Stimulus Payments – What you need to know
Between migrating to virtual work, dealing with the joys of unemployment, and setting up kids for remote learning those stimulus payments in the spring seem like they were issued years ago. Many people have told me they do not remember exactly how much they received. In order or to properly prepare your return this year we will need to know exactly how much you have received. The payments are not taxable on the federal return, but you may qualify for more money based on the results of your tax return.
For 2020 there will be a new form to reconcile those payments to all applicable returns to rectify what amount, if any, you are entitled to. This reconciliation will be happening on your 2020 income tax return. For those of you that received nothing, please let us know that was the case. If you did receive a payment, we will be asking you for a copy of your notice 1444, which was a letter you would have received from the White House, signed by Donald Trump around the time that you received the stimulus payment. If you cannot find that letter, please go back and check your bank account to find out how much you had received. You can also try calling the IRS, but lately it has been very difficult to get through.
We are getting a lot of questions about PPP2. The Treasury and SBA are still working through final preparations to fully open the second round of the PPP Loan program. The AICPA is telling us that they are anticipating January 15, 2021 we can begin submitting applications.
Remember if you have already received a loan the first round, you will need to show a 25% or more decline in revenue in any quarter in 2020 as compared to 2019, to qualify. Many banks are not mentioning this in their updates.
Many experts believe the 284.5 billion allocated to this program will be more than enough to cover all borrowers that qualify. They do not anticipate running out of money like they did last spring. The SBA has evolved their application review process and there will be more controls and verifications of each application. This may result in a longer processing time. You will need to be patient and may have to consider other funding options until your loan funds are disbursed.
The new application forms are available and can be found on the SBA website https://www.sba.gov/funding-programs/loans/coronavirus-relief-options/paycheck-protection-program. There are two applications on that page. Once for first time borrowers and the other for second time borrowers.
If you need any help with your applications or forgiveness applications, please email email@example.com.
MD LEWIS LLC
Want More from Your CPA Firm?
Unhappy with your current CPA/tax professional? Looking for guidance and coaching to improve your business strategy? The first step is understanding your options, so you can take control of your finances and make better informed decisions that impact the future success of your company.
At MD LEWIS LLC, we will help you do just that.