Frances A. Raniolo, CPA

The Senate unanimously passed the Coronavirus Aid, Relief, and Economic Security Act (CARES). The House is expected to pass this legislation tomorrow morning and the president to sign it into law shortly after. Included in the legislation are 2020 recovery rebates for individuals. According to the Senate Committee on Finance summary: All U.S. residents with adjusted gross income up to $75,000 ($150,000 married), who are not a dependent of another taxpayer and have a work elig...ible Social Security number are eligible for the full $1,200 ($2,400 married) rebate. In addition, they are eligible for an additional $500 per child. This is true even for those who have no income, as well as those whose income comes entirely from non-taxable, means-tested benefit programs, such as SSI benefits. For the majority of Americans, no action on their part will be required to receive a rebate check as the IRS will use a taxpayer’s 2019 tax return if filed, or alternatively, their 2018 return. This includes many low-income individuals who file a tax return in order to take advantage of the refundable earned income tax credit and child tax credit. The rebate amount is reduced by $5 for each $100 that a taxpayer’s income exceeds the phaseout threshold. The amount is completely phased out for single filers with incomes exceeding $99,000, $146,500 for head of household filers with one child, and $198,000 for joint filers with no children.

So now most states, including NY and NJ are following the IRS with extended due dates to July 15, but PLEASE get your documents to your tax preparer as soon as possible anyway. The majority of taxpayers are due a refund, so why wait? And if you do owe, you can file now and pay by July 15. GET IT DONE NOW PLEASE!

The IRS has postponed the due date of filing of tax returns until July 15. As of now, the States have NOT extended their due dates, but I will keep you up to date.

The Secretary of the Treasury has granted relief with respect to to the due date of Federal Income tax owed to July 15, 2020, which would otherwise be due on April 15, 2020. This relief applies to both the balance of tax due to the IRS and the first quarter 2020 estimated tax payment, and applies to Federal Income tax, including the self-employment tax. It does NOT extend the filing date for the income tax return due on April 15. If the return cannot be completed by April 15, 2020, a proper and timely extension MUST BE filed.

Social distancing? Ask me about my secure online portal for submitting important documents. No need for in-person document dropoff!