What K-12 tax benefits does Minnesota offer?
Two Minnesota tax benefits help families pay their child’s education expenses: the K-12 Education Credit and the K-12 Education Subtraction.
Both benefits reduce your clients’ state tax and could provide a larger refund when filing Minnesota income tax returns. Last year, more than 36,000 families received the K-12 Education Credit and saved an average of $251. Nearly 192,000 families received the K-12 Education Subtraction.

Do my clients qualify for these tax benefits?
To qualify for either the credit or subtraction, both of these must be true:

• Your client has a qualifying child attending kindergarten through 12th grade at a public, private, or home school
• Your client purchased education-related expenses in 2020 to assist with the child’s education

Separate requirements apply for the credit and subtraction.

• K-12 Education Credit: Your client’s household income (taxable and nontaxable income) must be below the levels shown in the table. If they qualify for the credit but do not need to file a Minnesota return, they must file a return to claim a refund for the credit. If your client is married, they must file a joint return to qualify.

Number of qualifying children in K-12         Household income must be less than
1 or 2                                                                      $37,500
3                                                                             $39,500
4 or more                                                             Add $2,000 for each additional child

• K-12 Education Subtraction: There are no income limits for the education subtraction.

​What education-related expenses qualify? 
Most expenses for educational instruction or materials may qualify, including:

• Paper and notebooks
• Pens and pencils
• Nonreligious textbooks
• Rental or purchases of educational equipment, including musical instruments
• Computer hardware (hotspots, modems, and routers) and educational software (up to $200 for the subtraction and $200 for the credit)

After-school tutoring and educational summer camps taught by a qualified instructor

We have gotten confirmation that the extra $600 that many are getting in unemployment, is NOT having tax withheld nor can they fix this glitch.
I am sure you have already seen the full amount being deposited but just keep in mind that if you want MN to withhold tax, they cannot. Our advice is to set aside the amount that would normally be done on your other UI check (if possible). This is generally 10% for Federal ($60) and 5% for State ($30).
Please keep in mind that Unemployment Benefits are taxable so if you do not have any money withheld, you will be paying in those taxes at tax time...ie: if you normally get a refund, it will be reduced or potentially turned into owing money.

 2020 Fast Grants - Applications Due April 23!
The Duluth 1200 Fund has established a grant program called 2020 Fast Grants to support small businesses.

This program is to provide immediate financial assistance to businesses who have been negatively affected by the COVID-19 pandemic. The program is also intended to provide gap funding for businesses who have sought the Small Business Administration’s or Minnesota Department of Employment and Economic Development’s loan programs and have had a difficult time obtaining funding. The 2020 Fast Grants program is seeking to provide local support to preserve 1,200 jobs within the City of Duluth during the Covid-19 pandemic. The PDF application can be found online at www.1200fund.com and includes a list of supporting documentation to be submitted with the application.

Applications and questions should be submitted electronically to: 1200fund@duluthmn.gov. If you require the application or other materials in alternate formats, please email or call 218-730-5310.

Applications will be accepted NOW through 11:59 PM on Thursday, April 23, 2020. Depending on funding availability, additional grant rounds may occur.
Businesses are eligible if they meet the following criteria:

• Employ between two (2) and fifty (50) employees
• Gross revenues of $5,000,000 or less annually
• In operation within Duluth city limits prior to January 1, 2020
• Demonstrate that revenue has been impacted by Covid-19, and forced to close or significantly scale back operations under current executive orders
• Must be able to identify funding needs to support continued operations or reopening

Grant Amount: $10,000 per organization; current 1200 Fund borrowers are eligible for up to $20,000. Funding for the 2020 Fast Grants program is limited, and may be quickly exhausted if demand exceeds available funding. The 1200 Fund cannot guarantee that all eligible applicants will receive funding.
Other requirements: Grantees who have received the grant must provide a report to the 1200 Fund Board as to how the funding was spent.

U.S. Chamber of Commerce Foundation Offering $5,000 Grants to Small BusinessesThe U.S. Chamber of Commerce Foundation, through its “Save Small Business Fund,” is offering the opportunity for small businesses to receive a $5,000 grant to offset economic hardship experienced as a result of the Covid-19 pandemic.  

