The COVID-19 pandemic has created a stressful atmosphere for both business owners and individuals. In the wake of its effects and after much deliberation, the government has passed a stimulus package aimed at assisting the consumer during these strenuous times. While the impact of the stimulus on your personal finances may be confusing, we would like to make a few things clear by going over some of the questions we have been receiving:
Are there benefits for small business owners?
Congress plans on implementing multiple financial assistance measures for small business owners, including disaster, as well as payroll loans. We will keep you updated on the status of small business relief.
How much will I get if I make over 99K?
If you earn over 99k you will not receive any payment from the proposed stimulus package.
If I didn’t file for 2019, will my payment be adjusted after I receive my check?
Based on previous history, the IRS would most likely adjust the amount based on your 2019 filing down the road.
It’s worth noting that in 2001, the rebate checks from the IRS took about six weeks to send. At the time U.S citizens had to file their tax return first in order to get the check. Once filed it would be about 8-12 weeks to get their money.
When would they arrive?
According to Treasury Secretary Steven Mnuchin, most people can expect to receive their payments within three weeks that he expected most people to get their payments within three weeks. However, we would expect most people to begin receiving their payments sometime in May.
If my payment doesn’t come soon, how can I be sure that it wasn’t misdirected?
A paper notice is sent in the mail a couple of weeks after payments are sent. The notice details the location of your payment and what form it is made in.
What if I haven’t filed tax returns recently, would that affect my ability to receive a payment?
The simple answer? It could. File a return immediately, at least for 2018, the IRS website states “Those without 2018 tax filings on record could potentially affect mailings of stimulus checks”.
How much would I receive?
It depends on your state.
- The average worker earns about $1,000 a week, and unemployment benefits often replace roughly 40 to 45 percent of that. The bill would pay an extra amount to fill the gap.
- Under the plan, eligible workers would get an additional $600 per week on top of their state benefit.
- According to the Century Foundation, the maximum weekly benefit in Alabama is $265, but it’s $450 in California and $681 in New Jersey.
How do I know if I will get the full amount?
Single adults with an adjusted gross income of $75K or less would be eligible to receive the full payment. If you are a married couple with no children and earn $150K or less, you would receive a total of $2400.
Additionally, someone filing as head of household would get the full payment if they earn $112,500 or less.
Above those income figures, the payment decreases until it stops altogether for single people earning $99,000 or married people earning $198,000.
It is important to note that the United States government is basing the stimulus off of your 2019 tax filing. If you have not filed for 2018, you must file to take advantage. If your income has changed dramatically in 2019, it is suggested that you file your 2019 taxes as soon as possible.
At BSM Accounting, we are committed to keeping our clients updated on the latest developments. Stay tuned for more emails and blogs as the situation progresses.