Behnam Accounting Solutions, Inc

The IRS has not yet issued guidance on how taxpayers who may have been told they owe money under the old tax law can reclaim any money they may have overpaid under the new law. $10,200 in unemployment benefits won't be taxed thanks to American Rescue Plan. A "monkey wrench" in 2020 taxes... Under the changes in the new law, a person who was unemployed for some or all of 2020 could potentially save thousands in taxes. Someone who received $10,200 or more in unemployment benefits, and is in the 10% tax bracket, could save $1,200 on federal income taxes, assuming their adjusted gross income for the year was less than $150,000. (Taxpayers in higher tax brackets would save more.) However, the fact that the tax law was changed a month after the IRS started accepting tax promises further complicate an already challenging filing season. The IRS has not yet issued guidance on how taxpayers who may have been told they owe money under the old tax law can reclaim any money they may have overpaid under the new law. CBS MoneyWatch has reached out for clarification on what those taxpayers should do. Tax pros say it's likely those people will need to file an amended return. But they as well as people who haven't filed yet advise individuals to wait to give the IRS time to issue guidance and for the tax software to catch up with the new law.

Schedule C & PPP Loans Paycheck Protection Program Self-employed: Applying for PPP loans Corporations use their W-2 employee payroll costs to calculate their PPP loan amounts.... When self-employed individuals apply for PPP loans, their average monthly payroll cost figures are substituted by owner compensation. This is calculated by averaging their monthly owner draws. Here’s how you’d do that: Aggregate your 2019 monthly draws in a simple spreadsheet, divide the sum by 12, and you’ll get your monthly average net profit. (If you were only in business for part of 2019, divide by the total number of months you were operating.) Multiply the result by 2.5, and you get your PPP loan amount. (Total 2019 monthly draws / 12) x 2.5 = PPP loan amount As these aren’t technically payroll costs, they don’t include payroll taxes; so unlike corporations, you’ll leave those costs out. Note that your payroll cost amount must exceed $2,400 in order for you to apply. To substantiate the application amount, sole props should provide the following tax documentation: 1040 with a Schedule C and/or 1099 statements Self-employed: PPP loan forgiveness PPP loan forgiveness is pretty easy for self-employed borrowers with no employees. Owner compensation replacement Rather than spending on payroll, self-employed individuals get their compensation reimbursed and forgiven without having to spend it on anything. This is called owner compensation replacement. Your owner compensation replacement value is two and a half months of your net income as reported on your 2019 Schedule C, with an annualized cap of $100,000. That means the maximum possible loan amount is $20,833, with $15,385 automatically eligible for forgiveness as owner compensation replacement. The remaining $5,448 can be forgiven if spent on approved expenses (more on those below) over the 24-week covered period. What else can you spend the loan on? Generally, PPP funds must be used during the allotted 24-week period for payroll. For self-employed folks without employees, all the payroll funds can only be used to pay the owners. What else can self-employed folks use the funds for and still qualify for forgiveness? There are very narrow categories, and all must have been in place prior to February 15, 2020: Rent, including business housing and equipment like computer software or hardware Business utilities, including gas, water, transportation, cable, and software Mortgage interest for pre-existing business property mortgages Required business services that support the production of the businesses product or services Pro tip: COVID-19 supplies are considered business-related expensesor better yet, migration of your website, or software acquisition to help you transition to remote work.

The Feb. 12 start date for individual tax return filers allows the IRS time to do additional programming and testing of IRS systems following the Dec. 27 tax law changes that provided a second round of Economic Impact Payments and other benefits. This programming work is critical to ensuring IRS systems run smoothly. If filing season were opened without the correct programming in place, then there could be a delay in issuing refunds to taxpayers. These changes ensure that eli...gible people will receive any remaining stimulus money as a Recovery Rebate Credit when they file their 2020 tax return. To speed refunds during the pandemic, the IRS urges taxpayers to file electronically with direct deposit as soon as they have the information they need. People can begin filing their tax returns immediately with tax software companies, including IRS Free File partners. These groups are starting to accept tax returns now, and the returns will be transmitted to the IRS starting Feb. 12. Under the PATH Act, the IRS cannot issue a refund involving the Earned Income Tax Credit (EITC) or Additional Child Tax Credit (ACTC) before mid-February. The law provides this additional time to help the IRS stop fraudulent refunds and claims from being issued, including to identity thieves. The IRS anticipates a first week of March refund for many EITC and ACTC taxpayers if they file electronically with direct deposit and there are no issues with their tax returns. This would be the same experience for taxpayers if the filing season opened in late January. Taxpayers will need to check Where’s My Refund for their personalized refund date. Overall, the IRS anticipates nine out of 10 taxpayers will receive their refund within 21 days of when they file electronically with direct deposit if there are no issues with their tax return. The IRS urges taxpayers and tax professionals to file electronically. To avoid delays in processing, people should avoid filing paper returns wherever possible.

The COVID-19 stimulus package passed by Congress will include $350 billion in aid to small businesses. The small businesses are struggling for their very survival due to COVID-19. Thousand of small business owners, operate on very narrow margins, and they are struggling with how their businesses will survive the COVID-19 pandemic. Behnam Accounting can help small businesses navigate this unanticipated economic crisis, and provide them with guidance that they desperately need... at this time. We grateful for the opportunity to be able to give back to these small businesses by providing high-quality assistance. Behnam Accounting Solutions, Inc is offering assistance to small businesses that they can continue to provide incomes for their employees, and goods and services to their communities.

SBA Express Bridge Loans Enables small businesses who currently have a business relationship with an SBA Express Lender to access up to $25,000 quickly. Express Bridge Loan Pilot Program allows small businesses who currently have a business relationship with an SBA Express Lender to access up to $25,000 quickly. These loans can provide vital economic support to small businesses to help overcome the temporary loss of revenue they are experiencing and can be a term loans or use...d to bridge the gap while applying for a direct SBA Economic Injury Disaster loan. If a small business has an urgent need for cash while waiting for decision and disbursement on an Economic Injury Disaster Loan, they may qualify for an SBA Express Disaster Bridge Loan. Terms Up to $25,000 Fast turnaround Will be repaid in full or in part by proceeds from the EIDL loan

Behnam Accounting Solutions is offering new service for SBA loan application: COVID-19 economy injury disaster loan and CARES Act Paycheck Protection Program Assistance for businesses, private nonprofits, homeowners, and renters. Please call our office at 209-835-9655 or email us at [email protected]... #Economyinjurydisasterloan #Paycheckprotectionprogranloan

CARES Act Paycheck Protection Program Assistance.CARES Act Paycheck Protection Program Assistance.

Coronavirus Relief Options Our nation's small businesses are facing an unprecedented economic disruption due to the Coronavirus (COVID-19) outbreak. On Friday, March 27, 2020, the President signed into law the CARES Act, which contains $376 billion in relief for American workers and small businesses. Funding Options... In addition to traditional SBA funding programs, the CARES Act established several new temporary programs to address the COVID-19 outbreak. Image of shield with money in it. Paycheck Protection Program This loan program provides loan forgiveness for retaining employees by temporarily expanding the traditional SBA 7(a) loan program. Circle with document in it and text that says 10,000 dollars. EIDL Loan Advance This loan advance will provide up to $10,000 of economic relief to businesses that are currently experiencing temporary difficulties. Circle with word "express" in it and timer. SBA Express Bridge Loans Enables small businesses who currently have a business relationship with an SBA Express Lender to access up to $25,000 quickly.