PPP for Sole Proprietors - EVERYTHING you need to know (independent contractors, 1099, Schedule C)

[@ClaraCFO]

NOTE!!!! THIS VIDEO DOES NOT TAKE INTO ACCOUNT THE LATEST SBA GUIDANCE USING GROSS RECEIPTS AS THE BASIS OF LOAN CALCULATION - Any reference to Line 31 of Schedule C has now been updated to line 1 of schedule C. Guidance pending.....

[@hazelwell8843]

Is Smart Biz a reputable source to apply with?

[@everettmcallister6097]

@@hazelwell8843 I used SmartBiz for my ppp 1st round two weeks ago got the money two days ago

[@jayharris7097]

What if i started my business not too long ago don't have bank statements

[@everettmcallister6097]

@@jayharris7097 I used a cash app screenshot since I get paid in cash and other ways

[@jayharris7097]

@@everettmcallister6097 what about personal receipts and also some cash app

[@TheMotownhustler]

I prayed for God to bless you and open doors for you and close doors of haters against you. Thank you for your help. You are a great blessing to many people.

[@dct124]

By far the most uncomplicated explanation. Thanks love 👊🏾

[@courtneyloechl2287]

This was AMAZINGLY helpful!! I'm so happy I found you through your (also awesome) FBomb workshop today!

[@shahiqbal4210]

Great information. Especially for those who will be using the 2020 schedule and did not file taxes yet..

[@ClaraCFO]

Thanks for watching!

[@AngelSouls]

I’m a sole proprietor working from home. What is best practice for paying a portion of my rent & utilities from PPP, and can that 40% be used for business subscriptions, marketing consulting or editing services? Also, what is allowable to use the money for after you pay yourself? Would we need documentation on what that money was used for? Thank you!

[@PointsPointers]

Hi Hannah! First of all I want to say your videos about the PPP loan have been very helpful for me. Thank you! I have a question, I submitted an application for the first draw and I used a draft of my schedule C and I used line 31. My accountant recommended that I contribute more to my SEP IRA to lower my tax bill... now when I finalize my taxes my schedule C will change from the draft I submitted but it won’t materially change the number for line 31 and the calculation will be the same. Is that ok? Thanks!

[@smalberunisiddiqui7607]

Hi, pointes can you tell me how to fill out draft schedule c?

[@PointsPointers]

@@smalberunisiddiqui7607 my accountant did it for me

[@mikemccollum2281]

Everything has changed u can have a negative line 31 and still receive PPP because they are going by gross now which is line 7...

[@ClaraCFO]

Yep! Hence the updates in the comments and this new video: kzbin.info/www/bejne/bXOklqukrdqNbJY

[@jrock1540ify]

I didn’t file a schedule C an I still got approved how does that work ?

[@TomMarvan]

Great video. My understanding is that one may now be eligible for the loan based on line 7 of schedule C (Gross Income) and not Line 31 (Net Income). Many last year did not qualify because they had a loss (line 31), but with the new apparent calculation many may now qualify. Also, those that received funds in round 1 and have not received forgiveness may go back and adjust based on line 7.

[@ClaraCFO]

Yes! We are waiting on rules. This video was published before that information was announced. Will update asap!

[@TomMarvan]

@@ClaraCFO Yes, I just noticed your video date right after posting my comment. Still, I thought I would leave it there as it may help others. Things are changing daily! Great videos as always, thank you.

[@zacharyfair6738]

Just want to say thank you. Just got my $8300 loan forgiven.

[@ClaraCFO]

Awesome!!! Congrats!

[@rachidazougagh3757]

Hi.2.5 months equal 10.888 weeks .it's almost 11 weeks.could I choose 11 weeks as covered period?? Please looking for answer.

[@ClaraCFO]

Yes! 11 weeks is the recommendation I am giving people.

[@rachidazougagh3757]

Thank you 💓

[@josemarquez5364]

When applying for forgiveness do you apply for forgiveness for each draw? Or can you apply for forgiveness for both at the same time?

[@cecym96]

Can you please upload a video on how these ppp loans will affect us on our taxes .. thank you. Love your page

[@ClaraCFO]

Here you go! kzbin.info/www/bejne/pJLbf4itormsiJo

[@Key4hire]

What if, I have been doing business but never filed a schedule C would I need to create one? If approved then file it? Don't want fraud to happen to me!??!

