Yesterday I was in a two-hour class that felt like I was drinking from a fire hose. I sort of had a meltdown (OK, maybe not sort of) and I just had to go home.
Today is better. I realized that right now is a lot like then end of 2018 and early 2019 when everyone was talking about the new tax law, especially Section 199A. Really, there’s just too many people putting out too much information and right now what we have is a lot of new law without a lot of implementation guidance. It’s sketchy. I don’t have good answers because the people in charge of implementing the law (the IRS, the SBA, etc.) don’t have good answers. I decided to back away from the information and commentary and just focus on return processing for a couple of days to give the feds a chance to update their information. In the meantime—
Here’s what I can tell you about the stimulus payments:
- If you filed a tax return in 2018 or 2019 you will get your stimulus payment. If it’s wrong in your favor it won’t be clawed back. If you don’t get the right amount or don’t get one at all we can fix it when we file your 2020 return.
- If you’re a senior who doesn’t have to file there’s conflicting information. You might have to file some kind of “simplified return” to get the stimulus or you might just get it if you’re getting Social Security Benefits.
- If you’re a young adult who was claimed on your parents’ return in 2018 or 2019 then you won’t get a stimulus now but you can correct that when you file your 2020 return or that “simplified return” option that’s available to seniors might also be available to you.
- I’m going to do some more reading and try to clear up the confusion, but no guarantees!
Here’s what I can tell you if you’re a small business owner/self-employed:
- There are a few different options for loans and tax credits. I’ve got a bunch of information I need to re-read and analyze to get you better information as to the tradeoffs. Some of the smartest people in the business have been providing some excellent charts and summaries and I will pass those along as soon as I’m sure it’s OK to do so.
- One of the major loan programs starts Friday. I’ll try to have this sorted by next Monday so you can make a good decision or at least start thinking about your needs.
- There won’t be double dipping. Again, tradeoffs. You are going to need to figure out what works best for your situation. I can help with that but in the end the decision is yours.
- I think there is going to be some sort of unemployment option for self-employed individuals but we’re a bit light on the details right now.
I’m crunching through tax returns today and tomorrow. I’ll be working on the small business/self employed stuff over the weekend. Stay frosty. Stay healthy. Stay tuned.