Manche757 Posted March 31, 2020 Share Posted March 31, 2020 Times are uncertain as we moved deeper into the grip of the Corona Virus. US deaths now are around 2500. Estimates are that between 100,000 and 200,000 may die, if preventative social distancing and other good medical practices are followed. Things are just starting. Enough of that. Last night, I read through much of the literature about the benefits that should be coming. I place a caveat on these comments because things are still evolving but thought this much might be helpful to those whose income is uncertain now. $1200 will be sent to each person whose income is not over $75,000 per year. $150,000 for married couples. Whether you are working or not won't matter. If you are getting Social Security, that will not prevent you from getting these payments. If you income is between $75,000 and $99,000 for single individuals, the amount will be gradually reduced until phased out completely. The range for phase out for married couples is from $150,000 to $198,000 per year. Children will be entitied to an additional $500. If you can be claimed as a dependent by someone else, you will not get $1200. It is expected that filed federal income tax returns will be looked at for income levels and for your bank account information to be used for direct deposit. If you have not filed for 2019, your 2018 return will be used. If you have not filed returns for several years, you should file your 2018 return quickly. Link to comment Share on other sites More sharing options...
Ωhm Posted March 31, 2020 Share Posted March 31, 2020 Just submitted (efile) 2019 Form 1040SR. Haven't filed taxes in 4-5 years. Link to comment Share on other sites More sharing options...
Manche757 Posted March 31, 2020 Author Share Posted March 31, 2020 Unemployment benefits are administered by state agencies generally. The one week wait often rwquired has been eliminated. You will need to apply each week. The amount you are entitled to will vary depending on which state you live in. In addition to that amount, an additional $600 will be paid. You will not have to be looking for a job as is usually the case. The average pay in the country is thought to be $1000 and that amount is targeted. Link to comment Share on other sites More sharing options...
Manche757 Posted March 31, 2020 Author Share Posted March 31, 2020 3 minutes ago, Ωhm said: Just submitted (efile) 2019 Form 1040SR. Haven't filed taxes in 4-5 years. Link to comment Share on other sites More sharing options...
Manche757 Posted March 31, 2020 Author Share Posted March 31, 2020 Self-emloyed people generally do not qualify for unemployment compensation. They will qualify for benefits now. Both for the state amount and for the additional $600 per week. For those that work out of your home, you will NOT qualify to get unemployment payments for the self employed. If you work out of a separate building on you property consider getting advice regarding this. Hope these comments help and provide comfort regarding loss of income. Link to comment Share on other sites More sharing options...
Manche757 Posted March 31, 2020 Author Share Posted March 31, 2020 At this time, we are waiting for a system to be made to disburse the payments. In the mean time get your 2018 return efiled (file electronically), if you are delinquent. Find your way around the site for the emplopment commission for your state. Find your W-2 for 2019 if you have not filed. Keep your latest paystub handy, you may need it. Link to comment Share on other sites More sharing options...
Manche757 Posted March 31, 2020 Author Share Posted March 31, 2020 Unemployment benefits you receive will be taxable in the year received. Link to comment Share on other sites More sharing options...
Manche757 Posted March 31, 2020 Author Share Posted March 31, 2020 If your income was above the cutoff amounts in 2019 but are now very reduced, you will not get the $1200 individual payment; $2400 for married couples. Link to comment Share on other sites More sharing options...
Manche757 Posted March 31, 2020 Author Share Posted March 31, 2020 As stated in the beginning all of this is still evolving. If this doesn't work out, we all move in with Pete Link to comment Share on other sites More sharing options...
Manche757 Posted March 31, 2020 Author Share Posted March 31, 2020 By now you probably know that IRS tax returns and tax payments normally due April 15 will be due July 15. If you make estimated quarterly tax payments, the Federal payment due April 15 will be due July 15. The due date for the June 15 payment has not been extended at this time. Each state decides delayed due dates for returns and payments. Edit: June 15 estimated tax payments are now due July 15 also. Link to comment Share on other sites More sharing options...
Manche757 Posted March 31, 2020 Author Share Posted March 31, 2020 For the sake of clarity, the $1200 payment per individual is totally separate from unemployment payments. You can get one or both Link to comment Share on other sites More sharing options...
ftpiercecracker1 Posted March 31, 2020 Share Posted March 31, 2020 I am self employed and owe back taxes. I actually just got a letter of collection in the mail for failure to pay about a week ago. Ive filed and paid every year ive been SE, i don't file quarterly, yes i know i should be. The back taxes are for 2018, which i paid, but the IRS made some adjustments and determined i owe more. Gave me a week to respond, but i just didn't have the money. Based on what ive read here, am i safe to assume these collections will be delayed? Not like i have anything worth seizing. Also any idea how this would effect the $1200? Single, no kids, 20k year. Also also, is the $1200 just like an interest free loan? Link to comment Share on other sites More sharing options...
Manche757 Posted March 31, 2020 Author Share Posted March 31, 2020 This is based on current things as they stand: you will get $1200 with no offset for amounts you owe. The Trump mafia is saying about 3 weeks. The $1200 is not a loan; there is to be no repayment. Collections efforts are to be put on hold. Installment agreement payments can be delayed. Edit: There may be offset for unpaid child support. Link to comment Share on other sites More sharing options...
Manche757 Posted March 31, 2020 Author Share Posted March 31, 2020 11 minutes ago, ftpiercecracker1 said: Also also, is the $1200 just like an interest free loan? I did not comment previously but there will be non-recourse loans available to business. Nonrecourse means that you would not have to repay the loan if the business fails. You would have to keep employees on the payroll. There are also some provisions to reimburse business for keeping employees on the payroll. Link to comment Share on other sites More sharing options...