[@tajalex6822]

Thank you Clara! Your videos are very clear and easy to watch. We appreciate your time and will continue following your channel.

[@ClaraCFO]

Thanks for being here!

[@lutonyajohnsontv6069]

Most banks will not even allow you to apply for the PPP without having an business account 1st

[@jelloo7600]

So I’m self employed and let me kno if I understand this correctly we use the loan for the 8 week period and can use it all for payroll cost and only have to show the bank transaction of us paying ourselves?

[@gogurletc8170]

Sounds about right!

[@tinydancer0707]

Thanks so very much for your videos! Extremely helpful and informative! I know that the PPP Loans approved in 2020 had another requirement that owners couldn’t pay themselves more than 2.5 months of their 2019 net income. I can’t seem to find if this is a requirement for the loans approved in 2020, also. I can only find that the cap is $100k, like you mentioned. Thank you so much!!

[@ClaraCFO]

Yes, that 2.5 months limit is the same. If you use 2020 schedule C to apply for the loan, then you would use 2020 schedule C to calculate the owners comp too.

[@tyreewalker122]

Thank so much, Clara for the easy to understand instructions.

[@ClaraCFO]

So glad it's helpful! Make sure you watch the latest live update as the Schedule C calculation has changed!

[@qarulxira8697]

@@ClaraCFO y don’t answer for pple hu like that have questions pls u only respond to those hu like u

[@qarulxira8697]

@@ClaraCFO pls Can we use womply to file ppp r they legit Thanks

[@jbubs5370]

Thank you Ms. Hanna! You make it so clear, and simply understandable! The best explained with the forgiveness. Real cool. Thanks

[@ClaraCFO]

Great!

[@lmriv8778]

When would I have had to start my business by?

[@xRomarie]

What is the best way I can pay myself? Can I do an online transfer ? Also- I just got applied and got my first round last week, can I still get the second round or is it too soon from the first round that just deposited ?

[@lj4001]

I believe you must wait few wks or couple of months b4 applying for the Second round. Setup auto transfers whichever way you use to get paid.. yes best way is thru bank so everything is documented when you are ready to apply for forgiveness.

[@RealityHurts2024]

I thought you are supposed to use line 7 of Schedule C?

[@ClaraCFO]

Yes, you will see the notes have been updated. This video was posted before the rules changed.

[@RealityHurts2024]

@@ClaraCFO Clara you are the people's champ! Subscribed and liked ❤️

[@SoulRTouch]

Thank you so much. This was very helpful. I was up all night trying to figure out and this gives me relief. Blessings to you

[@ClaraCFO]

You are so welcome! Glad it helped!!

[@burtleague2881]

How do you properly close your cover period?

[@bmorston4994]

Great information, Can you use some of the funds to buy a commercial vehicle ?

[@ClaraCFO]

Answered your Q elsewhere, but short answer, no.

[@PopovskiDarko]

My PPP is on the way being deposit to my personal checking account,it’s not there yet, however my credit union says they can reject and return it because it’s not business account , they said I can’t open business account if I’m self employed, , I’m sole proprietor Uber Lyft drive 1099, should I be worried?

[@ClaraCFO]

Great question! I was getting this question a lot, so I made another video to answer it: kzbin.info/www/bejne/bIHYY2qCmNugnbc

[@cosandraodame7623]

I still am not clear on how you can use the money for yourself if you are so proprietor.

[@ClaraCFO]

Hi @Cosandra Odame, I have a video that should help: kzbin.info/www/bejne/eX7HgKCegpanqpo

[@TheEntrepreneuralFather]

What if you recieved the money into your personal account? Can you open a business account transfer it into there then transfer it back to a personal account?

[@mistywhitson7525]

Yes @DariusWigfallEL

[@ClaraCFO]

Great question! I was getting this question a lot, so I made another video to answer it: kzbin.info/www/bejne/bIHYY2qCmNugnbc

[@globalgypsy4007]

My husband and i are owners of an LLC and we file a Schedule C, sole proprietor. This is our first PPP loan application. For business type I selected Sole Proprietor. Under employees (including owners), do I indicate 1 or 2?

