After last week's very heavy (and important) post about the violence and racism against Asian Americans, I want to lighten some things up around here! So, let me first share SNL's "Asian Cast Member" Bowen Yang's Weekend Update appearance...
Alright, it started light...but it didn't end that way. That's because it's not an easy subject to inject humor into, right?
"She said we must not summit to racism and we must fight to the death if necessary."
This 75 year old grandmother really deserves our respect and dignity.
Now onto the funny...SNL did a comedy video on a strange financial phenomenon called NFTs.
Got it?! Good. It's so nerdy and funny to me.
By the way, so many of you responded to last week's blog post in the comments, through email and social media. I want to THANK YOU! It really warmed my heart that what I wrote helped you think about something differently or become a stronger ally, and I just want to thank you for your support, in general. I'm also going to answer a few questions I've gotten this week that I think is worth sharing the answers. If you have questions, please comment below or send my team an email at email@example.com.
I am not sure if I am eligible for the PPP. Should I apply for it? I am scared of not having it forgiven.
First of all, loan forgiveness means that you won't need to pay back the money you borrowed from the Paycheck Protection Program, if you use the money for certain things. This applies to both first and second draw loans. So, how do you qualify for forgiveness? Here's the gist:
- You keep roughly the same amount of employees and compensation.
- You spend the money on approved costs such as payroll, rent, utilities, etc; and
- You spend at least 60% of the loan amount on payroll.
Forgiveness applications are processed through your lender, so they will be your primary point of contact. You'll send all documentation, if required, to them, including bank statements, tax forms, and the like. But, here’s the good news: For all loans under $150k, the process is extremely simple. All you need to do is fill out a one page 3508S application with seven pieces of basic information. That’s it! No documentation or proof of calculations needed (although it's recommended you keep records, in case you’re audited in the future). You simply have to check a box that says that you provided accurate information and complied with all PPP rules. If you have a loan of $150K or more, you'll need to apply with different forms and proof.
I received unemployment compensation last year, and the law was recently changed to exempt up to $10,200 of it from federal taxes. What do I do?
If you already filed your 2020 tax return, the IRS strongly urges you not to file an amended return. It hasn’t said what steps to take but plans to do so soon. BUT if you haven’t filed your 2020 return yet, the IRS released a guide that includes a worksheet and instructions to claim the exemption. By the way, if your income is a little high to qualify for this exemption, I found this article quite useful: How to Cut Your Income to Grab the $10,200 Unemployment Tax Break.
I already filed my 2020 return and scheduled an automatic withdrawal of my tax payment for April 15. Will the IRS automatically delay this payment until May 17 (the new filing date)?
No, but you can take action to change the payment date. The IRS says you can cancel the payment by contacting the U.S. Treasury Financial Agent at 1-888-353-4537. Payment cancellation requests need to be made by 11:59 p.m. ET two business days before the scheduled payment date. Then, you can reschedule the automatic payment or mail a check to the IRS.
If you used IRS Direct Pay or the Electronic Federal Tax Payment System (EFTPS), both have directions for canceling payments, which needs to be done two days before the payment date. For IRS Direct Pay, use the Look Up a Payment Feature. For EFTPS, log in and click on Cancel a Tax Payment. If you scheduled an automatic payment by credit or debit card, you can also contact your card company to change the date.
Does the May 17 deadline apply to contributions for 2020 traditional IRAs, Roth IRAs and HSAs?
This is still unclear, but it may not. The IRS will release guidance on this soon but if you have the money, go ahead and get it in by April 15th.
If I have an extra $400, should I buy a bed I've been wanting or invest it?
First, I asked, what are your Core Values? Then, I asked what aligns more with those core values? She said investing would align more with her core values. We go into more detail on where to invest, etc. but the key takeaway for you -- always, spend money towards what aligns with your core values. Don't know what your core values are? Let's talk. Go to the home page and sign up for a free session.