Unemployment in Ohio, requested tax be taken out, also got Pandemic SBA loan

[ActiveTravelPro]

Hello.  Two questions:  I received unemployment from Ohio...I stopped it last month as my travel business has had periodic commissions coming in now.  I asked the tax to be taken out already, so when I do my quarterly taxes, I don't need to count that as taxable income, correct?

Re: SBA Loan.  I do not have to begin paying that back until next July 2022.  How do I categorize that on the tax return?  It went into my account in 2020.  Do I just ignore that this year since payments are deferred?  I have paid in advance a little bit this year.  (About $600, I think...would have to check).

[ReneeTAXEA1]

 

Unemployment in Ohio, requested tax be taken out, also got Pandemic SBA loan

Thank you for contacting TurboTax Live!  We see that you have a specific question about Unemployment Compensation that you received during the 2020 Tax Year from the State of Ohio, and that you requested that Federal tax withholdings be taken out of the weekly payment amounts of UC, and also that you had received a SBA Loan, which we assume is a PPP Loan!  We thank you for your question!!!  And we are here to help!

 For purposes of calculating quarterly taxes - even though you will not have to pay taxes on the 1st $10,2000 of Unemployment Compensation as received from Ohio during 2020, you will still have to determine your Adjusted Gross Income (AGI) for all of the income that you received during the 2020 tax year.  Since we do not know if you had a Retirement Distribution, Interest, Dividends, Capital Gains, Rental Income, or anything else (maybe you even hit the lottery during 2020) - it is difficult to assess your estimated tax obligation just based on UC and the PPP/SBA Loan!   We do have an Estimated Tax Calculator on TurboTax Live! Community Resources - so we suggest that you run a few hypothetical calculations - just to be on the safe side!

Re: SBA Loan.  You stated that you do not have to begin paying that back until next July 2022. - and asked  How do you categorize that on the tax return?  (especially as it went into your bank account in 2020). 

The advice on this subject matter will be forthcoming from the IRS, and is based on the current bills that are in front of Congress!!  So - in answer to your question - please do just put this in your items to consider for next year's tax return, and check back with us, so that we can give you updated resources when the tax laws are more clear!!

Thank you for contacting TurboTax Live!

[ReneeTAXEA1]

Thank you for contacting TurboTax Live!  We see that you have a specific question about Unemployment Compensation that you received during the 2020 Tax Year from the State of Ohio, and that you requested that Federal tax withholdings be taken out of the weekly payment amounts of UC, and also that you had received a SBA Loan, which we assume is a PPP Loan!  We thank you for your question!!!  And we are here to help!

 For purposes of calculating quarterly taxes - even though you will not have to pay taxes on the 1st $10,2000 of Unemployment Compensation as received from Ohio during 2020, you will still have to determine your Adjusted Gross Income (AGI) for all of the income that you received during the 2020 tax year.  Since we do not know if you had a Retirement Distribution, Interest, Dividends, Capital Gains, Rental Income, or anything else (maybe you even hit the lottery during 2020) - it is difficult to assess your estimated tax obligation just based on UC and the PPP/SBA Loan!   We do have an Estimated Tax Calculator on TurboTax Live! Community Resources - so we suggest that you run a few hypothetical calculations - just to be on the safe side!

Re: SBA Loan.  You stated that you do not have to begin paying that back until next July 2022. - and asked  How do you categorize that on the tax return?  (especially as it went into your bank account in 2020). 

The advice on this subject matter will be forthcoming from the IRS, and is based on the current bills that are in front of Congress!!  So - in answer to your question - please do just put this in your items to consider for next year's tax return, and check back with us, so that we can give you updated resources when the tax laws are more clear!!

Thank you for contacting TurboTax Live!