[@ClaraCFO]

You would put 1 unless you have a formal agreement with split ownership.

[@globalgypsy4007]

I provided a bank statement for Feb 2020 but the name on the account is my business name along with my husbands name only, not including me. However I am the PPP loan applicant. Do you foresee any problems with the loan process?

[@ren7ee]

What I don't understand is do we have to spend all the money within the 8 to 12-weeks? My loan was deposited directly from the SBA and not a bank. Also, when do we apply for loan forgiveness? Does the money have to be spent first? Thank you.

[@biglodallas]

What if it got send to a personal account could I open a business account and deposit then put in personal account

[@ClaraCFO]

Hi there.. have you seen this video? I go over PPP getting deposited into a personal account kzbin.info/www/bejne/bIHYY2qCmNugnbc

[@amineamimi7556]

I am uber and lyft driver but also I have other job full time,do you think I am eligible for PPP loan?

[@jeromeweaver809]

I have a question. If line 31 is 7,792 divided by 12 equal 649.33 x 2.5 equal 1,623.33. Are you saying that $1,623.33 is all can be applied for a PPP Loan as a sole proprietor? LLC

[@MuhammadKashif-191]

Please explain eligible expenses for the Uber/Lyft drivers in a separate video in common words rather than professional words. Thank you.

[@itsbeezy2405]

😆🤣

[@scriptedvisuals7963]

What if I’m I have an unregistered business and I’ve never had a schedule c?

[@MuhammadKashif-191]

Please explain non payroll cost expense for independent contractors. Car lease payment is eligible expense and apartment rent also???

[@nkreseknowledge2241]

How long do you have to wait before you apply for the 2nd draw? What has to be done or in place before you apply to the 2nd draw?

[@ClaraCFO]

Hi @nkreseknowledge.. You must wait a minimum of 8 weeks before applying for the 2nd draw as well as spend the full amount you received from PPP1. I go into more detail in this video: kzbin.info/www/bejne/j2TRmKqrgtSArtU

[@mr6964]

Hi Hannah. I'm a sole proprietor. Recently, my PPP loan was deposited into my personal checking account since I do not have a business account. However, I have another personal checking account with a different bank. Can I transfer the funds to my second account to show that the funds were transferred as owner compensation? Your advice will be appreciated. Thank you!

[@barbaras8318]

this is great thank you. What happens if you are getting unemployment?

[@josephbui6938]

Great information. Thanks for making this video. Very helpful.

[@ClaraCFO]

Thanks for watching!

[@learnandlift2013]

Love this explanation and thank you so much for the breakdown! The only thing I still can't seem to find info on is the "bank statements" part of record keeping. If making a transfer from your business bank account to your personal account, how do you actually distinguish that it is a PPP owners compensation replacement transfer and not an income transfer from actual business sales? If you choose a certain day of the week and a specific amount, and make that same transfer over 10 weeks, would that be enough to distinguish it from other current business "income" transfers? If that makes sense...

[@atlantiswhite6431]

Good morning.. Besides your schedule C what other documents the bank/SBA needs?

[@ClaraCFO]

For application or forgiveness?

[@atlantiswhite6431]

Application..

[@unique4532]

@@ClaraCFO and forgiveness

[@juliethtenorio6627]

Thank you for all the info and value you provide. I have a question. What if you get paid as 1099 but you dont have any of the non payroll costs as approved by the SBA. I only have business supplies, uniforms, video recording supplies and small skin care equipment I buy. Do these quality as non payroll costs? Txs. For your help.

[@rianellis6746]

so what if you had negative income on line 31... my deductions outwighed my income due to using my new car for a deduction doing uber?

[@valerias3581]

Was this question ever answered that is my situation too, my 31 was negative too, I spent more than I profited

[@vivianmadisonmahoney9457]

@@valerias3581 I used estimate on 1st try using line 31 with as little as 3,400 income. PPP offered so little ($756) so I never completed the signing of paperwork to receive the funds. Now my question is this: I applied as if first draw in April 2021 using line 7 (of my now totally completed and submitted taxes). Will PPP consider this as 1st draw since I never received $$ the 1st time I applied? Or will this be considered Draw #2? I couldn't/ didn't apply for what I would consider draw #2 because notices were out that it was too late...money exhausted...and again, how was I to know what Draw PPP Lender considered this 2nd time I tried and actually got $$ in bank?