Manche757 Posted March 31, 2020 Author Share Posted March 31, 2020 On 3/31/2020 at 12:55 AM, ftpiercecracker1 said: I am self employed and owe back taxes. I actually just got a letter of collection Those letters are sent out by artificial intelligence. Computers are programmed to send those out weeks in advance. If you get a certifed mail one, call about it. There is almost no one at the IRS now. Higher ups told most remaining people to evacuate. Link to comment Share on other sites More sharing options...
ftpiercecracker1 Posted March 31, 2020 Share Posted March 31, 2020 48 minutes ago, Manche757 said: Those letters are sent out by artificial intelligence. Computers are programmed to send those out weeks in advance. If you get a certifed mail one, call about it. Almost no one at the IRS now. Higher ups told most remaining people to evacuate. Thanks for the clarification. It was a certified letter, i had to sign for it, thats certified right? Link to comment Share on other sites More sharing options...
Manche757 Posted March 31, 2020 Author Share Posted March 31, 2020 5 hours ago, ftpiercecracker1 said: Thanks for the clarification. It was a certified letter, i had to sign for it, thats certified right? Yes, you would have to sign for it. Scamming, phishing. The IRS will not be calling or emailing you. Link to comment Share on other sites More sharing options...
Minuit Posted March 31, 2020 Share Posted March 31, 2020 While I am not currently affected by the unemployment spike (Radios don't count; as part of my real job I hop from place to place, but right now I'm working in support of a factory that makes hand sanitizer among other things - I'm not going anywhere until this job is done), I hope those who are are able to put this money to good use. My $1200 will be used to further bolster my emergency fund. Never a better time to have one than now. Link to comment Share on other sites More sharing options...
Manche757 Posted April 3, 2020 Author Share Posted April 3, 2020 Yesterday, a 31 page document was released that benefit businesses that continue to pay salaries to employees and other expenses. There are loans available to businesses that do not have to be repaid as long as they continue to pay employees. Loan payments on existing SBA loans will be paid by the SBA for 6 months. Hopefully, businesses will avail themselves of these and other benefits to avoid further layoffs. Those that own businesses should investigate that. Employees might mention it their employers. For older individuals that have retirement accounts and do not want to take RMDs, Required Minimum Distributions, because portfolio values have dropped, you do not have to take the RMD. For those with retirement accounts that are under age 59 1/2 that need to withdraw funds, the usual 10% penalty has been waived. You will be able to pay tax on the distribution over 3 years or pay it back, if you chose, over a longer period than usual. For those that receive Social Security Income but have not filed returns in recent years, you will not have to file a return as previously announced because your direct deposit account numbers are known. Link to comment Share on other sites More sharing options...
Manche757 Posted April 3, 2020 Author Share Posted April 3, 2020 The $1200 stimulus payments are not taxable. If your income is not over $75,000 for a single persons or $150,000 for married couples you should get the whole amount. The payments have nothing to do with being unemployed. If your income is too high to qualify for the payment but drops this year so that you do qualify, you should get the payments when you file your tax return for 2020. Link to comment Share on other sites More sharing options...
87MJTIM Posted April 4, 2020 Share Posted April 4, 2020 14 hours ago, Blue XJ said: I'll believe it when I see it. I have to pay taxes on my prior years tax return. Then you did withholdings correctly. You didn’t give them a loan. You have until July 15 to pay it. Link to comment Share on other sites More sharing options...
Blue XJ Posted April 4, 2020 Share Posted April 4, 2020 I meant I still got a return, a small one, but I have to claim my state return on my taxes as income, and get taxed on it again. I have till Apeil 15th for state, it didn't get extended. At least not as of last week it didn't. Link to comment Share on other sites More sharing options...
Manche757 Posted April 4, 2020 Author Share Posted April 4, 2020 On 4/4/2020 at 8:43 AM, Blue XJ said: I meant I still got a return, a small one, but I have to claim my state return on my taxes as income, and get taxed on it again. Only if you itemized in the year that created the state refund must you claim that state refund on your Federal return in the year received. Federal refunds are not taxable. On 4/4/2020 at 8:43 AM, Blue XJ said: I have till Apeil 15th for state, it didn't get extended. At least not as of last week it didn't. Governor Whitmer Signs Executive Order Changing City, State Income Tax Filing Deadlines to July 2020 FOR IMMEDIATE RELEASE March 27, 2020 Governor Whitmer Signs Executive Order Changing City, State Income Tax Filing Deadlines to July 2020 Taxpayers Must Submit State and City of Detroit Income Tax Returns, Payments by Midnight on July 15 LANSING, Mich. – Today, Governor Gretchen Whitmer signed Executive Order 2020-26, which pushes all April 2020 state and city income tax filing deadlines in Michigan to July 2020, as a part of continued efforts to help Michiganders during the COVID-19 pandemic. Effective immediately, state of Michigan and city of Detroit income tax returns and payments due on April 15 are now due before midnight on July 15. Other state of Michigan cities with income taxes due on April 15 will now be due on July 15, while cities with income taxes due on April 30 will now be due on July 31. Link to comment Share on other sites More sharing options...
Blue XJ Posted April 4, 2020 Share Posted April 4, 2020 Cool, I have more time. Will probably wrap them up this weekend anyway. 'Finished' them a month ago and then got a few more documents in the mail and have to update them. Link to comment Share on other sites More sharing options...
Money_Pits Posted April 4, 2020 Share Posted April 4, 2020 Manche757, I appreciate the work you're doing here. Link to comment Share on other sites More sharing options...
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