Author Topic: Coronavirus Stimulus Aid Package  (Read 171574 times)

Offline cgr

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Re: Coronavirus Stimulus Aid Package
« Reply #540 on: December 21, 2020, 01:45:35 PM »
Does anyone know if the unemployment bonus in this bill will be retroactive as it was last time?
No. Will probably start on 12/27/20.

Offline Flatbush

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Re: Coronavirus Stimulus Aid Package
« Reply #541 on: December 21, 2020, 01:47:08 PM »
No. Will probably start on 12/27/20.
Thanks

Offline yosefsv

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Re: Coronavirus Stimulus Aid Package
« Reply #542 on: December 21, 2020, 02:28:08 PM »
Quote
Democrats also successfully pushed for a provision, which is retroactive to the CARES Act, to expand these direct payments to mixed-status households, importantly providing immigrant families across the country with access to this financial relief

Does this mean they will now get the first $1200 as well?
If it benefits even just one fellow DDFer, its worth posting it.

Offline TBD

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« Last Edit: December 21, 2020, 02:37:52 PM by thebudgetdeals »

Offline yosefsv

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Re: Coronavirus Stimulus Aid Package
« Reply #544 on: December 21, 2020, 02:46:45 PM »
Got it now.
You're asking if it only works if 2020 income is less than 2019 income, or if they'll allow it if 2020 income is greater (and potentially disqualifying) than 2019 income.
Need to wait for the bill text to answer that question...

"(2) NO EFFECT ON DETERMINATION OF GROSS INCOME, ETC. — Except as otherwise provided in this section, the Internal Revenue Code of 1986 shall be applied without regard to any substitution under subsection (a)."
If it benefits even just one fellow DDFer, its worth posting it.

Offline cgr

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Re: Coronavirus Stimulus Aid Package
« Reply #545 on: December 21, 2020, 02:47:56 PM »
https://rules.house.gov/sites/democrats.rules.house.gov/files/BILLS-116HR133SA-RCP-116-68.pdf

5593 pages
Thanks! Although a small part of it is the relief bill. The chunk of it is for government funding through September 2021.

Offline TBD

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Re: Coronavirus Stimulus Aid Package
« Reply #546 on: December 21, 2020, 02:50:57 PM »
"(2) NO EFFECT ON DETERMINATION OF GROSS INCOME, ETC. — Except as otherwise provided in this section, the Internal Revenue Code of 1986 shall be applied without regard to any substitution under subsection (a)."
IN GENERAL.—If the earned income of the tax23 payer for the taxpayer’s first taxable year beginning in
24 2020 is less than the earned income of the taxpayer for
25 the preceding taxable year, the credits allowed under secDecember 21, 2020 (7:54 a.m.)
2480
U:\2021OMNI\14OMNI\DivO-FF.xml SEN. APPRO.
1 tions 24(d) and 32 of the Internal Revenue Code of 1986
2 may, at the election of the taxpayer, be determined by sub3 stituting—
4 (1) such earned income for the preceding tax5 able year, for
6 (2) such earned income for the taxpayer’s first
7 taxable year beginning in 2020.
8 (b) EARNED INCOME.—
9 (1) IN GENERAL.—For purposes of this section,
10 the term ‘‘earned income’’ has the meaning given
11 such term under section 32(c) of the Internal Rev12 enue Code of 1986.
13 (2) APPLICATION TO JOINT RETURNS.—For
14 purposes of subsection (a), in the case of a joint re15 turn, the earned income of the taxpayer for the pre16 ceding taxable year shall be the sum of the earned
17 income of each spouse for such preceding taxable
18 year.

Offline TBD

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Re: Coronavirus Stimulus Aid Package
« Reply #547 on: December 21, 2020, 02:52:40 PM »
So I guess they wont look on unemployment income at all to determine EIC

Offline yosefsv

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Re: Coronavirus Stimulus Aid Package
« Reply #548 on: December 21, 2020, 02:55:04 PM »
So I guess they wont look on unemployment income at all to determine EIC
NO. they will
If it benefits even just one fellow DDFer, its worth posting it.

Offline AsherO

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Re: Coronavirus Stimulus Aid Package
« Reply #549 on: December 21, 2020, 02:55:35 PM »
5593 pages

Good lord*. Is there anywhere written up (interestingly) how these are prepared, summarized, and voted on by congress?

*) Then again, there's a ton of wasted white space, large fonts, huge margins, and line numbering that make this many more pages than it has to be.
DDF FFB (Forum From Birth)

Offline TBD

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Re: Coronavirus Stimulus Aid Package
« Reply #550 on: December 21, 2020, 02:58:00 PM »
NO. they will
It seems that they WONT in most circumstances.