[@delirocks2909]

I was fulltime uber gig worker and taking unemployment. Can I apply ppp fogive or eidl grant. please guide me and help me i need it . thanks

[@epianguiano7880]

yes, you can unemployment doesnt matter

[@kimrojas2332]

We received the first round of PPP as a sole Prop but have since become an LLC with a different EIN. Our bank is saying even though we applied for the first round using our SS number they’re waiting for guidance from the SBA on how to proceed for round 2. Is that normal? They said it’s not as simple as just applying again for the 2nd round using our SS number again. We’re concerned the money will run out while they’re waiting for their answers. Any advice would be greatly appreciated. Thanks.

[@ebperformance8436]

Mine was over Calculate it....Can I refuse the second drawer on the PPP

[@uva98]

Thanks!!! Love your video. So you can pay yourself, but is it 8 or 10 weeks, my plan is to do it consecutively but I’m confused if it’s 8 or 10. And I have 24 weeks or less to do so, correct?

[@ClaraCFO]

You can pay yourself for a full 2.5 months - that is the max. If you choose a covered period of 8 weeks, then you have to cap your owner compensation to 8 weeks.

[@uva98]

@@ClaraCFO that’s why people are mentioning now 10 weeks, awesome!!!

[@georgio9910]

hello, what is the minimum amount of transfers I can make weekly (when paying myself) in order to make sure by loan is forgiven?

[@DJMARTIN73]

@13:18

[@helencousins2911]

Thank you so much for this video. It was so clear and concise what is required to get the PPP loan. I have a question, I received a PPP1 loan and I am applying for PPP2. Will the Lender/SBA subtract the amount I received from PPP1 to determine how much I will receive in PPP2? My heartfelt thank you for doing these videos!

[@ClaraCFO]

thanks for watching! and no, the lender will not do any of that, so just request your PPP2 loan with using the correct calculations. No need to back anything out!

[@jdresback]

@@ClaraCFO So, does that mean that a sole proprietor who makes $100,000 a year could potentially received 2 loans (PPP round 1 and PPP round 2) for $20,833 or a total of $41,666 and that they could potentially get the full amount forgiven if they are using it as a replacement compensation for 5+ months? What if they manage to also earn other income during that period of time?

[@ranmoo]

Do any of the recent changes relative to PPP effect relative to Schedule E; specifically rental real estate? Or would our best hope for that business for COVID relief be via potentially an EIDL grant??

[@ClaraCFO]

Hi changes related to Schedule E.

[@valerias3581]

Hi i was confused about the PPP loan for the self-employed business owners' compensation, my local tax pretold me he could not apply for my PPP loan for me, and he has been doing my taxes he said I would qualify even though my 2019 was profit loss, is that true? I am confused all these different stories .???????

[@jaffawise3190]

I liked it...coming back for sure! Thanks!

[@ClaraCFO]

Thanks for watching!

[@carolbrown7048]

There seems to be little discussion about what makes one qualified to apply. If you are a Sole Proprietor, say a Realtor, and you actually made significantly more money in 2020 than 2019 in all 4 quarters are you still eligible to apply for the loan ?

[@Roni62]

Thank you so much for the great information.

[@ClaraCFO]

Glad it was helpful!

[@sudhiniv]

Thanks for great information. I have a quick question, I just started as an Independent contractor starting December 2020. Am I eligible for receiving PPP loan?

[@ClaraCFO]

No, PPP loans are for businesses in place before Feb 15, 2020.

[@everettmcallister6097]

How much are you allowed to pay yourself and have it forgiven?

[@gomarilife]

I didn't get about the 24 weeks....could I get more explanation about it? Please

[@ClaraCFO]

This video should help! kzbin.info/www/bejne/eX7HgKCegpanqpo

[@jasminewillis5288]

Hello! Hope you read this 🥺 We just received our ppp … unfortunately we don’t have a business account just a regular. I would hold the money till we create a business account but the problem with that is the timing. We’re trying to spend the money in 10weeks to receive full forgiveness. It takes 3 weeks to receive a LLC so should we wait or create a savings naming it “ppp payout”? By giving it a name wouldn’t that keep down confusion?

