Business owner income

Forum|Forum|6 years ago
April 23, 2020
2 replies
22 views

I have a business client who did not pay himself with W2 or 1099. Is he eligible for the government stimulus check?

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George4Tacks

Level 15

He may be eligible for Unemployment https://www.dol.gov/coronavirus/unemployment-insurance

Stimulus payment rules are here https://www.irs.gov/newsroom/how-to-use-the-tools-on-irsgov-to-get-your-economic-impact-payment

U.S. citizens, permanent residents, and resident aliens are likely eligible for an Economic Impact Payment if they meet all these requirements:

Have a valid Social Security number,
Could not be claimed as a dependent by another taxpayer, and
Had adjusted gross income under certain limits.

Answers are easy. Questions are hard!

IRonMaN

Level 15

@tbtaxa wrote:
I have a business client who did not pay himself with W2 or 1099. Is he eligible for the government stimulus check?

Out of curiosity, how did he pay himself?

Slava Ukraini!

qbteachmt

Level 15

A "business client" filing Sched C never "pays" themselves through payroll (W2) or sends themselves a 1099-Misc.

But that makes them a Tax Filer, which puts them in the qualification pool for a stimulus check, assuming they meet the other qualifications, as a 1040 filer.

Are you asking about the $1,200 stimulus check for Individuals?

Have you read any of the regulations or notices or public releases or news on this function?

Don't yell at us; we're volunteers

N

Nick MacDonald

Level 3

Are you talking about the PPP (Payroll Protection Program)?

Yes, a self-employed business owner is eligible. In general, the loan qualification is based on 2019 Schedule C profit on Line 31. Other rules may apply if it is a new business. Check for Q&A documentation for Independent contractors and self-employed individuals on SBA.gov.

Also, apply fast at a local bank, smaller community banks are best. The funds won't last long.

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