The Senate Bill and possible financial assistance

I file my taxes. My regular income and then a decent amount of 1099 generated MSC money. I pay taxes on the 1099 dollars. I don't think I can receive unemployment money in my state, NY, as a "contractor". But on my Federal and State income taxes I file a portion as a business, minus some incidental expenses, and pay taxes on the balance. Outside of the $1200 one time check do I qualify somewhere along the line for lost income? There are no more available shops in my area and I work for appx 15 MSCs so I'm not turning down business.

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So you still have your regular income or not?

Equal rights for others does not mean fewer rights for you. It's not pie.
"I prefer someone who burns the flag and then wraps themselves up in the Constitution over someone who burns the Constitution and then wraps themselves up in the flag." -Molly Ivins
Never try to teach a pig to sing. It's a waste of your time and it really annoys the pig.
Looks like you may also file for unemployment, as it's supposedly expanded to cover ICs and "gig" workers.

And remember, that $1200 is not a gift. It's an "early tax rebate", which I interpret to be a tax refund on this calendar year's taxes. We'll have to pay it back next year.

sad smiley

That, however, is merely my interpretation. And I remember having to repay the "stimulus money" in 2008.
@ceasesmith wrote:

Looks like you may also file for unemployment, as it's supposedly expanded to cover ICs and "gig" workers.

And remember, that $1200 is not a gift. It's an "early tax rebate", which I interpret to be a tax refund on this calendar year's taxes. We'll have to pay it back next year.

sad smiley

That, however, is merely my interpretation. And I remember having to repay the "stimulus money" in 2008.

I'm not sure any of this is the case.

Unemployment being expanded to cover self employed wouldn't be a factor in this case. If the OP has lost their full time job then they probably will max out unemployment. If they have not lost their job they will not be eligible for unemployment.

As for the $1200 stimulus check, you are correct that the last one was an early tax rebate but I'm fairly certain this one is not.

There are reasons that a body stays in motion
At the moment only demons come to mind
As I read the news coverage, the bill provides for new, federal unemployment coverage. The coverage extends to self-employed gig workers and provides an amount equal to what you would get from your state if you were eligible as a gig worker. In addition, the bill provides an additional $600 a week, or "up to" $600 a week depending on which news source you're reading, for all eligible workers, with eligible workers being defined as giggers, ICs, self-employed, etc.. I've heard nothing about how such "eligible workers" need to go about proving that they've lost work. I'm sure it's in there somewhere. As to whether you have to pay back the $1200, I have no idea.
From my understanding only gig workers for certain organizations will be able to file unemployment (i.e. Uber, Doordash etc...). Anyone else had to have a qualifying job for an organization that paid into the unemployment insurance funds.
I haven't seen restrictions though I have seen those used as examples. There are far more freelancers and IC workers than just those.

Equal rights for others does not mean fewer rights for you. It's not pie.
"I prefer someone who burns the flag and then wraps themselves up in the Constitution over someone who burns the Constitution and then wraps themselves up in the flag." -Molly Ivins
Never try to teach a pig to sing. It's a waste of your time and it really annoys the pig.
Isn't unemployment insurance...as in employers pay a premium so affected employees get paid if they are let go? Would would we, as ICs, be eligible?

"There's so much trouble in this world; surrounded by miracles" - Citizen Cope
You haven't been paying attentionsmiling smiley The stimulus bill includes provisions for 1099 workers to get temporary unemployment.

Equal rights for others does not mean fewer rights for you. It's not pie.
"I prefer someone who burns the flag and then wraps themselves up in the Constitution over someone who burns the Constitution and then wraps themselves up in the flag." -Molly Ivins
Never try to teach a pig to sing. It's a waste of your time and it really annoys the pig.
@grille wrote:

From my understanding only gig workers for certain organizations will be able to file unemployment (i.e. Uber, Doordash etc...). Anyone else had to have a qualifying job for an organization that paid into the unemployment insurance funds.

Not true in the least bit. Unemployment will be available to regular employees, 1099 workers, and self employed.

