Showing posts from May, 2020

Tax-Savings Tips - May 2020

Self-Employed with No Employees? Get Your COVID-19 Cash Now
Get ready for this: “I’m from the government, and I’m here to help.”
Here’s the deal: “I’m going to give you $20,833 today. I want you to give me $5,448 no later than two years from now. You can keep the $15,385 difference, tax-free—no strings.”
It’s true. The lucky recipient could be you. To obtain the full $15,385 tax-free cash result in this deal (one of many COVID-19-related assistance programs), you must
·be self-employed, ·have no employees, and ·have self-employment net profits of $100,000 or more.
If you are self-employed, you have no employees, and your net profits are
·$75,000, you pocket $11,538, tax-free. ·$50,000, you pocket $7,692, tax-free. ·$25,000, you pocket $3,846, tax-free.
The results above come from the COVID-19 Payroll Protection Program (PPP). When you are a self-employed taxpayer with no employees, the PPP treats you as the one and only employee, and treats your net profits as your payroll.
Big Picture
Under the…