Stimulus/ppp/unemployment
So I’ve got 2 questions:
1: we filed our 2018 tax return with my youngest son as a dependent ( he was in college). Our income was over 200k for our joint return
We did not file 2019 until April 15 2020 and our son was not a dependent and our joint income was 176k?
Do we (and or son ) qualify to get the stimulus money?
2. We are an S corp and received the PPP? We have an employee who has been planning on retiringMay 1st. How does that affect whether we will have to pay back any of our PPP loan/grant? I thought it was based on the number of employees working. Do we need to hire another worker?
Thank you
Margaret Mayer
708-476-1323
Terry Says
OK, two complicated questions. If they review your 2019 return (vs 2018) then you and your spouse should get a partial stimulus payment, reduced by $5 for every $100 you are over the $150,000 limit on a joint return.
If you son did not file a tax return for 2019, he should immediately register here to get his own stimulus payment (since he was not declared a dependent):
https://www.freefilefillableforms.com/#/fd/EconomicImpactPayment
And the only way this could get messed up is if they review your 2018, not 2019 return. You’ll have to wait to see if that happens. And there should be, altho no promises, a way to appeal for people in the situation of being eligible in 2019, but not based on 2018 returns. We shall see.
Now, on the subject of the PPP loan. This is complicated. If you only have that one employee, besides yourselves, then he would likely be better off (and so would you) if you rejected tht PPP loan that you worked so hard to get. Then you could lay him off and he could collect unemployment for 26 weeks, plus 13 weeks, plus $600/week Federal money until July 25th. And YOU two could register for unemployment as self-employed individuals and get the same deal!
Now, if you have other employees, they may prefer the unemployment payments, which might be larger, and you could lay them off too. You’ll have to speak to an attorney about what happens when you must certify that you have kept your payroll intact to qualify for the PPP loan forgiveness. Otherwise it converts to a 1% loan that must be repaid in 2 years.
But do consider it from all those angles before you take the loan.
