More time to pay…and now more time to file
If you’ve been following the news, and most of us have, you’ve heard about the extra time the Federal Government is giving us to pay our income taxes if we owe. Well, as of today, they have also extended the tax filing deadline. 2019 tax returns now have a filing deadline of July 15, 2020!
If you are expecting a refund, however, file now and get your money to assist during this challenging time.
Large and detailed bill now in negotiations
A massive bill introduced by the Senate includes several direct economic relief factors in response to the COVID-19 pandemic. This bill is currently being debated, and we should know more by next week.
Checks directly to families
Part of the bill includes stimulus checks to taxpayers. The bill would allow for $1,200 per adult – or $2,400 per married couples filing jointly, and $500 per child. It will be based on income reported on 2018 tax returns, and all taxpayers must provide a Social Security number or adoption taxpayer identification number for each person. There are more qualifications such as amount of income. Checks would start to phaseout for those earning more than $75,000. Families falling into the low income bracket with no federal income tax liability would receive less.
Estimated Tax Payment deadlines extended
Back to taxes, if you pay estimated tax payments, you would now have until October 15th to pay for quarters 1, 2, and 3. In other words, you pay April, July and October payments by October 15th.
Loans to businesses
Also included in the bill are loans to small businesses with under 500 employees. The portion of the loan used by the small businesses to cover their payrolls could be forgiven if the firms retain their employees through the end of June 30. Loans given to firms with tipped employees, such as bars and restaurants, could be forgiven if they are used to provide additional wages to their employees.
The bill includes “loans and loan guarantees” for passenger airlines, cargo air carriers, and other eligible businesses, a category administration officials have suggested could include the hotel and cruise industries.
And more…
There are special rules suggested for Retirement Account distributions if used for a coronavirus-related situation, and charitable limits would be suspended. Restrictions apply.
And if you have student loans, you will be able to defer payments for three months without penalty.
These are only a few points from this very long and involved bill.
We know the tax deadlines – for both FILING and PAYING have been extended! Let’s see if the Government can negotiate the rest.
Stay tuned!