Updated 3/27/2020
Congress has now passed the a historic $2 trillion coronavirus relief package. We’ve been keeping track of how this will effect our clients and will continue to update as we know more. Below are 3 new areas that we have not touched on before that we feel our clients should know.
1) Use of retirement funds:
The bill waives the 10% early withdrawal penalty for distributions up to $100,000 for coronavirus-related purposes, retroactive to Jan. 1.
2 ) Small businesses:
$350 billion is being dedicated to prevent layoffs and business closures while workers have to stay home during the outbreak. Companies with 500 employees or fewer that maintain their payroll during coronavirus can receive up to 8 weeks of cash-flow assistance. If employers maintain payroll, the portion of the loans used for covered payroll costs, interest on mortgage obligations, rent, and utilities would be forgiven.
3 ) Payroll taxes:
The measure allows individuals to delay the payment of their 2020 payroll taxes until 2021 and 2022.
STIMULUS PAYMENTS
How much will I receive?
- Individuals who earn $75,000 or less in Adjusted Gross Income* will get direct payments of $1,200 each
- Married couples who earn $150,000 or less in Adjusted Gross Income* will receive $2,400 – and an additional $500 per child under the age of 16
- These payments will decrease phasing out completely for single individuals making over $99,000 and couples making over $198,00
* Adjusted Gross Income – Gross income includes your wages, dividends, capital gains, business income, retirement distributions as well as other income.
How do they determine what my income is and what year will that be based on?
They are basing it on your 2019 adjusted gross income. You can find your adjusted gross income on line 8b of the 2019 1040 federal tax return. If you haven’t prepared a tax return yet, you can use your 2018 return.
How many payments will I get?
For right now just one. Other bills would have to be passed to issue more payments
What if my 2018 income made me ineligible, but I anticipate being eligible in 2019 but I have not filed yet? Do I get a payment?
The bill does not appear to help people in that circumstance. If you believe this is the case 2019 filed and in the IRS system as soon as possible.
Where do I apply to receive the payment?
You do not have to apply to receive the payment. If the Internal Revenue Service already has your bank account information, it would transfer the money to you via direct deposit based on the recent income-tax figures it already has
What if I haven’t filed tax returns in the past few years, will I still get a payment?
No. You will need to file a return immediately, at least for 2018, according to the I.R.S. website. “Those without 2018 tax filings on record could potentially affect mailings of stimulus checks,” the site says. If you’re worried about money that you owe, the I.R.S. recommends consulting a tax professional who can help you request an alternative payment plan or some other resolution.
When will I receive my money?
Secretary of Treasury Steven Mnuchin expected most people to get their money in about 3 weeks.
UNEMPLOYMENT BENEFITS
Who would be covered by the expanded program?
The bill brings in far more workers than are usually eligible for unemployment benefits, this includes self-employed people and part-time workers. Essentially those who are unemployed, partially unemployed or who cannot work for a wide variety of coronavirus-related reasons will likely receive benefits.
How much will I receive?
The bill also appears to include 4 months of full unemployment paid to workers who make what it considers to be an average wage. Essentially we believe this will simply expand unemployment benefits to $600 per week, in addition to what states would provide as base salary compensation. Currently Georgia’s maximum unemployment benefits is $365 per week. They are assuming for the average worker adding the $600 a week will equal 100% of their salary.
I was on unemployment and it recently ran out — could I sign up again?
Yes. If you’ve exhausted your benefits, eligible workers could generally reapply. Everyone would get at least another 13 weeks, along with the extra $600 payment.
Who is not eligible for Unemployment Benefits?
Workers who are able to work from home, and those receiving paid sick leave or paid family leave would not be covered. New entrants to the work force who cannot find jobs would also be ineligible.
How long will it take to get my benefits?
While the fed is encouraging states to wave the 1 week waiting period, it is unclear how long it will take the states to process claims since they are getting strained with a flood of claims.
I heard something that lead me to believe that independent workers might be eligible for something in unemployment. My daughter is and independent booth rental hair stylist who is shut down. Did I hear correctly, might she be able to apply for something?
