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F.A.Q - COVID Economic Questions

F.A.Q. COVID-19 Economic Relief

Q: If I have a green card will I get a stimulus check?

A: Stimulus checks are only being sent to those that have a valid social security number.

Q: Do I have to file a tax return for ’19 to get a loan.

A: List of deliverables I received from two banks state that 3 years’ worth of tax returns are needed. If one of those years is not ’19 a profit and loss for ’19 is needed.

Q: If I get a paycheck protection loan will I still get unemployment.

A: If you get a PPP loan it will be reduced by the amount your receiving from unemployment. Since unemployment is a limited amount and your PPP is based on your actual income you will probably get more from the PPP loan than unemployment but you can still get unemployment. The updates will also be posted on our website here.

Q: If I get unemployment do I have to look for a job?

A: Gov. Doug Ducey removed the work search requirements for people who apply for unemployment (temporarily). If you’re a sole-proprietor applying for unemployment it’s expected that you’d continue your own work when your able to. The website has not yet been updated to remove the requirement so it seems as if you will have to file your work search history. However, note that AZ DES is behind on making updates to their site.

Q: Can my employees apply for unemployment when I’ve cut their hours. 

A: Anyone who has lost income as a result of the Covid situation can file for unemployment. Even if they have only lost a portion of their income.

Q: Does the IRS know I had a child last year or do I have to file to get the additional $500?

A: While the social security administration knows you had a child last year as far as we can tell at this point the IRS is not going to automatically send the additional $500 for your new addition. You should file your ’19 return to show that child’s social on your return.  If you have a child in 2020 you will receive the additional tax credit on your 2020 return. 

Q: When will unemployment benefits kick in?

A: As of Friday DES has stated it will take about 21 days to process claims. The agency did hire more people but obviously claims are at a record high jumping from 3500 in a week to over 80k.  There is an expectation that 100k will apply next week. None of these agencies were prepared for the massive amount of people applying for benefits. There infrastructure is not keeping up with the demand. Make sure you login to the site to ensure your application was received as when systems go down due to too many people applications are getting lost.  We’ve been running into this problem with all government sites.

Q:  As a college student with small amount of income will I get the stimulus check.

A: College students age 19-23 are not eligible for the stimulus checks.

    Children age 17-18 will not get the $500 additional payment per child.

Q: Am I out of luck if I miss the timeline that they are sending the checks?

A: The payments will continue being sent throughout 2020 as eligibility is established. There is no cut-off as there was in 2008 when we had similar payments.

If you do not get a check and end up being eligible you will get a credit on your 2020 return.

Q:  Why can’t I just get the 10k grant from the SBA under 7b and refuse the loan and get the forgivable loan under 7a.

A: The language of the regulations state the 10k advance will be a grant IF your denied. There is also language in the released SBA guidelines that state the 10k will reduce the amount provided under 7a Paycheck Protection if you were denied a disaster loan. While it appears the 10k will not be forgiven unless your denied. It is also appears that even if it was to turn into a grant it would just reduce the 7a funds. What’s not clear is if the 10k will only reduce the 7a funds or be subject to the same spending requirements as the 7a funds (ie: spent on payroll, utilities, mortgage interest and rent). At this point the more guidance we get the more questions we have.

Q: Do low income people receive the stimulus payments?

A: Yes those that normally do not have to file an income tax return will get a stimulus payment. The IRS intends to use the 1099s from social security to find all seniors. It’s not clear how they will find the low income that normally does not file taxes. The quickest way would be to file. There is a free resources for those that file very simple returns.

Q: What are considered essential services in the Arizona stay at home order?

A:

o   Health care and public health operations, including hospitals, public health entities, distributors of personal protective equipment and biotechnology companies;

o   Human services operations, including those that provide services for the elderly, those with developmental disabilities, foster and adoption children and the homeless;

o   Infrastructure operations, including food production, utility operators, construction and internet providers;

o   Government functions, including first responders, emergency management personnel, 911 operators, child protection staff, welfare providers and more;

o   Business operations, including grocery and medicine providers, outdoor recreation;

o   Organizations that provide charitable and social services, including religious and secular non-profit organizations and food banks;

o   Media organizations, including newspaper, television, radio and other media services; 

o   Gas stations and other transportation-related businesses;

o   Financial institutions, including banks and credit unions; 

o   Hardware and supply stores;

o   Critical trades, including plumbers, electricians, cleaning, sanitation, HVAC and security staff;

o   Mail, post, shipping and logistics; 

o   Education institutions, including public and private K-12 schools, universities and research entities; 

o   Laundry services; 

o   Restaurants for consumption off-premises; 

o   Supplies distributors that enable telework and work from home and those that supply essential businesses; 

o   Transportation, including airlines, taxis, and ride-sharing;

o   Home-based and care services, including for seniors and those with developmental disabilities;

o   Residential facilities and shelters, including those for children, seniors or at-risk populations;

o   Professional services, including legal, real estate and accounting services; 

o   Day care centers for employees exempted though the order;

o   Manufacturers, distribution and producers of supply chain-critical products;

o   Hotels and motels;

o   And funeral services. 

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