[@lexdadog]

Hi Hanna! Clars got her loan in May 2020. She created a biz account and dumped the loan in it. She wrote a payroll check to herself month 1, another payroll check to herself month 2 but still had the last half a month in her biz account toll now. Can she still utilize that half month as payroll cost? or did she need to use it 100% within 8 - 24 week period. Your insight is appreciated as always!

[@ClaraCFO]

Yes, she can still take it as "payroll costs". Even if it wasn't distributed out of the account, you could still take the 100% as payroll cost given that the Schedule C line 31 is the proof of "payroll costs".

[@meganperkins7507]

QUESTION...Do I file for the forgiveness 2.5 months after the approval date or the deposit date? I was approved last week but still haven't received.

[@k.lynnecollier7763]

Question: since the stipulation says "..wages down 25% in any given quarter in 2020 versus 2019..." I wouldn't qualify because I started Schedule C qualifying work in October of 2019, right? I have no "wages from 2019" to compare 2020 wages to. Thanks.

[@JackTran99]

Hi Ms.Anna, Please give me a advise . Which Lender is the best for apply PPP in this time? Thanks.

[@ClaraCFO]

Hi Hieu, I don't have a "best" option for you. I have seen some people use Paypal with success this time around if they don't have a bank.

[@ismailmustafa848]

Hi, I am a sole proprietor truck driver, and my gross income is exponentially higher than my net income. Will these new applications use the gross 1099 number, or continue with the schedule C net income?

[@AlwaysReady17]

Following

[@ClaraCFO]

Definitely wait for guidance because you are a prime candidate who will benefit from these new rules! Should be finding out details in the next week. Have you gotten a PPP loan before? or is this the first one you are considering?

[@ismailmustafa848]

@@ClaraCFO I have gotten a PPP loan before from kabbage yes. Also, any other places that I can apply for a ppp loan? Kabbage says I am qualified up to $2,500 (second application) which is the same exact amount as the first one. I feel like I shouldn't have applied but I hope we have guidance soon. Thanks for such a fast reply

[@Martha77]

When can you apply for PPP2? Immediately after you use the PPP1 funds?

[@ClaraCFO]

Yes - you have to USE PPP1 before getting PPP2, but you don't have to have it forgiven. So it must be at least 8 weeks between the two.

[@vivianmadisonmahoney9457]

@@ClaraCFO I understood that it had to be forgiven first so therefore I wasn't able to apply for the second one because they shut it down before then period or am I wrong can I still apply?

[@tylerwade7314]

Okay so you saying the payroll cost could be the same as the amount that you got ?

[@scottkloess8091]

Good morning. Question on the owner compensation replacement. If the loan was based on $2000/month average net profit and during the open period of 26 weeks you actually earned $1000 /month, can you augment that with a $1000 for that month from the PPPL2 to bring your net earned back to the average used to file for the loan or can you draw the full $2000 for that month?

[@ClaraCFO]

So in this case you got $5000? $2000 X 2.5? You can get $5000 as owners comp, regardless of what you ACTUALLY earned during the period.

[@scottkloess8091]

@@ClaraCFO Is that documented ANYWHERE, because I have not seen it.

[@brianfernandez5025]

Hannah, Hello! I am a LYFT Driver. I received my PPP first draw. Although I was approved for draw #2 I did not approve it because I did not qualify under the terms for receiving it. I did not have a 25% reduction for ANY quarter in 2020 vs 2019. My question: I did not know they sent my 1st draw until today 5/7/21. The money was sent to my account on 4/14/21 ugh. They did not send me a notification that the money was sent. I opened a second PERSONAL account (NO business account). I have heard we can send the entire amount in one lump sum. I am not sure what to do at this point because I am now 3 weeks behind the 8 ball. Should I send to my other personal account in one lump sum or send for 8 weeks?? Do GIG workers need to worry about the 60% rule? I am hearing so many different ways to do this and I am confused BIG TIME??

[@jishanyoutubepage8313]

I am lyft operator. Can I get Ppp and unemployment at the same time. When I file forgiveness what expenses I can show. Can I show my car payment.

[@sandracc3741]

Hello so I just got the ppp loan to my bank and I’m now getting unemployment in maryland I don’t know what to do now I was self employed but I had Covid so I couldn’t work but I wanted to know if I can take out the money and put it to another bank account and pay my self weekly for the 8 weeks until the balance is $0? To do the forgiveness?