To qualify businesses must:
1.    Employ between 3 – 20 people
2.    Be located in an economically-vulnerable community
3.    Harmed financially by the Covid-19 pandemic
The application is now live. All you will need to apply is your business’s W-9 form. The application process takes 10 minutes. 
To see if a business qualifies, click here.

We are here to help. CONTACT US and we'll have someone contact you as soon as possible. 

COVID-19 Resources & UpdatesLatest updated COVID-19 Resources Financial Assistance FAQsNational Resources

• CARES Act for Small Business
• SBA Economic Injury Disaster Loans and Loan Advance
• Paycheck Protection Program (PPP) Loans
• Federal Tax Updates
• CDC COVID-19 Overview
• CDC Interim Guidance for Businesses and Employers

Minnesota Resources

• Navigating MN Unemployment - Video
• DEED Small Business Emergency Loans
• Guide for Minnesota Small Businesses Who Need Help (DEED)
• Emergency Child Care Grants - Applications Due April 15
• Special Enrollment Period for Uninsured Minnesotans
• Unemployment Benefits
• Minnesota Tax Updates

Wisconsin Resources

• WI SBDC Resource Page for Businesses

Local Resources (Community Specific)

• IEDC Small Business Relief Loan (Itasca County)​

   

WARNING

• Please tell your clients to access “Filers: Get Your Payment” only one time per day! If they access it more than one time per day, they will get locked out with possibly no way to get it unlocked!
• “Get My Payment is updated once daily, usually overnight. The IRS urges taxpayers to only use Get My Payment once a day given the large number of people receiving Economic Impact Payments.”  

Both “web-portals” are now available
 
Both tools (or web-portals) on IRS.gov are now live.  Economic Impact Payments
Tool 1:   “Filers: Get Your Payment” -- This is the tool where some people can update their Direct Deposit information.
Tool 2:   “Non-Filers: Enter Your Payment Info Here”  -- Non-filers means those who are not required to file a tax return.

Get My Payment” is working
 
The Get My Payment site is operating smoothly and effectively. As of mid-day today, more than 6.2 million taxpayers have successfully received their payment status and almost 1.1 million taxpayers have successfully provided banking information, ensuring a direct deposit will be quickly sent.
 
IRS is actively monitoring site volume; if site volume gets too high, users are sent to an online “waiting room” for a brief wait until space becomes available, much like private sector online sites. Media reports saying the tool “crashed” are inaccurate.
 
In situations where payment status is not available, the app will respond with “Status Not Available”.  The IRS reminds users you may receive this message for one of the following reasons:

• If you are not eligible for a payment (see IRS.gov on who is eligible and who is not eligible)
• If you are required to file a tax return and have not filed in tax year 2018 or 2019.
• If you recently filed your return or provided information through Non-Filers: Enter Your Payment Info on IRS.gov. Your payment status will be updated when processing is completed.
• If you are a SSA or RRB Form 1099 recipient, SSI or VA benefit recipient – the IRS is working with your agency to issue your payment; your information is not available in this app yet.

 
You can check the app again to see whether there has been an update to your information.  The IRS reminds taxpayers that Get My Payment data is updated once per day, so there’s no need to check back more frequently.
 

