and its definitely not a free money grab)

The stim bill passed today. $1200/$2400 for MFJ, +$500 for each kid, income thresholds around $75k each $150 joint.
based on 2019 tax returns, or 2018 if 19 isn't filed yet. If your income JUMPED for 2019, maybe hold off on filing 2019 for now

Tax deadline for IRS is now July 15th, as are IRA contribution deadlines.

up to $600 a week in extra unemployment, even for "gig economy" workers who would otherwise not qualify.
if you are out of work (or hours reduced) file for unemployment asap. no longer a one week waiting period.

CARES Act Goes to the White House

https://www.steptoe.com/images/content/2/0/v4/200070/CARES-ACT-FINAL-TEXT.pdf
 

Briansol

Admins
Admin
VIP
I heard there may be a pay back if you go over? Pretty sure we're under for 2018 but will be over for 2019. Can we stop the money from coming? from what I heard, it will direct deposit if you had one on file for 2018 to that account.

and are the figures gross or AGI?
 

reckedracing

TTIWWOP
VIP
I have heard that, but have also heard that it will be a one way reconciliation... ie: if you got too little money they would allow you to claim the additional refund, but if you get to much you don't have to pay it back. the actual credit will be based on 2020 income figures I believe.

I would let it ride until you know for certain one way or another, but I'd rather get the money and owe it back.
 

TurboMirage

YEEAAAHHH
VIP
This was interesting thank you!

I filed unemployment for the 10 hours a week I am losing going forward and the money figure looked high. this would kinda make sense.
 

D16Civic

Matt
VIP
Any idea on what the cutoff for kids is? I heard under 17, but I'm not sure if that includes 17. I know we couldn't claim the full child tax credit this year so my thinking is he may not count for the $500, which is fine. But he works and filed returns the last 2 years, so would he get the $1200? My guess would be probably not, as he's a minor. If that's the case, 17 isn't a kid, or an adult.

As far as unemployment goes, he's technically laid off because the place is closed. He doesn't work enough to get much, but then the $600 isn't income based, so there's that aspect to consider.

I'm laid off now for a few weeks, maybe a month, depending. State pays $362/week. FCA makes up the difference to 90% of my base bay. With the extra $600 tacked on, I'll be making as much as I would working 15 or so hours of OT every week. It's really kinda crazy.

I know there are a lot of people really in rough positions that this stimulus will hopefully get through the tough times.
 

BigJ

I'm just about that action Boss.
VIP
My dad is self employed and has his company setup as am s Corp with no employees but himself. He's a master carpenter and all his job sites are closed. Which should he do?
 

BigJ

I'm just about that action Boss.
VIP
Also we qualify with our 2019 return as my wife didn't work (baby) for a few months but def won't in 2020. How should we handle the check?
 

Matts96HB

.
Moderator
VIP
I've already filed owe money on my taxes this year. Do I still have to pay the dudes in black suits on April 15th?
 

|Chaz|

Well-Known Member
VIP
Well at least the amount I'll get for unemployment will go up. I think we made 160k combined so I don't think we'll be getting anything.
 

reckedracing

TTIWWOP
VIP
Any idea on what the cutoff for kids is? I heard under 17, but I'm not sure if that includes 17. I know we couldn't claim the full child tax credit this year so my thinking is he may not count for the $500, which is fine. But he works and filed returns the last 2 years, so would he get the $1200? My guess would be probably not, as he's a minor. If that's the case, 17 isn't a kid, or an adult.

As far as unemployment goes, he's technically laid off because the place is closed. He doesn't work enough to get much, but then the $600 isn't income based, so there's that aspect to consider.

I'm laid off now for a few weeks, maybe a month, depending. State pays $362/week. FCA makes up the difference to 90% of my base bay. With the extra $600 tacked on, I'll be making as much as I would working 15 or so hours of OT every week. It's really kinda crazy.

I know there are a lot of people really in rough positions that this stimulus will hopefully get through the tough times.
if he filed, he probably filed as a dependent of another, so likely would not be eligible for the $1200 himself.
I don't know the rules for what age the child needs to be to get the extra $500
Would have to research that

My dad is self employed and has his company setup as am s Corp with no employees but himself. He's a master carpenter and all his job sites are closed. Which should he do?
he should file for unemployment under the Disaster Assistance, and most likely also apply for the SBA loans.
it sounds like some of the loan might be eligible to be converted into a forgivable grant to cover thinks like rent, insurance, and payroll.
the payroll is the biggest factor and we don't know if officer's comp qualifies for that grant forgiveness

Also we qualify with our 2019 return as my wife didn't work (baby) for a few months but def won't in 2020. How should we handle the check?
you'll likely get direct deposit if that's how your tax refund was issued, and when you say how should we handle it??
Spend it or save it lol. I think those are the only 2 options here.

I've already filed owe money on my taxes this year. Do I still have to pay the dudes in black suits on April 15th?
tax payment (and filing deadline) has been pushed to July 15th to the feds.
I'd recommend paying asap so you don't forget, but technically you now have another 3 months to pay
 

corvetteguy78

Well-Known Member
VIP
Arethe $150,000, $75000 income levels based on your Gross Pay or Adjusted Gross Income. Our W2's are like $189,000 but our AGI is $149,000
 

B16

Super Moderator
VIP
Also heard it is AGI. That close to the max you'll probably get a $5 check.
 
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