Business Professional

Question 1

Will my stimulus check be considered as taxable income?

Answer

Your stimulus check is not considered taxable income. The check will not increase the amount you owe when you file your 2020 federal tax return and will not decrease your refund for the 2020 tax year.

Question 2

I was claimed as a dependent in 2019. If I file separate for 2020, will I receive my stimulus?

Answer

Yes. You can file a tax return for 2020 and get a $1,200 stimulus payment, even if your income is so low you do not have a filing requirement.

Question 3

My income is lower than reported in 2019, can I claim the stimulus check for the rest of the $1,200 I did not receive originally?

Answer

This 2020 Tax Season will be integrating a stimulus questionnaire to claim, qualify, or requalify you for the stimulus you did not receive back in April 2020. There will be an opportunity to recover this check when you file for your 2020 tax return.

Question 4

Will there be a second stimulus check?

Answer

The second wave of stimulus checks are still pending to be approved. If approved, it will be distributed early 2021. We recommend setting up direct deposit when you file for your 2020 tax return in order to receive the payment sooner than a mailed check. If you have yet to file 2019, please contact us so we can help you file and set up direct deposit to decrease any delays on this payment.

Question 5

I file using an ITIN, can I receive the stimulus for my American Citizen dependents or spouse?

Answer

No. You must file a tax return with a valid social security number to receive the $500 payment for your dependents. If you have a spouse with a valid SSN, there are some instances you can file separately. Not every situation is eligible to file separately, each couple has a different tax situation to consider. If you are in the military, you are an exception to this rule. You are eligible for the stimulus payment if one of your files with an ITIN.

Question 6

I received the PPP loan and/or EIDL loan. Is this considered taxable income?

Answer

Here is the simple answer: the loan will not be included as business taxable income and the business expenses paid with the loan cannot be claimed as a tax deduction.

Question 7

Will I pay taxes on the extra $600 Unemployment Benefits received?

Answer

If you are barely asking this question now, it might be too late. You will be taxed on your entire Unemployment Benefits received for 2020. If you never checked the box for voluntary tax deduction for your benefits, you may owe when it is time to file your 2020 tax return. Please give us a call to set up an estimated tax plan for January 15, 2021, to help lower the impact of this decision.

Question 8

I withdrew money from my 401K, will I be penalized for this early withdrawal?

Answer

Maybe. The penalty waiver exemptions have broadened for 2020 and many people will be qualifying for a penalty waiver. Give us a call so we can help you determine eligibility.