If you had 20k EARNED INCOME in 2019 but in 2020 you have 10K EARNED INCOME + 35K unearned income from unemployment insurance, will still be eligible

Offline cgr

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Re: Coronavirus Stimulus Aid Package
« Reply #551 on: December 21, 2020, 02:59:09 PM »
IN GENERAL.—If the earned income of the tax23 payer for the taxpayer’s first taxable year beginning in
24 2020 is less than the earned income of the taxpayer for
25 the preceding taxable year, the credits allowed under secDecember 21, 2020 (7:54 a.m.)
2480
U:\2021OMNI\14OMNI\DivO-FF.xml SEN. APPRO.
1 tions 24(d) and 32 of the Internal Revenue Code of 1986
2 may, at the election of the taxpayer, be determined by sub3 stituting—
4 (1) such earned income for the preceding tax5 able year, for
6 (2) such earned income for the taxpayer’s first
7 taxable year beginning in 2020.
8 (b) EARNED INCOME.—
9 (1) IN GENERAL.—For purposes of this section,
10 the term ‘‘earned income’’ has the meaning given
11 such term under section 32(c) of the Internal Rev12 enue Code of 1986.
13 (2) APPLICATION TO JOINT RETURNS.—For
14 purposes of subsection (a), in the case of a joint re15 turn, the earned income of the taxpayer for the pre16 ceding taxable year shall be the sum of the earned
17 income of each spouse for such preceding taxable
18 year.

This says that they'll only allow an earned income replacement, not the full calculation off the previous year's AGI. Bottom line: it doesn't help those that collected UI and potentially lost EITC because of it. It does help those that didn't have earned income this year, or had very little, but are still eligible for EITC based on 2020 AGI.

Offline yosefsv

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Re: Coronavirus Stimulus Aid Package
« Reply #552 on: December 21, 2020, 03:01:57 PM »
It seems that they WONT in most circumstances.

If you had 20k EARNED INCOME in 2019 but in 2020 you have 10K EARNED INCOME + 35K unearned income from unemployment insurance, will still be eligible

To calculate your EIC you need to look up 2 numbers, the credit you should get with just your Earned Income, and the credit you would get with your total AGI, and whichever amount is less is your final EIC credit.

So while the bill lets you use the 2019 Earned Income, you will still use your 2020 AGI.

i.e. if your 2019 earned income is 15,000, and in 2020 you have 0 earned income and 30,000 in UI income, your EIC will be based on the 30k and not on the 15k since the 30k gives you a smaller EIC credit.
If it benefits even just one fellow DDFer, its worth posting it.

Offline TBD

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Re: Coronavirus Stimulus Aid Package
« Reply #553 on: December 21, 2020, 03:12:33 PM »
SIMPLIFIED APPLICATION.—
COVERED LOANS UP TO $150,000.—
IN GENERAL .—With respect to a
covered loan made to an eligible recipient that
 is not more than $150,000, the covered loan
amount shall be forgiven under this section if
the eligible recipient
signs and submits to the lender a
certification, to be established by the Administrator not later than 24 days after
the date of enactment of the Economic Aid
o Hard-Hit Small Businesses, Nonprofits,
and Venues Act, which—
 shall be not more than 1
page in length; and
shall only require the eligible recipient to provide—a description of the
number of employees the eligible
recipient was able to retain because of the covered loan;
the estimated amount
of the covered loan amount spent
by the eligible recipient on pay4 roll costs; and
the total loan value;
attests that the eligible recipient has—
accurately provided the required certification; and
omplied with the require11 ments under section 7(a)(36); and
retains records relevant to the
form that prove compliance with such requirements—

Offline TBD

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Re: Coronavirus Stimulus Aid Package
« Reply #554 on: December 21, 2020, 03:15:15 PM »
It seems that a 25% reduction in revenue in any quarter of 2020 vs 2019 will be eligible for 2nd PPP round

Offline Deal Guy

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Re: Coronavirus Stimulus Aid Package
« Reply #555 on: December 21, 2020, 03:16:20 PM »
Can independent contractors get ppp round 2?

Offline TBD

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Re: Coronavirus Stimulus Aid Package
« Reply #556 on: December 21, 2020, 03:17:45 PM »
Can independent contractors get ppp round 2?
Yes

Offline TBD

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Re: Coronavirus Stimulus Aid Package
« Reply #557 on: December 21, 2020, 03:20:59 PM »
It seems that new entities opened this year will also be eligible if they had payroll expenses

Offline TBD

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Re: Coronavirus Stimulus Aid Package
« Reply #558 on: December 21, 2020, 03:23:42 PM »
Banks are going to receive much higher fees this time around so I guess even small loans will get more attention from banks.

Minimum amount is 50% from the loan up to $2500 for loans up to $50,000

Offline cgr

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Re: Coronavirus Stimulus Aid Package
« Reply #559 on: December 21, 2020, 03:39:35 PM »
Does this mean they will now get the first $1200 as well?

Looks like it.

In the case of a return other than a joint return, the $1,200 amount in subsection (a)(1) shall be treated as being zero unless the taxpayer includes the valid identification number of the taxpayer on the return of tax for the taxable year.
‘‘(B) JOINT RETURNS.—In the case of a joint return, the $2,400 amount in subsection (a)(1) shall be treated as being— ‘‘(i) $1,200 if the valid identification number of only 1 spouse is included on the return of tax for the taxable year