There are reasons that a body stays in motion
At the moment only demons come to mind
The bill greatly expands the whole idea of unemployment insurance. It creates a federal program and stretches it to cover gig workers and self-employed people who have paid no unemployment insurance premiums. The state programs are unaffected, though they may be used as reference points in determining some amounts.

Nothing is final yet but that's how it's shaping up so far.

@HonnyBrown wrote:

Isn't unemployment insurance...as in employers pay a premium so affected employees get paid if they are let go? Would would we, as ICs, be eligible?
From personal experience after a hurricane, and what I've read, self-employed unemployment benefits usually are about half of what a W-2 worker gets, and they usually get about half their wages. So we would get about a quarter of our reported average weekly profit, plus the $600 a week. Each state does it a little differently, so the amounts will vary, but the $600 should remain the same, if what major news outlets are reporting holds true.

Based on my previous experience, and the current law (https://www.law.cornell.edu/cfr/text/20/625.6), our "wages" will be determined by what we reported as income in our latest tax filing. If you haven't yet filed your 2019 taxes, and you made more in 2018, you may want to do further research to see if delaying your filing might increase your benefits, and vice versa.
It is my understanding that all workers will get benefits based on the same chart. And I believe you are correct, if you have not filed for 2019 yet and you made more on 2018 it is a good idea to wait.

There are reasons that a body stays in motion
At the moment only demons come to mind
Yeah...my head is spinning.

@LisaSTL wrote:

You haven't been paying attentionsmiling smiley The stimulus bill includes provisions for 1099 workers to get temporary unemployment.

"There's so much trouble in this world; surrounded by miracles" - Citizen Cope
@coolpurple wrote:

I file my taxes. My regular income and then a decent amount of 1099 generated MSC money. I pay taxes on the 1099 dollars. I don't think I can receive unemployment money in my state, NY, as a "contractor". But on my Federal and State income taxes I file a portion as a business, minus some incidental expenses, and pay taxes on the balance. Outside of the $1200 one time check do I qualify somewhere along the line for lost income? There are no more available shops in my area and I work for appx 15 MSCs so I'm not turning down business.

That's an interesting question since so many people have side gigs in addition to full time jobs. I don't have an answer, but I can't see them giving unemployment benefits to people who also have full time jobs that are still paying a salary.
Exactly. I don’t know how people can’t understand this. All 1099, self employed, and gig workers will get it if they filed taxes returns and have proof
Yes your full time job would get what they use to come up with the amount and the $600 added to it
Yep you nailed it. I’ve been trying to explain this all day to people, but they don’t believe it
Regarding paying the stimulus back, I read this information on a Kiplinger article:

However, even if you don't get a check now, you won't lose out on the money—you'll just have to wait until next year to get it. The way the law is written, the checks that will be sent now are actually just advanced payments of a new refundable tax credit for the 2020 tax year. So, if you don't get a stimulus payment in 2020, you can claim it next year as a refund or reduction of the tax you owe if you file a 2020 tax return by April 15, 2021.

Also in the same article...

Will the Money I Get Now Be Taxed Later?

No. As we mentioned earlier, the check you receive is really just an advanced payment of a tax credit for the 2020 tax year. As such, it won't be included in your taxable income.

Edited 1 time(s). Last edit at 03/27/2020 05:16AM by 1forum1.
I hope I stand corrected. I jut found this on nbcnews.com.

Q: I'm self-employed and didn't previously qualify for unemployment. Am I eligible now?

Yes. This bill creates a new program, called Pandemic Unemployment Assistance, that extends benefits to gig workers, contractors and others who wouldn't otherwise qualify for unemployment compensation but cannot work due to the coronavirus emergency. You'll get the $600 per week, plus half the average unemployment benefit in your state.
Yes, I saw the article on whether the payment of $1200 per adult will be taxable income.

So, the consensus is that it will not be considered taxable income. And we won't have to repay it.

But the people writing the articles have not said they have read the proposal. So we don't know anything yet.