IRS.gov feature helps people who normally don’t file get payments; second tool next week provides taxpayers with payment delivery date and provide direct deposit information
WASHINGTON – To help millions of people, the Treasury Department and the Internal Revenue Service today launched a new web tool allowing quick registration for Economic Impact Payments for those who don’t normally file a tax return.
The non-filer tool, developed in partnership between the IRS and the Free File Alliance, provides a free and easy option designed for people who don’t have a return filing obligation, including those with too little income to file. The feature is available only on IRS.gov, and users should look for Non-filers: Enter Payment Info Here to take them directly to the tool.
“People who don’t have a return filing obligation can use this tool to give us basic information so they can receive their Economic Impact Payments as soon as possible,” said IRS Commissioner Chuck Rettig. “The IRS and Free File Alliance have been working around the clock to deliver this new tool to help people.”
The IRS reminds taxpayers that Economic Impact Payments will be distributed automatically to most people starting next week. Eligible taxpayers who filed tax returns for 2019 or 2018 will receive the payments automatically. Automatic payments will also go in the near future to those receiving Social Security retirement or disability benefits and Railroad Retirement benefits.
How do I use the Non-Filers: Enter Payment Info tool?
For those who don’t normally file a tax return, the process is simple and only takes a few minutes to complete. First, visit IRS.gov, and look for “Non-Filers: Enter Payment Info Here.” Then provide basic information including Social Security number, name, address, and dependents. The IRS will use this information to confirm eligibility and calculate and send an Economic Impact Payment. Using the tool to get your payment will not result in any taxes being owed. Entering bank or financial account information will allow the IRS to deposit your payment directly in your account.  Otherwise, your payment will be mailed to you.
“Non-Filers: Enter Payment Info” is secure, and the information entered will be safe. The tool is based on Free File Fillable Forms, part of the Free File Alliance’s offerings of free products on IRS.gov.
Who should use the Non-Filers tool?
This new tool is designed for people who did not file a tax return for 2018 or 2019 and who don’t receive Social Security retirement or disability benefits or Railroad Retirement benefits. Others who should consider the Non-Filers tool as an option, include:
Lower income: Among those who could use Non-Filers: Enter Payment Info tool are those who haven’t filed a 2018 or 2019 return because they are under the normal income limits for filing a tax return. This may include single filers who made under $12,200 and married couples making less than $24,400 in 2019.
Veterans beneficiaries and Supplemental Security Income (SSI) recipients: The IRS continues to explore ways to see if Economic Impact Payments can be made automatically to SSI recipients and those who receive veterans disability compensation, pension or survivor benefits from the Department of Veterans Affairs and who did not file a tax return for the 2018 or 2019 tax years. People in these groups can either use Non-Filers: Enter Payment Info option now or wait as the IRS continues to review automatic payment options to simplify delivery for these groups. 
Social Security, SSDI and Railroad Retirement beneficiaries with qualifying dependents: These groups will automatically receive $1,200 Economic Impact Payments. People in this group who have qualifying children under age 17 may use Non-Filers: Enter Payment Info to claim the $500 payment per child.
Students and others: If someone else claimed you on their tax return, you will not be eligible for the Economic Impact Payment or using the Non-Filer tool.
 
Coming next week: Automatic payments begin
Eligible taxpayers who filed tax returns for either 2019 or 2018 and chose direct deposit of their refund will automatically receive an Economic Impact Payment of up to $1,200 for individuals or $2,400 for married couples and $500 for each qualifying child. Individuals who receive Social Security retirement or disability benefits, SSDI or who receive Railroad Retirement benefits but did not file a return for 2019 or 2018 will automatically receive a payment in the near future.
Coming next week: Get My Payment shows Economic Impact Payment date, helps with direct deposit
To help everyone check on the status of their payments, the IRS is building a second new tool expected to be available for use by April 17. Get My Payment will provide people with the status of their payment, including the date their payment is scheduled to be deposited into their bank account or mailed to them.
An additional feature on Get My Payment will allow eligible people a chance to provide their bank account information so they can receive their payment more quickly rather than waiting for a paper check. This feature will be unavailable if the Economic Impact Payment has already been scheduled for delivery.

Wanted to give all ya'll small business owners, that have applied for the EIDL loans, a bit of information.

Deni actually called today, in query to her own loan, to check on the progress. Let's just say when she called she was # 1,598 in que and it took almost an hour to get to her. If you don't have to call, it is for the best.

