The coronavirus pandemic has caused an extraordinary situation that is impacting not only our daily lives but our businesses and livelihoods. Here are some resources and answers to common questions I have been getting.
What are the new tax return due dates?
When are Q1 tax payments due?
Will I get the for individuals and families? When will it arrive?
What financial assistance is available for small businesses?
NOTE: This information is not intended to provide complete guide, qualifications, or details. Please click the links provided and reference the official federal, state and other program websites for complete and accurate information.
What are the Tax Due Dates for MN and the IRS?
Short answer:July 15th
Details: The IRS and MN Department of Revenue have pushed back the April 15th due date to July 15th. No extension needs to be filed. Tax payments due with these returns are also due July 15th.
Resource Links: Due dates for MN Dept of Revenue and the IRS
When are Q1 Quarterly Tax Payments Due?
Short answer: MN = April 15th , Federal = July 15th
Details: If you are a self-employed taxpayer or small business owner who makes quarterly estimated tax payments, the Q1 tax payment to the IRS has been pushed back to July 15th. However, the MN Department of Revenue has not conformed with the IRS in this regard. The Q1 MN estimated tax payment is still due April 15th.
Resource Links: Q1 payment due dates for MN Dept of Revenue and the IRS
Will I get the Tax Rebate? When will it arrive?
Short answer: Soon, if you qualify based on income
Details: Federal rebate checks for individuals and families, also called IRS Economic Impact Payments, have already started arriving for those who are eligible - but there are income limits to qualify.
Qualification
A single person with adjusted gross income of up to $75,000 will receive $1,200.
When that single person's adjusted gross income hits $99,000 they will not receive any rebate. A married couple with adjusted gross income of $150,000 will receive a $2,400.
When their adjusted gross income hits $198,000 they will not receive a check.
There will be an additional $500 per child under age 17 for people receiving checks above.
For taxpayers with income above these numbers, there is a sliding scale for partial amounts with an AGI up to 99K for individuals, and married couples up to $198K.
Examples
Example 1: a married couple with a combined income of $125, 000 and two kids under 18 will receive $3,400 ($1,200 x 2= $2,400 plus 2 x $500=1,000)
Example 2: a single person with adjusted gross income of $71,000 and 1 kid under 18 would receive $1,700 ($1,200 x 1 = $1,200 plus $500 x 1=$500)
Timing of checks
If the IRS has your bank account information because you received a refund when you filed your 2018 tax return, this payment will be made to you via direct deposit. The IRS is working on a website portal where taxpayers could enter their banking information to ensure their rebate checks are direct deposited.
Resource Link: IRS Economic Impact Payment Information
What Small Business Financial Assistance is Available?
Short answer: Federal, state, and local relief programs
Details:
Federal programs, state and Local resources have been available, however, some funding has run out and discussion about additional funding continue.
NOTE: This information is intended to provide or replace qualifications and details about the programs. Please click the links to the EIDL and PPP for full details.
Federal Programs:
Federal programs include the EIDL and the PPP programs. You can apply for both programs if you qualify. However, it was announced April 17th that the PPP had run out of funding. Additional government support is in discussion but no additional action has been taken.*
Economic Injury Disaster Loan (EIDL) through the SBA This loan advance provides up to $10,000 of economic relief to businesses that are currently experiencing temporary loss of revenue.
Q & A
How much can I get? up to $10,000
Is it subject to income tax? No
If forgiven, will it be subject to income tax? No
How do I apply? Directly with the SBA
When are funds available? Funds will be made available following a successful application.
Is it a loan or grant? This loan advance will not have to be repaid.
Where can I find more information? Economic Injury Disaster Loan (EIDL) through the SBA
*Paycheck Protection Program Forgivable Loan The Paycheck Protection Program is a loan designed to provide a direct incentive for small businesses to keep their workers on the payroll.
Q & A
How much can I get? 2 ½ times your monthly payroll.
Is it a forgivable loan? SBA will forgive loans if all employees are kept on the payroll for eight weeks
What do I have to spend the PPP proceeds on? 75% payroll. Rent, mortgage interest, utilities.
When can I apply? Starting April 3, 2020. It will be available through June 30, 2020.
How do I apply? With a bank
Where can I apply? Any SBA 7(a) lender, federally insured depository institution, credit union or Farm Credit System institution that is participating.
Some banks are having a hard time processing – can I apply to more than one bank? Yes
As sole proprietor/independent contractor with no employees – Can I qualify for the PPP? Yes
Minnesota/Local Programs:
These may vary by where you live and do business, as well as the type of relief you need.
Find resources here:
MN Chamber of Commerce Loans and Grants: MN Chamber of Commerce Toolkit