May Means Shall

Published on: 06:35AM Apr 02, 2020

A few hours after posting our blog yesterday on the IRS requiring seniors receiving social security to file an income tax return in order to receive their $1,200 payment the IRS came out and said seniors will not have to do this (I don't think our blog post had anything to do with this).

Instead, they will rely on social security records to make the payment.  Also, they should be able to get the required bank information from SSA since almost all social security payments are now direct deposit.

On another note, it will be interesting to see how SBA interprets the rules for self-employed farmers and the Payroll Protection Program.  Likely the simple part is if the farmer has over $100,000 in Schedule F earnings, they will at least qualify for a $20,833 loan.  However, what happens if the farmer nets $200,000 but it shows up on her return as $300,000 gain from trading in equipment and a $100,000 loss on Schedule F.  This farmer is in exactly the same financial position as another farmer who simply shows a $100,000 profit on Schedule F.  Will one farmer get a loan and another not?

Also, what other "payroll costs" will qualify.  Will the SE health insurance costs qualify.  We think they should.  They are similar to health insurance for an employee.  What about retirement plan contributions.  If they are voluntary would they count or not.  

These are some of the questions that SBA needs to answer soon since it appears they will accept applications from self-employed taxpayers on April 10.

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