[@PrinceShakurYoutube]

Has anyone who is a sole proprietier or self employed gotten the PPP loan and spent it out of their personal account? I'm looking into opening a business account and wondering if it's totally necessary.

[@originalcreation36]

Yes you can you use a personal but a business account is better so you can keep up with your business expenses only. Please get a business account.

[@KnightxpressLLC]

What if you don't have a schedule C but a 1099 or a schedule K would that work?

[@scottkloess8091]

Do you know where it is documented regarding amount of owner comp allowed and actual earning during that same period? I assumed you could only make up the difference from the average used for the loan. Love to know where in the SBA guidelines that it qualifies what can be claimed as owner comp. I have not seen it documented very well, especially with my question of other net income during that same period.

[@ClaraCFO]

What tax entity type? Schedule C? What do you mean "regarding amount of owner comp allowed and actual earning during that same period? "

[@mata10m]

Can you please verify one important thing for me as I am not sure what to do as I submitted my personal account inormation not having business account at the momemnt and will be funded most likely on my personal account very soon. After I get funded then should I make transfers from personal to business and then business back to Personal account once I be funded? I just need to make sure how to make this loan forgivable and avoid paying back loan. Thank you very much.

[@ClaraCFO]

I have a video that goes over PPP deposited in a personal account: kzbin.info/www/bejne/bIHYY2qCmNugnbc

[@eduardoelizalde8660]

As a Sole Proprietor, am I able to pay myself 100% on payroll only or must I have 40% on Non-Payroll expenses to have it forgiven? Also, what must be done if you received more than what you should have gotten? Can someone help...

[@scottkloess8091]

For a sole proprietor Schedule C filing LLC. Do you know where it is documented regarding amount of owner comp allowed and actual earning during that same period? I assumed you could only make up the difference from the average used for the loan. Love to know where in the SBA guidelines that it qualifies what can be claimed as owner comp. I have not seen it documented very well, especially with my question of other net income during that same period. My question is really on how to allocate the right amount of the PPP loan as Owner Compensation given that I also have Net earnings for the LLC during the same period. My example was loan is based on $2000 /mt average earning and say I make $1000 /mt during the active 26 week time. Can I take the difference of $1000 /mt as Owner Comp or can I take the full $2000/mt? Where is this outlined in any of the SBA guidelines?

[@ClaraCFO]

You don't have to limit yourself to only the difference. There's no requirement to take into consideration your actual income during the covered period!

[@scottkloess8091]

@@ClaraCFO Thank you very much. The videos are very helpful. Love to understand if that is documented as such anywhere because I have looked. I also understand that they don't document that you need to show actual earnings during the covered period, just the documented Owners Compensation Replacement costs. Sorry for the "repeat" of similar questions, but I would love to have the guideline or ruling from SBA for reference that documents your comments or answer. Thanks again.

[@denisegooden7275]

what if you are a sole proprietors and have a employee will i just pay them to

[@malachisalus6230]

Hi Hannah, so if I’m understanding correctly, their only needs to be proof I payed myself once as one big lump sum correct? Once the funds are in my personal account I can use for whatever necessary since I am paying myself?

[@ClaraCFO]

Yes!

[@mikec5579]

So do I have to save receipts or anything

[@teshawnastewart4911]

Is there a way where I can pay you to file for me because I am still confused idk maybe me Taxes is just a foreign language to me.

[@bodyscrubsbyrebeca2700]

Thank you soooo much for this information!!!!

[@ClaraCFO]

You bet!

[@alancurtis-berger1265]

Ok. I went thru a service (Blueacorn) to apply and was approved. I received 9300. I would like to use it all for owners compensation. However, for personal reasons, I have to limit the amount of money for a weekly draw going into my checking account. It works out perfectly for me to use the amount based on taking 60%. Can I put the balance into a personal savings account, but still consider it owners compensation?

[@dianevessels2632]

My understanding is that of March 1, 2021 the non payroll expenses have been expanded. Do you know what the new non payroll expenses are now? Any help would be appreciated.

