What year will the IRS use to determine my stimulus? The IRS will use your 2018 or 2019 tax returns to determine the amount of your check. The actual credit will be calculated on your 2020 Form 1040. Any advance rebate paid to the taxpayer will reduce the amount of credit in 2020, but not below -0-. The law is written to provide for a payment to taxpayers if the 2020 credit calculation exceeds the rebate already received by the taxpayer. And, if the actual 2020 credit is less than the rebate, the taxpayer is not required to pay back any of the excess cash received. If your income for the year used is higher than your 2020 income you should receive a tax credit in 2020.
What if you tried the “Get My Payment” tool and you received a message that says “Payment Status Not Available”?
According to the IRS:
- You aren’t eligible for a payment.
- Your payment is based on your status as a Social Security, disability, Veterans Affairs or Railroad Retirement beneficiary. In this case, the IRS will use your SSA or RRB Form 1099 payment information. Your payment information isn’t available on the Get My Payment tool.
- You have not filed a 2018 or 2019 federal tax return.
- You filed your 2019 return, but it hasn’t been fully processed.
- You used the non-filers tool, but the information you entered is still being processed.
- There’s a problem verifying your identity when answering the security questions.
- If you don’t fall into any of those categories, keep checking “Get My Payment.” It’s possible that the system just hasn’t had time to process your information. Information on the site is updated only once a day. The IRS says people who qualify for a payment will receive it by mail if they do not get it through direct deposit.
Economic Injury Disaster Loan via the Small Business Association
The Economic Injury Disaster Loan (EIDL)allows for up to $10,000 of economic relief to small businesses with less than 500 employees (including sole proprietorships, independent contractors and self-employed persons), private non-profit organization or 501(c)(19) veterans organizations affected by COVID-19. Funds will be made available within days of a successful application.
The SBA is unable to accept new applications at this time, but you can check the below link daily to stay updated on when additional funds will become available.
PPP (Paycheck Protection Plan)
The PPP provides a direct incentive for small businesses to keep their workers on the payroll since the SBA will forgive loans if all employees are kept on the payroll for eight weeks and the money is used for payroll, rent, mortgage interest, or utilities.
The Small Business Administration (SBA) is now accepting applications for Paycheck Protection Program loans.
QuickBooks is now available to a subset of customers, including multi-owner businesses*, using Intuit Online Payroll, QuickBooks Desktop Payroll on QuickBooks 2018, 2019, and 2020, QuickBooks Online Payroll, QuickBooks Self-Employed – users who filed 2019 taxes with TurboTax Self-Employed. Customers who receive notifications in their product should start their application now within QuickBooks Capital so they can submit applications to the Small Business Administration (SBA).
Apply via Quickbooks
Other SBA COVID-19 Relief Options
SBA Debt Relief
SBA Express Bridge Loan
Local Relief Funds
For non-traditional persons applying for UI insurance, you must:
- Apply and be denied for traditional Unemployment Insurance, with a letter of Monetary Determination via mail,
- Then apply via the PUA Program (Pandemic Unemployment Assistance) and wait for your Monetary Determination letter via mail.
The PUA program is available for 26 weeks plus with the PEUC (Pandemic Emergency Unemployment Compensation) program, that time frame is extended 13 weeks, for a total of 39 weeks of UI that you are eligible for. Plus under the Federal Pandemic Unemployment Compensation (FBUC) program you are eligible for an additional $600/week until July 31st, 2020.
Virginia – Start Here
Maryland – Start Here
Required Minimum Distributions (RMDs)
If you are age 70 1/2 before January 1, 2020 you are not required to take your 2020 distribution.
If you are aged 70 1/2 last year and were waiting until March 31 to take your 2019 distribution you are not required to take your 2019 RMD or your 2020 RMD. If you took your 2019 or 2020 RMD within the last 60 days you can roll over your distribution to the same or a different IRA within 60 days of the prior distribution and not pay the income tax on the withdrawal as long as you have not made an IRA withdrawal within the 365 days preceding your distribution. Inherited IRAs can take advantage of the RMD suspension for 2020 but they are not eligible for the indirect rollovers within sixty days.
If you are 59 1/2 or younger, distributions of up to $100,000 are not subject to the 10% excise tax in 2020 or on early distributions (only for IRA owners affected by coronavirus).
Distributions of up to $100,000 this year can be reported evenly as income over 2020, 2021 and 2022 and/or repaid. You will not have to pay the tax on the distribution if you choose to repay the distribution to an IRA or other eligible retirement plan within three years of the distribution (only for IRA owners affected by coronavirus).
Owners affected by coronavirus must meet these requirements:
- Personally diagnosed with coronavirus
- Your spouse or dependent is diagnosed with coronavirus
- Experiencing adverse financial consequences as a result of:
- being quarantined,
- being furloughed or laid off,
- having reduced hours,
- being unable to work due to lack of childcare,
- closing or reduced hours of a business owned or operated by the participant, or
- any other factor determined by the Secretary of the Treasury.