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US Market for Self Employed after Pandemic
With the COVID-19 pandemic still in full swing and multiple stimulus packages in the works, how will Self Employed individuals fare? It is a difficult question, as their investments most likely just tanked, many are now unable to work due to the multiple stay at home orders and many do not know if they will be able to partake in the stimulus plan. Generally the self employed get left in the gaps that stimulus packages don’t fill. This time they may have small amounts of relief available.
It is now in the stimulus plan to take tax credits for paid sick leave for the self employed.
This does not help with immediate cash flow but can come back to save your company at the end of the year. It will apply from April 1st 2020 on and looks like it goes to the end of the year. If you are desperate for tax it looks like that burden can be deducted from income tax accordingly each month. This applies for 10 sicks days and does not have to be corona virus specific. As long as you are able to calculate you average daily income, you should able to apply the credit.
Due to the closing of schools and many daycares across the country there is also a paid caretaker clause in the stimulus bills
. This means you can earn up to 67% of your income per day to take care of your loved ones if necessary. This can bee up to 200 dollars a day, and you can get 50 of these days in tax credits.
There is also going to be an expansion of unemployment insurance which is usually not available for the self employed. It is being labeled the pandemic unemployment assistance. It will be a difficult choice to choose between unemployment or caregiving leave depending on the amount of cash flow you currently have. Investing in successful companies like American FX Capital
who are thriving during this time is a great week to keep your cashflow strong. At least if can give you a leg up to get through until tax credits will come back to you as a refund at the end of the year.
One major caveat to these benefits is that you must be turned down by your state first in order to receive them. Some states do care for self employed individuals in need and therefore would not be eligible for the federal government's program. As always we are not giving financial advice just looking at the market and economy and giving our thoughts on it. Please see a broker, investment firm or attorney for financial advice.
US Market for Self Employed after Pandemic
With the COVID-19 pandemic still in full swing and multiple stimulus packages in the works, how will Self Employed individuals fare? It is a difficult question, as their investments most likely just tanked, many are now unable to work due to the multiple stay at home orders and many do not know if they will be able to partake in the stimulus plan. Generally the self employed get left in the gaps that stimulus packages don’t fill. This time they may have small amounts of relief available.
It is now in the stimulus plan to take tax credits for paid sick leave for the self employed.
This does not help with immediate cash flow but can come back to save your company at the end of the year. It will apply from April 1st 2020 on and looks like it goes to the end of the year. If you are desperate for tax it looks like that burden can be deducted from income tax accordingly each month. This applies for 10 sicks days and does not have to be corona virus specific. As long as you are able to calculate you average daily income, you should able to apply the credit.
Due to the closing of schools and many daycares across the country there is also a paid caretaker clause in the stimulus bills
. This means you can earn up to 67% of your income per day to take care of your loved ones if necessary. This can bee up to 200 dollars a day, and you can get 50 of these days in tax credits.
There is also going to be an expansion of unemployment insurance which is usually not available for the self employed. It is being labeled the pandemic unemployment assistance. It will be a difficult choice to choose between unemployment or caregiving leave depending on the amount of cash flow you currently have. Investing in successful companies like American FX Capital
who are thriving during this time is a great week to keep your cashflow strong. At least if can give you a leg up to get through until tax credits will come back to you as a refund at the end of the year.
One major caveat to these benefits is that you must be turned down by your state first in order to receive them. Some states do care for self employed individuals in need and therefore would not be eligible for the federal government's program. As always we are not giving financial advice just looking at the market and economy and giving our thoughts on it. Please see a broker, investment firm or attorney for financial advice.