Treasury Department and the Internal Revenue Service (IRS) announced special Federal income tax return filing and payment relief in response to the ongoing Coronavirus Disease 2019 (COVID-19) emergency. Although the date has extended, it would remain in your best interest to understand the impact and definition of the change. Contact us to go over these changes and how it may impact you.
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Small and midsize employers could be elegible to take advantage of two new refundable payroll tax credits with focus on providing COVID-19-related leave to their employees. This relief to employees and small and midsize businesses is provided under the Families First Coronavirus Response Act (Act).
The Coronavirus Aid, Relief, and Economic Security Act (CARES) is in response to the public health and economic crisis as a direct result of COVID-19. The goal of the legislation is to provide recovery checks to most Americans, strengthen unemployment insurance and increase funding for public health programs.
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. Social Security recipients and railroad retirees who are otherwise not required to file a tax return are also eligible and will not be required to file a return.
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 and up to $500 for each qualifying child.
With every crisis, pandemic, or disaster, there seem to be no shortage of scams and fraud activities. Be aware and be responsible. IRS posted several warning about the Economic Impact Fund payments. Take note of the following things Scammers may -
When will you receive your refund? The answer depends on how you filed your return. The IRS should issue your refund check within six to eight weeks of filing a paper return. If you chose to receive your refund through direct deposit, you should receive it within a week. If you use e-file, your refund should be issued between two and three weeks.
You can check on the status of your Federal Refund by clicking on the button below
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