Anyway, the only information that can be given at this time (when you call) is that your loan has been received. The folks in the call center cannot see any progress/processing information. Once the application has been processed, an EMAIL (from the .gov site) will be sent out to verify if the loan/grant is still wanted. You must then put in your answer & from there it will continue on the process. She was able to verify that the loan does look at your credit score for part of the approval process. The gal was not able to verify how long this next process is or what type of question(s) are asked. She also was not able to say what other type of info would be given as far as if you are denied and the up to $10K advance. She was able to verify that if anyone does call you in regards to the loan (not likely but entirely possible) that the only way you should give them any info is if they repeat your loan application # to you. This is the confirmation # that you printed/saved once the application was complete.
​
I know this isn't a lot of information but it is a little something. The take away is, if you call, they won't be able to give you any information so it is best not to waste the hours on hold.

IRS Newswire
March 30, 2020

Issue Number:    IR-2020-61
WASHINGTON – The Treasury Department and the Internal Revenue Service today announced that distribution of economic impact payments will begin in the next three weeks and will be distributed automatically, with no action required for most people. However, some seniors and others who typically do not file returns will need to submit a simple tax return to receive the stimulus payment.

Who is eligible for the economic impact payment?
Tax filers with adjusted gross income up to $75,000 for individuals and up to $150,000 for married couples filing joint returns will receive the full payment. For filers with income above those amounts, the payment amount is reduced by $5 for each $100 above the $75,000/$150,000 thresholds. Single filers with income exceeding $99,000 and $198,000 for joint filers with no children are not eligible.
Eligible taxpayers who filed tax returns for either 2019 or 2018 will automatically receive an economic impact payment of up to $1,200 for individuals or $2,400 for married couples. Parents also receive $500 for each qualifying child.

How will the IRS know where to send my payment?
The vast majority of people do not need to take any action. The IRS will calculate and automatically send the economic impact payment to those eligible.
For people who have already filed their 2019 tax returns, the IRS will use this information to calculate the payment amount. For those who have not yet filed their return for 2019, the IRS will use information from their 2018 tax filing to calculate the payment. The economic impact payment will be deposited directly into the same banking account reflected on the return filed.

The IRS does not have my direct deposit information. What can I do?
In the coming weeks, Treasury plans to develop a web-based portal for individuals to provide their banking information to the IRS online, so that individuals can receive payments immediately as opposed to checks in the mail.

I am not typically required to file a tax return. Can I still receive my payment?
Yes. People who typically do not file a tax return will need to file a simple tax return to receive an economic impact payment. Low-income taxpayers, senior citizens, Social Security recipients, some veterans and individuals with disabilities who are otherwise not required to file a tax return will not owe tax.

How can I file the tax return needed to receive my economic impact payment?
IRS.gov/coronavirus will soon provide information instructing people in these groups on how to file a 2019 tax return with simple, but necessary, information including their filing status, number of dependents and direct deposit bank account information.

I have not filed my tax return for 2018 or 2019. Can I still receive an economic impact payment?
Yes. The IRS urges anyone with a tax filing obligation who has not yet filed a tax return for 2018 or 2019 to file as soon as they can to receive an economic impact payment. Taxpayers should include direct deposit banking information on the return.

I need to file a tax return. How long are the economic impact payments available?
For those concerned about visiting a tax professional or local community organization in person to get help with a tax return, these economic impact payments will be available throughout the rest of 2020.
​
Where can I get more information?
The IRS will post all key information on IRS.gov/coronavirus as soon as it becomes available.
The IRS has a reduced staff in many of its offices but remains committed to helping eligible individuals receive their payments expeditiously. Check for updated information on IRS.gov/coronavirus rather than calling IRS assistors who are helping process 2019 returns.

On March 27, 2020, President Trump signed into law the CARES Act, which provided additional assistance for small business owners and non-profits, including the opportunity to get up to a $10,000 Advance on an Economic Injury Disaster Loan (EIDL). This Advance may be available even if your EIDL application was declined or is still pending, and will be forgiven.
​
If you wish to apply for the Advance on your EIDL, please visit www.SBA.gov/Disaster as soon as possible to fill out a new, streamlined application. In order to qualify for the Advance, you need to submit this new application even if you previously submitted an EIDL application. Applying for the Advance will not impact the status or slow your existing application.

