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Get My Payment Site Not Very Helpful

4/17/2020

On Wednesday the IRS announced the Get My Payment site that would allow people to track their stimulus payment plus for those that hadn't previously provided direct deposit information they would be able to input that information. The IRS has said it's been a great success but our clients (and apparently a lot of other people based on comments on social media) have not be happy with the site. A large number of people have gotten "Payment Status Not Available" when they provide their information. Here is what we have found:

The IRS has reported 80 million people got direct deposits on Wednesday. It appears that people who filed and had direct deposit in 2018 have for the most part received their stimulus money if they haven't filed the 2019. It does seem like the system is showing the information as to it being deposited with some information about the account it was deposited into. They are also supposed to be mailing checks to make people aware of the deposits. If the money wasn't received there is information on the letter as to how to handle it.
People that have filed 2018 but had a balance due or owed money are not showing up in the system.
People that have filed in 2019 in the last couple weeks are not showing up in the system (seems the returns are still being processed). This is true even for people that have already received the direct deposit refunds for filing their taxes. It seems these people haven't received their stimulus money yet.
People that filed 2019 earlier in the year are showing up in the system. If they had direct deposit they have gotten their refund. If they had a check mailed or owed they are showing up in the system with the ability to put in direct deposit information for their stimulus money to be direct deposited. (We still have no idea how this will work if they will get their money direct deposited fairly quickly or what.)
Anyone that hasn't filed a tax return isn't showing up in the system. However they will be issuing stimulus money to those who are on social security or railroad retirement. If you don't fall into those categories and are not required the file the IRS does have an option to provide information so they can send you the stimulus money. Even for people that have provided information since the system came up on Monday, they are not showing up in the system.

So please read my previous blogs about who is entitled to the stimulus money. Anyone who has filed a 2018 return and made less than $99,000 as a single person, $140,000 as head of household, or $198,000 as a married couple will be eligible for a portion of the stimulus money. If you owed money or had a check mailed the stimulus money will at least be mailed to the address on the 2018 tax return. If you filed the 2019 tax return the same rules apply. You will get your refund mailed to the address on that return.

Unfortunately there is no way to contact the IRS in regard to these payments because there are no phone lines open right now. I have done my best to communicate these issues to a contact I have at the IRS as well as through social media pages. At this time it's a waiting game. At the very least the stimulus amount will be added to the 2020 tax return if you qualify.

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Money, Money, Money

4/15/2020

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So it seems that money is starting to come in on several fronts.

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.

https://www.irs.gov/coronavirus/economic-impact-payments

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.

Unemployment

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.

SBA Funding

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.

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Stimulus Money on the way

4/12/2020

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The first stimulus payments were sent out to banks on Saturday April 11, 2020. There is no indication as to who was part of this first round (I haven't heard from any of my clients that they have got them). Anyone that has filed a 2018 or 2019 tax return and had direct deposit will automatically get their stimulus money based on the most recent tax return. If you are on social security and not required to file a tax return then you will get your money direct deposited to the same account your monthly benefits go to. If you are not required to file and have children under 17 you can provide your information on the IRS website (https://www.irs.gov/coronavirus/non-filers-enter-payment-info-here). The IRS is still working on a way to check your refund status and to provide direct deposit information. They anticipate those to be available later this week.

Please note: This is not a loan on next year's tax refund! This is not taxable! As with previous years, they will add a line to the 2020 tax return. If you didn't get the money in 2019 you can still get it in 2020. There will be a calculations for everyone that files in 2020 and you will show how much you already received. If you didn't get everything you were entitled to (for example if you didn't claim a child in 2019 but you can in 2020) then you will receive the additional amount. If you received too much money you will not have to repay that amount. There will be no report of this income on the 2020 tax return and you will not have to pay tax on it.

