Weygandt, Nesarajah & Company

03/13/2021

Who is eligible for the third Economic Impact Payment and what incomes qualify?

Generally, if you are a U.S. citizen or U.S. resident alien, you are eligible for the full amount of the third Economic Impact Payment if you (and your spouse if filing a joint return) are not a dependent of another taxpayer and have a valid Social Security number (see exception when married filing jointly) and your adjusted gross income (AGI) on their tax return does not exceed:

$150,000 if married and filing a joint return or if filing as a qualifying widow or widower
$112,500 if filing as head of household or
$75,000 for eligible individuals using any other filing statuses, such as single filers and married people filing separate returns.

Payments will be phased out – or reduced -- above those AGI amounts. This means taxpayers will not receive a third payment if their AGI exceeds:

$160,000 if married and filing a joint return or if filing as a qualifying widow or widower
$120,000 if filing as head of household or
$80,000 for eligible individuals using other filing statuses, such as single filers and married people filing separate returns.

For example, a single person with no dependents and an AGI of $77,500 will normally get a $700 payment (half the full amount). A married couple with two dependents and an AGI of $155,000 will generally get a payment of $2,800 (again, half the full amount). Filers with incomes of at least $80,000 (single and married filing separately), $120,000 (head of household) and $160,000 (married filing joint and surviving spouse) will get no payment based on the law.

03/06/2021

SBA EIDL Advance Grant with Targeted Eligibility
Small businesses may be eligible if they are located in low-income communities,* and have experienced a 30% reduction in gross receipts during any 8-week period between March 2, 2020 and December 31, 2021 compared to a comparable 8-week period before March 2 or in 2019. If you meet this description and previously received a EIDL advance grant that is less than $10,000, your business may be eligible receive the difference. Eligible businesses seeking the full $10,000 grant will be approved prior to any new applicants.

03/06/2021

Self-employed and gig workers can now apply for PPP loans under new rules.
As of Friday, march 05 2021 , the Small Business Administration is ready to accept and process updated PPP applications from sole proprietors looking to take advantage of a new loan calculation, the agency confirmed.
This means that sole proprietors can finally submit their applications to lenders, who can send them on to the SBA to be processed under the new loan calculation guidelines.
In addition, the administration announced a 14-day priority window for businesses with fewer than 20 employees to apply to PPP. The period began on Feb. 24 and will end on March 9.
The updated PPP applications for self-employed workers and sole proprietors who file IRS Form 1040 Schedule C now asks for the total amount of gross income, found on line 7 of the tax form. Previously, Schedule C filers applying for PPP loans were asked to give the SBA their net profit, from line 31 on the form.
Those applying for a first-draw PPP loan should use Form 2483-C and those applying for a second-draw loan should use Form 2483-SD-C, which include the new calculation information.

03/31/2014