Fingers crossed....
does anyone know where we can find exactly what was written in the bill? it might be easier to just go to the source rather than read an interpretation from a news article.
Looks like the details are slowing coming out: [www.nytimes.com]

Some highlights:

@ wrote:

Stimulus Payments
How large would the payments be?

Most adults would get $1,200, although some would get less. For every qualifying child age 16 or under, the payment would be an additional $500.

How many payments would there be?

Just one. Future bills could order up additional payments, though.

How do I know if I will get the full amount?

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It depends on your income. Single adults with Social Security numbers who are United States residents and have an adjusted gross income of $75,000 or less would get the full amount. Married couples with no children earning $150,000 or less would receive a total of $2,400. And taxpayers filing as head of household would get the full payment if they earned $112,500 or less.

Above those income figures, the payment decreases until it stops altogether for single people earning $99,000 or married people who have no children and earn $198,000. According to the Senate Finance Committee, a family with two children would no longer be eligible for any payments if its income surpassed $218,000.

You can’t get a payment if someone claims you as a dependent, even if you’re an adult. In any given family and in most instances, everyone must have a valid Social Security number in order to be eligible. There is an exception for members of the military.

You can find your adjusted gross income on Line 8b of the 2019 1040 federal tax return.

@ wrote:

Would I have to apply to receive a payment?

No. If the Internal Revenue Service already has your bank account information, it would transfer the money to you via direct deposit based on the recent income-tax figures it already has.

When would the payment arrive?

Treasury Secretary Steven Mnuchin said he expected most people to get their payments within three weeks.

@ wrote:

Would most people who are receiving Social Security retirement and disability payments each month also get a stimulus payment?

Yes.

Would eligible unemployed people get these stimulus payments? Veterans?

Yes and yes.

Do I have to pay income taxes on the amount of my payment?

No.

If my income tax refunds are currently being garnished because of a student loan default, would this payment be garnished as well?

No. In fact, the bill temporarily suspends nearly all efforts to garnish tax refunds to repay debts, including those to the I.R.S. itself. But this waiver may not apply to people who are behind on child support.

Unemployment Benefits
Who would be covered by the expanded program?

The new bill would wrap in far more workers than are usually eligible for unemployment benefits, including self-employed people and part-time workers. The bottom-line: Those who are unemployed, are partly unemployed or cannot work for a wide variety of coronavirus-related reasons would be more likely to receive benefits.

@ wrote:

Unemployment Benefits
Who would be covered by the expanded program?

The new bill would wrap in far more workers than are usually eligible for unemployment benefits, including self-employed people and part-time workers. The bottom-line: Those who are unemployed, are partly unemployed or cannot work for a wide variety of coronavirus-related reasons would be more likely to receive benefits.

How much would I receive?

It depends on your state.

Benefits would be expanded in a bid to replace the average worker’s paycheck, explained Andrew Stettner, a senior fellow at the Century Foundation, a public policy research group. The average worker earns about $1,000 a week, and unemployment benefits often replace roughly 40 to 45 percent of that. The expansion would pay an extra amount to fill the gap.

Under the plan, eligible workers would get an extra $600 per week on top of their state benefit. But some states are more generous than others. According to the Century Foundation, the maximum weekly benefit in Alabama is $275, but it’s $450 in California and $713 in New Jersey.

So let’s say a worker was making $1,100 per week in New York; she’d be eligible for the maximum state unemployment benefit of $504 per week. Under the new program, she gets an additional $600 of federal pandemic unemployment compensation, for a total of $1,104, essentially replacing her original paycheck.

States have the option of providing the entire amount in one payment, or sending the extra portion separately. But it must all be done on the same weekly basis.

Are gig workers, freelancers and independent contractors covered in the bill?

Yes, self-employed people would be newly eligible for unemployment benefits.

Benefit amounts would be calculated based on previous income, using a formula from the Disaster Unemployment Assistance program, according to a congressional aide.

Self-employed workers would also be eligible for the additional $600 weekly benefit provided by the federal government.

What if I’m a part-time worker who lost my job because of a coronavirus reason, but my state doesn’t cover part-time workers? Would I still be eligible?