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Kansas Updated Information

4/9/2020

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The Kansas Department of Labor had a great press conference yesterday going through what is going on with the unemployment process and giving some highlights on the new programs. Keep an eye on their website (https://www.dol.ks.gov/) or on their facebook page (https://www.facebook.com/KansasDOL/). A few thing to note from this conference:
1. The $600 additional unemployment amount will be backdated to claim for the week of March 29th. So make sure you file your claims because the additional money will come.
2. Self-employed individuals should file their claims and continue to file weekly so that when the program is open they will receive that back dated amount from when you started filing.

Self-employed individuals need to put their information in as the employer (name and address)
Once they have the process going they will calculate your claimed based on information you provide about previous income you have made. So be prepared to provide proof of income
The way they announced the calculations today it sounds like they will calculate a KS amount as well a you will get the additional $600.

3. Those that haven't previously been entitled to file a claim may now be eligible...this also includes those who work for non-profits.
4. Part-time workers may also be eligible for benefits even though they previously haven't been eligible because you have to be available for full time work.

If you'd like to watch the whole press conference please check it out on Facebook
https://www.facebook.com/KansasDOL/videos/1117735715241851/

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Small Business Information Part 1 (SBA loans/grants)

4/2/2020

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Paycheck Protection Program

If you’re a small business the government wants to loan you money to continue with your payroll during this crisis. These loans are available for small businesses with less than 500 employees. Small businesses can apply through any SBA 7(a) lender. Here’s a list of the top 100 SBA 7(a) lenders--https://www.sba.gov/article/2020/mar/02/100-most-active-sba-7a-lenders

Lenders can begin to process applications April 3, 2020. The loan will be forgiven if you use at least 75% of the loan on payroll. You can also use the other 25% of the loan for operating expenses such as rent, utilities, and mortgage interest. Forgiveness will be reduced if total head count or wages decline.

Loan payments will be deferred for 6 months. If loan is not forgiven it will have a maturity of 2 years and an interest rate of .5%.
You can find a sample loan application on the SBA website.
https://www.sba.gov/document/sba-form--paycheck-protection-program-ppp-sample-application-form

Economic Injury Disaster Loan and Loan Advance

Small businesses are currently eligible for an Economic Injury Disaster Loan Advance of $10,000. If approved it should be available in 3 days. This is a simple process by submitting an application on the SBA website. https://covid19relief.sba.gov/#/ This loan advance will not have to be repaid.

The economic injury disaster loan are to help small businesses with lost income continuing operating in the current economy. This process will take longer for approval.

SBA Debt Relief

If you currently have an SBA loan, then this option is for you. This will give the business 6 months to not pay their mortgage.

There is lots of additional information on their website:
https://www.sba.gov/page/coronavirus-covid-19-small-business-guidance-loan-resources#section-header-2

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Stimulus Update

4/2/2020

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The newest update on Stimulus checks is they will be getting checks out as quickly as possible. These are based on the 2018 or 2019 tax returns. There was some debate about people that do not generally file a tax return. The latest information says that those that received a SSA-1099 or 1099 RRB will automatically get their $1200 deposited into the same account their social security goes into. They do not have to file a return unless there are some additional circumstances that would get you more money. For example, if you are on social security and have eligible dependents they will not give you the additional money unless you file a return. If one spouse is on social security and the other is not (and you didn't file a tax return) they will only account for one adult to get the $1200. You would need to file a joint return in order to get the $2400. If you have benefits that are not reported on the SSA-1099 or 1099-RRB then you may need to file in order to qualify for the stimulus money.

Keep in mind this stimulus money is an advance on a credit on the 2020 tax return. Although there is limited information on how it will work with previous advances the following year you will file your return and calculate the allowed credit and then subtract off what you've already received. So if you're not currently eligible because of income or you've added a child in 2020 then you may be eligible for an additional amount on the 2020 tax return. And while that won't help you right now during this current crisis, it will at least come to you at some point.

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Get My Payment Site Not Very Helpful

Money, Money, Money

Stimulus Money on the way

Kansas Updated Information

Small Business Information Part 1 (SBA loans/grants)

Stimulus Update

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