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Business owner income

tbtaxa
Level 1

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

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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?

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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?

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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.