In the midst of the coronavirus (COVID-19) pandemic, Americans are focusing on their health and financial well-being. To help with the impact facing many people, the government has provided a range of relief. Some new announcements made by the IRS are as follows:
Additional Deadlines Extended
As you probably know, the IRS postponed the due dates for certain federal income tax payments but not all of them. New guidance now expands on the filing and payment relief for individuals, estates, corporations, and others.
Under IRS Notice 2020-23, nearly all tax payments and filings that would otherwise be due between April 1 and July 15, 2020 are now postponed to July 15, 2020. Most importantly, this would include any fiscal year tax returns due between those dates and any estimated tax payments due between those dates, such as the June 15 estimated tax payment deadline for individual taxpayers.
Economic Impact Payments
You also have likely heard about the cash payments the federal government is making to individuals under certain income thresholds. The Coronavirus Aid, Relief, and Economic Security (CARES) Act will provide an eligible individual with a cash payment equal to the sum of: $1,200 ($2,400 for eligible married couples filing jointly) plus $500 for each qualifying child. Eligibility is based on adjusted gross income (AGI).
The IRS announced on their Twitter account that it deposited the first Economic Impact Payments into taxpayers’ bank accounts on April 11. “We know many people are anxious to get their payments; we’ll continue issuing them as fast as we can,” the tax agency added.
The IRS has announced additional details about these payments:
- “Eligible taxpayers who filed tax returns for 2019 or 2018 will receive the payments automatically,” the IRS stated. Automatic payments also will go out to those people receiving Social Security retirement, survivors or disability benefits, and Railroad Retirement benefits.
- There is a new online tool on the IRS website for people who did not file a 2018 or 2019 federal tax return because they did not have enough income or otherwise were not required to file. These people can provide the IRS with basic information (Social Security number, name, address, and dependents) so they can receive their payments.
You can access the Economic Impact Payment portal here. This allows you to track your payment, update your pertinent details, and enter non-filer information.
This only describes new details in a couple of the COVID-19 assistance provisions. Members of Congress are discussing another relief package, so additional help may be on the way – we will keep you updated. Contact us if you have tax or financial questions during this challenging time.