Self-employed individuals, such as fitness and yoga instructors, Uber and Lyft drivers, hair stylists and house cleaners, etc. – would be eligible to receive a payment of up to $1,200, more if they have kids. But, as of right now, we have not seen that self employed individuals would be eligible to collect unemployment insurance. We’ll keep updating this page as we learn more.
We would now like to update what came out of the Senate vote on the relief bill that passed the Senate yesterday.
We are now seeing that self-employed people would be newly eligible for unemployment benefits.
Benefit amounts would be calculated based on previous income, using a formula from the Disaster Unemployment Assistance program, according to a congressional aide.
Self-employed workers would also be eligible for the additional $600 weekly benefit provided by the federal government.
What if you only get Social Security. And don’t do a 1040 every year ?
If you are receiving Social Security benefits but didn’t file taxes in 2018 or 2019, you would be eligible to receive a stimulus check without a tax return based on data available to the IRS from your annual Social Security benefits statement. The government would send you a check using the information from your Form SSA-1099 Social Security Benefit Statement or your Form RRB-1099 Social Security Equivalent Benefit Statement. You would not have to file a 2019 tax return to get a stimulus check.
Do people who are in SSDI and social security get these checks aswell!!!
AARP worked to ensure that individuals who are collecting Social Security benefits for retirement, disability or Supplemental Security Income will be eligible for the stimulus checks, based on their tax returns or Social Security Administration data. AARP successfully fought to guarantee that low-income Social Security recipients would receive the full $1,200 check, not $600 as originally proposed.
If you are receiving Social Security benefits but didn’t file taxes in 2018 or 2019, you would be eligible to receive a stimulus check without a tax return based on data available to the IRS from your annual Social Security benefits statement. The government would send you a check using the information from your Form SSA-1099 Social Security Benefit Statement or your Form RRB-1099 Social Security Equivalent Benefit Statement. You would not have to file a 2019 tax return to get a stimulus check.
People who draw SSI or SSDI, will they receive this as well ? No one has mentioned anything about this.
AARP worked to ensure that individuals who are collecting Social Security benefits for retirement, disability or Supplemental Security Income will be eligible for the stimulus checks, based on their tax returns or Social Security Administration data. AARP successfully fought to guarantee that low-income Social Security recipients would receive the full $1,200 check, not $600 as originally proposed.
If you are receiving Social Security benefits but didn’t file taxes in 2018 or 2019, you would be eligible to receive a stimulus check without a tax return based on data available to the IRS from your annual Social Security benefits statement. The government would send you a check using the information from your Form SSA-1099 Social Security Benefit Statement or your Form RRB-1099 Social Security Equivalent Benefit Statement. You would not have to file a 2019 tax return to get a stimulus check.
I was told that if you get disability you can not file and you get nothing. Is this true?
We do know that someone receiving Social Security Disability will receive a check. But for those receiving some other form of disability who has not filed a tax return in the past…well.. the answer is a little unclear at this point. People in this position may want to file their 2019 tax returns quickly. You can still file a return even if you will not get a refund and do not owe any tax.
When this happened with the 2008 stimulus package, the IRS told people to file a return showing just $1 of income and at least $1 of adjusted gross income – even if you did not have it.
We hope to have more clarity after the official bill passes the House.
If a person is on Social Security and doesn’t have to file taxes, will they get the stimulus?
If you are receiving Social Security benefits but didn’t file taxes in 2018 or 2019, you would be eligible to receive a stimulus check without a tax return based on data available to the IRS from your annual Social Security benefits statement. The government would send you a check using the information from your Form SSA-1099 Social Security Benefit Statement or your Form RRB-1099 Social Security Equivalent Benefit Statement. You would not have to file a 2019 tax return to get a stimulus check.
If u draw disability and someone claimed u on there taxes as a dependent that wasn’t supposed to would u get your check and they get in trouble not u
The stimulus package pay $500 for each dependent under the age of 16. They would not get a check for any dependent claimed over the age of 16.
If your on disability and have temporary custody of ur grandchild and they get a check from deceased fathera s.s.I, will they get 600 also?
Essentially, whoever claims the grandchild as a dependent on their tax return will receive the $500 as part of their stimulus payment