Coronovirus tax stimulus

Hey, everyone! You know those stimulus payments we’re all supposed to get?

(putting on CPA hat)

PLEASE understand that these are pre-funds. Just like the 2009 stimulus package, the money sent to you represent your own taxes. You’re just getting an advance on your 2020 tax refund.

I’ve just found the actual language of the bill here, thanks to a friend:  https://crsreports.congress.gov/product/pdf/IN/IN11282

 

 

And a more detailed explanation, now that it’s finalized, at this article:

https://www.forbes.com/sites/advisor/2020/03/27/your-guide-to-the-federal-stimulus-package/#2f7fbda62711

The above has more details, and indicates there will be an actual credit on the 2020 tax return, so if things don’t change between 2019 and 2020 for your situation, the money you get now SHOULD be a wash with your year end taxes. However, if things change (i.e. you make more money and go above the threshhold, you don’t have as many dependents, etc.) then you would be liable for the difference.

The government is not GIVING us money. They are giving us an advance on our own money. However, we wouldn’t have this money back without this credit passing.

Please plan appropriately so you aren’t caught short in April 2021.

Pre-fund cannot be garnished for things like past student loans or past taxes due. People should get payment even if they had no income in 2018/2019. SSI and SSDI recipients are included. Children over 17 that are counted as dependents on their parents return are not getting a payment.

NOTE:  If you are 17 or over and you and your parents have’t filed for 2019, and you’ve earned money in 2019, it MAY be useful to quickly file 2019 as not being a dependent IF it makes sense tax-wise.

This payment does not count against your assets for SSDI measuring purposes.

The government will look at your 2019 income tax return first for data, than 2018 if 2019 is not yet filed.

They need to have either direct deposit or a recent address, make sure they have it.

This is not taxable income.

 

More information:

Unemployment benefits: Apply now if you’ve lost work either as an employee OR as self-employed/gig worker. Each state has different processes for this, but you are eligible immediately without the normal waiting period. Unemployment benefits ARE TAXABLE INCOME – plan accordingly.

Self-employed are now able to apply online for unemployment in NYS, from what I’ve heard. Other states may also be set up now.

 

(taking off CPA hat)

 

• SBA Forgivable Loans Up to $10,000,000
• SBA Emergency Grant Up To $10,000
• Withdraw Retirement Penalty Free Up to $100,000
• SBA Disaster Loans Up To $2,000,000
• Defer Payroll Taxes Sec 2201 To 2021/2022
• Recovery Rebates $2,400 MFJ/$1,200 Single/$500 per dependent child under 17
• Get Cash For NOLs In ’18, ’19, ’20
• Employee Retention Credit Up To $10,000/employee for small businesses
• Sick Employee Payroll Tax Credit Up To $2,000/employee/qtr for small businesses

Celtic Fairies, Fables, and Folklore! Bestselling author (top #100 Amazon Canada, #1 in Paranormal Fantasy, Amazon Canada) Christy Nicholas, also known as Green Dragon, is an author, artist and accountant. After she failed to become an airline pilot, she quit her ceaseless pursuit of careers that begin with 'A', and decided to concentrate on her writing. Since she has Project Completion Disorder, she is one of the few authors with NO unfinished novels. Christy has her hands in many crafts, including digital art, beaded jewelry, writing, and photography. In real life, she's a CPA, but having grown up with art all around her (her mother, grandmother and great-grandmother are/were all artists), it sort of infected her, as it were. She wants to expose the incredible beauty in this world, hidden beneath the everyday grime of familiarity and habit, and share it with others. She uses characters out of time and places infused with magic and myth. Combine this love of beauty with a bit of financial sense and you get an art business. She does local art and craft shows, as well as sending her art to various science fiction conventions throughout the country and abroad. Facebook: www.facebook.com/greendragonauthor Homepage: www.greendragonartist.com Blog: www.greendragonartist.net Twitter: www.twitter.com/greendragon9

Tagged with: , , , , ,
Posted in Travel

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

Follow me on Bookbub!
FOLLOW ME ON BOOKBUB!
Categories

Enter your email address to follow this blog and receive notifications of new posts by email.

Join 8,233 other followers

Follow Christy Jackson Nicholas, Author and Artist on WordPress.com
%d bloggers like this: