Economic Impact Payments
First, the federal economic impact payments (stimulus payments) are starting to hit banks for those that have had the returns directed deposited in 2018 & 2019. If you owed money or didn’t choose that option then you can go to the IRS website and provide direct deposit information.
For anyone not required to file a return in 2018 or 2019 (not enough income) there is also a place on that site to provide basic information so that you can also get your stimulus money. They have asked that you DO NOT use this if you received social security or railroad retirement and don’t file. Those that get social security or railroad retirement payments will receive their payments as they do their social security payments. However, if you had other benefit payments you will have to complete this process. And if you received one of those benefits and have a child under 17 you should also provide information.
Once again, this money is NOT taxable on next year’s tax return. It’s not going to have to be repaid or come out of your 2020 refund. This is an advance on a special credit that will be on the 2020 tax return. You will calculate the amount you are owed on the 2020 tax return and then subtract off what you already got paid. IF you got too much you will not have to pay it back. IF you didn’t get enough you can claim the additional amount on the 2020 tax return.
The additional $600 for unemployment provided by the federal government is also starting to hit banks. Missouri sent out their first payment this week. It appears Missouri will be sending money out separately from your normal unemployment payments. So keep your eyes open for those amounts in your bank account. They were supposed to be back paying for any claims starting the week of March 29th.
As far as I know Missouri has not yet figured out payments for those that are self-employed. Their website currently says to apply and they will contact you when they have their new system up and running.
On the Kansas side, unfortunately, things have not gone as smoothly. People are having problems filing claims and the website crashed this weekend. They have told people that don’t qualify to continue to file so they know you are still unemployed. Kansas has said they will be calculating state benefits for those that are self-employed as well. So they will be looking for information from self-employed once they get the system up and running. They have hired a lot more people to man the phones which will help with the process. The only thing I can tell you to do is be patient. Again they will back pay benefits from the time the original claim was filed. And the additional $600 will also be back paid.
We have also heard this week that many people are starting to see their EIDL and their PPP money. If you are a small business owner and need assistance then you need to apply for one of these two programs (or both). The EIDL advance is up to $10,0000. We found out last week that they are giving out $1000 per employee and if you’re self employed and have no employees then you just get $1000. This amount is forgivable if it’s the only loan you are getting. If you also choose to file for the PPP this loan is 2.5 times your average payroll or if you’re self employed your net income for 2019. This loan has to go through a bank so every bank is requiring different information and taking a different amount of time to process. I have seen people say they have been accepted and have been funding within a few days. Most banks are primarily working with current customers only, but some banks are willing to work with other small businesses. It appears the smaller banks are handling these loans quicker than larger ones.