​

1. Be alert for phone scams. 
   The Internal Revenue Service (IRS), Treasury Department, or any other government agency will not contact you by phone to collect information for stimulus payment processing. Period.
2. Be alert for phishing scams. 
   Government agencies will not email or text you to collect information for stimulus payment processing. Watch for suspicious emails or texts with links or attachments requesting information for processing stimulus deposits or checks. If you receive one, do not click the link or open the attachment. It’s a scam. Delete it.
3. Be alert for state-related scams.
   State agencies will also not call, email or text you to collect information or a fee to process a stimulus payment. To date, no state has introduced their own version of a stimulus payment.

As of now, we are only aware of one communication a taxpayer will receive from the IRS. No later than 15 days after distributing a stimulus payment, the IRS is required to mail a notice to the taxpayer indicating the payment amount, whether the payment was mailed or deposited, and a phone number to call if the taxpayer did not receive the payment. 

Victims or targets of stimulus payment scams should report it immediately to the Federal Trade Commission, www.ftc.gov/complaint.

We will provide more information about the IRS’s plans to process stimulus payments as it becomes available. 

​COVID-19 - Tax Return Filing & Payment Relief
 
Does the deadline postponement apply to return filing and payments?
Yes. Both the filing and payment deadlines have been automatically postponed from April 15, 2020 to July 15, 2020 for individuals, trusts, estates, corporations, or any type of unincorporated business entity. Interest and penalties will begin to accrue after July 15.
Do taxpayers need to file any additional forms to qualify for relief?
No, taxpayers do not need to submit any additional forms; the new July 15, 2020 deadline applies to all taxpayers with a Federal income tax return or payment formerly due on April 15, 2020. Individual taxpayers, who need additional time to file beyond July 15, can request a filing extension until October 15 by filing Form 4868 before the July 15 due date. Corporate filers use Form 7004 to request additional time.
Has the filing deadline for all state returns been postponed to July 15?
State filing and payment deadlines vary by state. Check with each state to get an accurate due date for filing and payment or visit our State Response to Covid-19 page.
I have already filed returns with a scheduled payment date of April 15, 2020. Will this payment be automatically rescheduled for July 15, 2020?
No, the payment will not automatically reschedule. The payment will be made on the date selected unless the payment is rescheduled. Follow the instructions below to reschedule or cancel a payment.

• IRS Direct Pay – Use the confirmation number from scheduled payment to access the Look Up and Payment feature.
• EFTPS -  Access the EFTPS website, then click on Payments and login. Click on Cancel a Tax Payment from the left menu and follow the instructions. 
• Schedule Electronic Funds Withdrawal – Electronic withdrawal payments scheduled when tax returns are filed can be revoked by contacting the U.S. Treasury Financial Agent at 888-353-4537.
• Credit/Debit Cards – Cancel scheduled payments by contacting the card processor.

Are first quarter 2020 estimated tax payments still due on April 15, 2020?
No, the April 15 estimated tax payment due date is also postponed until July 15, 2020.
Have the second quarter 2020 estimated tax payments, due on June 15, 2020, also been postponed?
No, the postponement only applies to the April 15, 2020 payment. The June 15, 2020 estimated payment due date remains the same.
Does this relief provide more time to contribute money to an IRA, HSA, or Archer MSA for 2019? 

Yes. Contributions may be made for a particular year, at any time during the year or by the due date for filing a return for that year. Because the due date for filing Federal income tax returns has been postponed to July 15, the deadline for making contributions to IRA, HSA, or Archer MSA for 2019 is also extended to July 15, 2020. 
I have tried calling the IRS for help, but I have been unable to reach anyone by telephone. What should I do?
Limited live telephone customer service assistance is currently available due to precautions taken to protect IRS employees from the coronavirus. High demand has created very lengthy wait times. The IRS encourages people to use IRS.gov for information.
How can I keep up with the IRS response to the Coronavirus and COVID-19 legislation?
For the most up-to-date information, visit the IRS Coronavirus page https://www.irs.gov/coronavirus. As information is released regarding stimulus payments and legislation, it will be posted to this page. More FAQs can be found at https://www.irs.gov/newsroom/filing-and-payment-deadlines-questions-and-answers.