[@hichambruce955]

Hello, as a sole proprietor, can I get Eidl and the PPP at the same time?. Thank you

[@michaelcohagan1775]

Nice job, Hannah! I appreciate your help very much. Stay safe.

[@ClaraCFO]

Thanks for watching!

[@edkhabibov9449]

I have two 1040c forms in my tax return, and womply counted only income from one of them. Do I have to apply for another PPP to get money on second 1040c? Thank you!

[@wicked2407]

I'm a DJ and also do handyman services but I didn't file 1040c in 2020 because no one was hiring me out due to covid. Can I still apply and how? Thank you.

[@ClaraCFO]

Yes, You can use your 2019 schedule C!

[@livscreativeescapes6523]

Just a quick question on opening a business account if we don't already have one. I have had an ein for 2 yrs but I've always done my taxes as a dba under my social. Is it going to get sticky if I open a business account with the ein I've never used? Or should I just open a new personal account and use it as a business account. Also I have already gotten my 2nd draw.

[@chillbruh8870]

My bank allowed me to open a biz account under my social. I would just make it clear to them that you are a sole proprietor.

[@barfly246]

whats it mean to keep a covered period open/closed? as a sole owner paying myself

[@ClaraCFO]

When I say "closing the covered period" this just means the end date of your covered period. You don't declare the end of the covered period to anyone until you fill out your forgiveness application. The covered period can be a minimum of 8 weeks after receiving the funds and maximum of 24 weeks after receiving the funds.

[@lj4001]

Have a big question that I haven’t heard anyone mention is is this “forgiveness” full forgiven or just the 60% n is the payroll amount Taxed in 2021/2022?!

[@lj4001]

So after much research, most are saying so long as the 60 % is met and documented, all of the “100 %of Loan” is forgiven and thus NOT taxed for 2021/2022 of next year’s income tax. *so new question will be, if Not forgiven, will it _then_ be taxable income? 🧐

[@ladyreign21]

I am a C-Corp with no employees and got approved my 1st draw with 1099 because I didn’t file for 2019 and haven’t file yet. Now I’m applying for the 2nd draw but still and was instructed to use the same information like before. But the bank is telling me to use form 941 as proof of payroll and for part 2use a proof of payroll or similar documentation to prove business was in operation. Payroll was more in 2019 v 2020 but there is no schedule C. Should I file form 941 for 2019 or 2020? It’s frustrating😷

[@ClaraCFO]

I'm a bit confused here. A C corp is a different thing from a schedule C filer. Sounds like you are filling a schedule C (and receive 1099s from your clients). You may have some confusion with the bank because of this mis-match of tax entity types. If you were a C corp, you could have a 941.

[@ladyreign21]

@@ClaraCFO I am a C-Corp I have not filed yet. I have no employees, its just me. The bank requested a draft of 1099 of 2019 for the 1st draw and I was approved.. Because I’m trying to apply for and get approved for the 2nd draw, do I need to file all garters for 2019 of just form 941 for proof of payroll?

[@mikealexander6772]

Hi thanks for your information . My question is , I can get the ppp loan and at the same time I can get PUA unemployment benefits? Or what effect this loan have on my PUA benefits?? Thanks

[@bemyfriends2300]

I received first draw of ppp loan just last week.do I have still chance to get 2nd draw ? Please reply.

[@lolLeslylol]

What about lyft driver i was using the same account

[@Jazzypantz1]

Hi Clara--Question--When applying for PPP round 2, when you are figuring out if you qualify having a quarter thats 25% less receipts in 2020 compared to 2019, do you have to add any unemployment you received in that quarter as well? I saw no place to add that in my application, but want to be sure. Thank you for your time.

[@ClaraCFO]

No, just include income from your business. Unemployment is personal income and not business income.

[@Jazzypantz1]

Thanks so much for replying!

[@jpol999]

So you’re saying we can pay ourselves the full amount as owner’s compensation and ask forgiveness for the whole amount?

[@ClaraCFO]

Yep!

[@bunnyamanteadvincula5230]

I want to see your videos About ppp Loan

[@Nick-bv2my]

My form states revised as of March 18, 2021. After dividing by 12 it says to multiply by 2.5 + EIDL( not the advance the loan) is this presentation all work the same now except that part?

[@trangtran-ld2tn]

Very clear...thank much for sharing