self-employed and stimulus package?

[keziak]

I tried to look up whether we can get a stipend from the stimulus package. What I read seemed to be saying we need to file for unemployment. Is there something else we should be doing, do you know? Do we have to reach the point of no sales to be eligible?

[equid0x]

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@keziak wrote:

I tried to look up whether we can get a stipend from the stimulus package. What I read seemed to be saying we need to file for unemployment. Is there something else we should be doing, do you know? Do we have to reach the point of no sales to be eligible?

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From what I have read so far, indications are that if you filed taxes for 2018 tax year, you'll be getting a stimulus payment by direct deposit, if you have that information on file with the IRS. If not, they will be delivering a check before 12/31/20. 

Unemployment may vary by state. For the states I've resided in, one would only be eligible if they actually paid into it. 

Nevada says this:

"Regardless of how you file your claim, it will be matched against computer records to find out if you worked while claiming benefits. If you worked but did not report earnings and you file a claim, you are committing fraud. Violators will be disqualified for up to 52 weeks or until improperly received benefits are repaid. All cases of fraud can be prosecuted under the law, resulting in fines and jail time."

I actually knew somebody who worked for unemployment here, who told me they basically have no resources to prosecute any such fraud, so they generally don't unless its egregious. 

[nc-daydreamer]

I hope you are mistaken about the date of 12/31/20.  I was o f the understanding it is by 4/6/20.  And even then, that's a long time to make the rent and lights wait.

[andrew547]

Two things come to mind:

1. I believe every taxpayer is going to receive a check. There are limits on the upper end, but I think there are none on the lower end. In other words, if you made a million bucks, you probably won't receive the check but if you made a thousand bucks you will. Don't quote me on this...I am not certain.

2. I also believe the major stimulus will come through unemployment enhancement as well as grants and loans to small and large businesses. If you were laid off, you will get a boost to normal unemployment, which will bring you to near what you were making when you were laid off. However, if you are self-employed, that doesn't apply, so I think you may be eligible for no or low interest loans that may or may not be forgiven when this is all over. Some of this is also tied to employment. Small businesses with some number of employees will receive these grants or loans, and if they keep their workers employed, the loans will be forgiven. This again is not certain...I heard talk of this type of structure from Dems right before the bill passed the Senate, and Dems seemed to consider it a success, so I imagine something like this or similar made it into the bill.

However, if you have no employees, the grants/loans tied to keeping workers on staff may not apply. This is where it's most fuzzy. I can only imagine there will be help for the self-employed with no employees, but I don't have any idea what that is. I could only guess. I think we will learn more in the next few days. There's been a lot of talk about Gig economy workers and taking care of them, and they're in the same boat in that they are self-employed with no employees. I would check the SBA, keep watching the news, and I would think there will be a gov website devoted to helping people and businesses navigate the stimulus package. I haven't seen it yet, but I'm sure one will exist shortly.

[luckythewinner]

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@andrew547 wrote:

I believe every taxpayer is going to receive a check.

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Keep in mind the bill has not even been passed by the house yet. 

I believe the current version will pay $1200 per adult for those who had adjusted gross income of less than $75k on their last tax return (either 2018, or 2019 if they have already filed). 

It tapers gradually to zero from $75k to $99k; i.e. over $99k you get nothing. 

[mam98031]

Self employed people can't file for Unemployment benefits.

@keziak 

[keziak]

Thanks for your thoughtful reply. There certainly are a lot of details that need to be ironed out. My family income will be too much for a payment. It we get one we'll donate it to charity.  My business income is in one sense frivolous. A loan doesn't seem to make sense right now when I have no inventory sources left, nowhere to spend the money.

[cynthealee2]

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@luckythewinner wrote:

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@andrew547 wrote:

I believe every taxpayer is going to receive a check.

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Keep in mind the bill has not even been passed by the house yet. 

I believe the current version will pay $1200 per adult for those who had adjusted gross income of less than $75k on their last tax return (either 2018, or 2019 if they have already filed). 

It tapers gradually to zero from $75k to $99k; i.e. over $99k you get nothing. 

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From what I saw today.... it was 1200 for singles, 2400 for married, and 500 per kid.

On a side note, my 16 yr old had/has a job at a local pizza joint. It was a eat in place and they shut down and told every one to go home... Earlier this week the bosses sent out a message stating they were filing for unemployment for everyone that worked there and something about how they would have to keep it up each Sunday... I have a few issues with this, she's 16 she doesn't need the money, she  had the job for blow money... she can't blow it (as I'm not letting her out to roam then bring the nasties home to mom) so I see no reason for her to get it.  Do we have to go figure out unemployment to stop it? or can we just ignore it? Does she have to take it?

It would be different if she was working FOR something... ie college savings, a car, insurance, bills ect.

[dhbookds]

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@mam98031 wrote:

Self employed people can't file for Unemployment benefits.

@keziak 

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Agree with that, but the stimulus plan apparently has some ways self employed can apply for "lack of employment", for lack of a better term.  Treasury Sec says it will be hard to figure...

That said.......my initial reaction is that if you are selling some amount on ebay, I doubt you could qualify..  your sales may be down, but you are still "working"............  BUT just my idea......until the particulars of the bill are known, it's all speculation.........

[nobody*s_perfect]

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@cynthealee2 wrote: .. she can't blow it (as I'm not letting her out to roam then bring the nasties home to mom) so I see no reason for her to get it....It would be different if she was working FOR something... ie college savings, a car, insurance, bills ect.

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Can't she shop online (maybe even on eBay?) or put it into her college fund, or just save for a rainy day?

[fern*wood]

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@keziak wrote:

Thanks for your thoughtful reply. There certainly are a lot of details that need to be ironed out. My family income will be too much for a payment. It we get one we'll donate it to charity.  My business income is in one sense frivolous. A loan doesn't seem to make sense right now when I have no inventory sources left, nowhere to spend the money.

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I can't imagine sharing that information here, but thanks for donating the money since you say you don't need it.

[mcdougle4248]

@keziak 

Here are a couple of links I have found that may be of interest.

https://www.nytimes.com/article/coronavirus-stimulus-package-questions-answers.html  

https://www.law.cornell.edu/cfr/text/20/625.6  

[bar-29368]

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@mam98031 wrote:

Self employed people can't file for Unemployment benefits.

@keziak 

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Actually under the stimulus package self employed & gig workers will be eligible to claim UE benefits. However, that said, probably won't cover ebay sellers as one of the criteria is "unable to work from home".

[glgenterprise]

I believe that there is an allowance for self-employed people whose states are declared major disaster areas. But it requires your home state to be declared a major disaster. I know Michigan's governor just filed the request with the president in the past day or two.

https://www.benefits.gov/benefit/597

Bear in mind though, you're supposed to be truly unemployed - not just reduced sales.

[denverdonna]

She's only 16! Use this as a teaching moment on why to save for a rainy day. Put 90% in savings that she can not access without your consent... the rest she can use on any legal thing she wants. Don't punish her because she is being rewarded for her past and future work. Believe me, she will hold a grudge against you for decades!