Financial Relief During CV19, Pt 2 - 1099 Independent Contractors + Sole Proprietors and a Summary

This week’s blog is Pt 2 to last week’s “Financial Relief Options For Your Small Business During CV-19.” Today I am calling out relief options ($$) for 1099 Independent Contractors and Sole Proprietors. If you are a worker at a business and paid as a contractor - this one’s for you. These rules + caveats also apply to my business owners who file as a Sole Proprietor, and possibly have a business Tax ID number, but are not a formal entity (LLC, Corporation, Partnership). 

To round up this 2-part series I have a short, 5-minute video for you, courtesy of today’s IGTV sponsored by Year of Ours. It’s a brief summary of ALL relief options, and hope for a brighter, stronger tomorrow. (In case you’re dying to see it- the full version of this video can be found on both Year Of Our’s Instagram, my Instagram page, or my YouTube channel.)


CARES ACT - INDV STIMULUS $$


What is it?


The CARES Act is the name of the $2 trillion federal stimulus package that was recently passed in response to the economic crisis we face in light of CV19. As part of the CARES Act, an Individual Stimulus was approved, granting most adults a one-time payment. 


How Much Do I Get?


Most adults are eligible for a one-time $1,200 payment; adult dependents (parents) will receive $500 per child. To be eligible you must:

  • Be a US resident with Social Security Number 

  • Have filed personal income taxes in 2018 and possibly 2019

The $1,200 payment is a sliding scale based on your income:

  • For those whose annual income is up to $75,000, you will receive at least $1,200. 

  • For those who annual income is more than $75,000, but less than $99,000, you will receive a reduced amount. 

  • For those who earn more than $99,000, you are unfortunately not eligible .

For couples who file jointly, the numbers are simply doubled. 

  • You will receive $2,400 if your combined salary is at or below $150,000. 

  • If between $150k and $198k your stimulus will receive a reduced amount. 

  • If you jointly earn more than $198k you are not eligible. 

How Do I Get It?


If your 2018/2019 tax returns have a bank account direct deposit linked to them, your stimulus check will be deposited into that account. If you did not include a direct deposit option in your tax returns, you will receive a hard-copy check by mail. 


It’s been reported that the first individual stimulus checks were sent out Thursday, April 9 via direct deposit. It is also reported that the government will be working from the “bottom, to the top”, meaning that those in the lowest income levels (who presumably need the $$ most) will receive their money first. 


It’s being estimated that it will take months (think - summer) before all stimulus relief checks and deposits have been made. 


Do I Have to Repay It?


No - this is free money to help cover costs incurred by loss of work. You also do NOT have to apply for relief. 


UNEMPLOYMENT 


What Is It?


Pandemic Unemployment Assistance (PUA) for those self-employed, like fitness instructors and wellness professionals (!) who can demonstrate that they are otherwise able to work and available for work, except they are unemployed, partially unemployed, or unable to work because of COVID -19 related reasons. 


**this also applies to those who have been furloughed!


SOUND LIKE SOMEONE YOU KNOW!?!?


In addition to unemployment benefits ($$) you are eligible to receive up to an additional $600/week for the next 13 weeks.