Yes. Part-time workers would be eligible for benefits, but the benefit amount and how long benefits would last depend on your state. They would also be eligible for the additional $600 weekly benefit.

What if I have Covid-19 or need to care for a family member who has it?

If you’ve received a diagnosis, are experiencing symptoms or are seeking a diagnosis — and you’re unemployed, are partly unemployed or cannot work as a result — you would be covered. The same goes if you must care for a member of your family or household who has received a diagnosis.

What if my child’s school or day care shut down?

If you rely on a school, a day care or another facility to care for a child, elderly parent or another household member so that you can work — and that facility has been shut down because of coronavirus — you would be eligible.

Shopping the Greater Denver Area, Colorado Springs and in-between in Colorado. 30 year old male and willing to travel! Badged for Denver International Airport.
@bgriffin wrote:

@ceasesmith wrote:

Looks like you may also file for unemployment, as it's supposedly expanded to cover ICs and "gig" workers.

And remember, that $1200 is not a gift. It's an "early tax rebate", which I interpret to be a tax refund on this calendar year's taxes. We'll have to pay it back next year.

sad smiley

That, however, is merely my interpretation. And I remember having to repay the "stimulus money" in 2008.

I'm not sure any of this is the case.

Unemployment being expanded to cover self employed wouldn't be a factor in this case. If the OP has lost their full time job then they probably will max out unemployment. If they have not lost their job they will not be eligible for unemployment.

As for the $1200 stimulus check, you are correct that the last one was an early tax rebate but I'm fairly certain this one is not.

I'm not certain that the stimulus has to be paid back. From what I'm reading, the "tax rebate" reads more like a "tax credit," meaning that it's pulling people ahead by $1,200, if you qualify... Please of course correct me if I'm misinterpretting:

@ wrote:

What if my recent income made me ineligible, but I anticipate being eligible because of a loss of income in 2020? Do I get a payment?

The bill does not help people in that circumstance now, but you may benefit once you file your 2020 taxes. That’s because the payment is technically an advance on a tax credit that is available for the entire year. So it will depend on how much you earn.

Meanwhile, there are many other provisions in the legislation. You may be able to file for unemployment or for one of the new loans for small-business owners or sole proprietors.
Source: [www.nytimes.com]

Shopping the Greater Denver Area, Colorado Springs and in-between in Colorado. 30 year old male and willing to travel! Badged for Denver International Airport.
No, you do not have to pay it back. If you get the $1200 this year, you don't even have to pay taxes on it next year. It is essentially a tax credit, paid in advance. If you do not get the $1200 this year, you would actually deduct your taxable income (as a tax credit) by $1200 next year. Of course, these scenarios assume one qualifies in the first place.
@1forum1 wrote:

No, you do not have to pay it back. If you get the $1200 this year, you don't even have to pay taxes on it next year. It is essentially a tax credit, paid in advance. If you do not get the $1200 this year, you would actually deduct your taxable income (as a tax credit) by $1200 next year. Of course, these scenarios assume one qualifies in the first place.

Or disqualify you. So if you end up making $99k or $199k married this year, I believe the tax credit becomes refundable, even though let’s say they qualified for it in 2019 or 2018?

Shopping the Greater Denver Area, Colorado Springs and in-between in Colorado. 30 year old male and willing to travel! Badged for Denver International Airport.


Edited 1 time(s). Last edit at 03/27/2020 04:11PM by Tarantado.
If you think about it, it would not make much sense for the government to just automatically place everyone in debt $1200 or so in this time of need. They can't do that, but they can give money away. They do that all the time with tax breaks and tax credits. The last thing people need to worry about is how they are going to pay an additional debt of $1200 back. This is a gift. The government hopes it helps people in need and they know all of it will be circulated in the economy.
@Tarantado

Either you're qualified or you're not. If a person is not qualified, then they ain't gettin nothin. If you are qualified, you got a free gift in the form of a check or tax credit.
Thanks to everyone who has contributed. I made more from IC work in 2019, so I had better get going on my taxes!
The bill has been passed!

There are reasons that a body stays in motion
At the moment only demons come to mind
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