COVID-19/Coronavirus Tax Relief News

$600 Unemployment Benefits Expected to Fall to $200 or $300 a Week

Optima Tax Relief provides assistance to individuals struggling with unmanageable IRS tax burdens. To assess your tax situation and determine if you qualify for tax relief, contact us for a free consultation.

With unemployment due to end this week, unemployed workers may see their additional benefits cut in half to $200 or $300 a week. This proposal outlined by Treasury Secretary Steven Mnuchin was announced last Thursday and negotiations are still proceeding to work out the finer details.

Currently, a new coronavirus relief package is being put together to assist millions of Americans who are financially struggling during the pandemic. The prior bill passed in March provided out-of-work Americans with an additional $600 per week, funded by the federal government. 

Discussions regarding the extension of unemployment benefits have been ongoing. It is expected that Congress will announce a new plan to provide the unemployed a reduced amount of $200 or $300 a week depending on data that is collected to determine what is feasible to distribute. 

Although taxpayers should expect a lower amount of unemployment funds coming their way, it is still expected to help them get by month to month. In addition to extending the length of time to receive unemployment checks, those out of work will also most likely receive a stimulus check to ease their current financial burdens. 

If you need tax help, contact us for a free consultation.

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Will Taxpayers Receive More Money in their Next Stimulus Check?

Optima Tax Relief provides assistance to individuals struggling with unmanageable IRS tax burdens. To assess your tax situation and determine if you qualify for tax relief, contact us for a free consultation.

Time is drawing near for a decision to be made as to whether or not a second stimulus check will be distributed to millions of Americans. Multiple bills have been proposed to provide relief to those that are financially struggling due to the coronavirus pandemic.

For weeks, Senate Majority Leader Mitch McConnell has worked with Treasury Secretary Steven Mnuchin on a relief package that would distribute stimulus checks only for those who have been financially impacted the most during the ongoing pandemic.

Negotiations have been ongoing throughout this week to make a decision as to who will qualify for the second round of stimulus checks as well as working out the details on how they will build upon the CARES act in order to assist businesses and Americans that are currently struggling to make ends meet.

Treasury Secretary Mnuchin confirmed that the proposed second stimulus check will be the same as the first, meaning taxpayers who qualify will receive up to $1,200. The guidelines for who qualifies for the stimulus check have not changed and will remain the same as the first: 

  • Single filers who earn less than $75,000 a year will receive the full $1,200. For those earn more than $75,000 should expect to see their check reduced by 5% of the amount they earn.
  • Joint filers who earn less than $150,000 a year will receive the full check however those who earn more will see their check reduced by 5% of the amount they earn over $150,000.

As negotiations continue, there is a general expectation that a decision regarding the expansion of the CARES act, as well as when the second stimulus check will be distributed, should be made before the end of July.

We will continue to update you with new information as this story develops. 

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Taxpayers Have Until May 13 to Submit Direct Deposit Information in Order to Receive Their Stimulus Check

Optima Tax Relief provides assistance to individuals struggling with unmanageable IRS tax burdens. To assess your tax situation and determine if you qualify for tax relief, contact us for a free consultation.

  • Millions of stimulus checks are still being sent out to taxpayers via direct deposit or ground mail.
  • Individuals will receive their checks much quicker if they fill out their information for direct deposit on the IRS website.
  • Taxpayers have until noon on May 13, to submit their direct deposit information in order to receive their check through their preferred bank account.

If you have yet to receive your stimulus check and would like to receive your money directly in your bank account, there is still time to do so. The IRS announced last Friday that taxpayers will have until noon on Wednesday, May 13, to submit their direct deposit information. 

For those that fail to set up direct deposit before the deadline, the government will send out paper checks that will arrive sometime in May and in June. 

Individuals who qualify for the stimulus check will receive up to $1,200, or a maximum of $2,400 for married couples, in addition to $500 for each child under the age of 17. The check is meant to assist taxpayers that are struggling financially due to the coronavirus outbreak. 

The IRS has provided the Get My Payment tool that allows individuals to not only check the status of their payments, but to also request that their stimulus check be sent to them via direct deposit. 

For those who are not required to file their taxes, the IRS has also provided a non-filers tool that allows taxpayers to submit their basic tax information  such as their bank account number, in order to receive their check through their preferred bank account.

If you receive government benefits through Social Security, Supplemental Security Income, Railroad Retirement or Veteran Affairs, you will not need to fill out any information to receive your money. These individuals will have their stimulus check automatically sent out to them.

If you need tax help, contact us for a free consultation.

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When will You Receive your Stimulus Check?

Optima Tax Relief provides assistance to individuals struggling with unmanageable IRS tax burdens. Our Covid-19 blogs will help taxpayers find valuable tax relief information during the Coronavirus pandemic. To assess your 2020 tax situation and determine if you qualify for tax relief, contact us for a  free consultation.

As of this week, the IRS has started to send out stimulus checks to taxpayers. An estimated 80 million people received the payment deposited into their bank accounts on April 15th, others will be waiting longer to receive their money. The stimulus check is part of the government’s response to the coronavirus pandemic.

What Date Will I Get My Stimulus Check?

The initial round of payments went to those who filed their 2018 and 2019 tax returns who requested directed deposits for their tax refunds. Those who had the lowest amount of income were distributed their checks first. In addition to this, Social Security recipients will automatically receive their tax payment even if they have not filed a tax return. 

For those who opted out of direct debit, the IRS will distribute checks, taxpayers could be waiting for weeks before they receive their money. If you have not been required to file a tax return for the past two years, the IRS will require you to submit some information before they send you a check. 

Can I Check When I will Get My Stimulus Check?

If you have yet to receive your stimulus check and want to find out further information on when you should expect it, the IRS created an online tool called Get My Payment that allows taxpayers to check on the status of their money. 

In order to track the status of your money, the IRS will require that you enter your Social Security number, date of birth, and mailing address. For those that attempted to use this tool on Wednesday, the Treasury Department recommends checking again since the tool updates once daily. 

Read more on whether taxpayers will receive more money in their next stimulus check? If you need tax help, contact us for a free consultation.

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Retirement Account Owners Able to Make Early Withdrawals for Covid-19 Costs

Optima Tax Relief provides assistance to individuals struggling with unmanageable IRS tax burdens. To assess your tax situation and determine if you qualify for tax relief, contact us for a free consultation.

  • The Relief and Economic Security Act allows taxpayers to pull from their retirement account and utilize the money specifically for coronavirus emergency expenses.
  • Taxpayers are required to put withdrawn funds back into your account within three years or face penalties.
  • If you withdraw from your retirement and are unable to pay back the amount within three years, it is recommended that you consult a tax professional.

Because of all the uncertainty our nation is currently facing, it may leave some people wondering how they’re going to pay their bills and how they will cope financially after this crisis is over. The government has just announced that in addition to the stimulus package, they will also be providing additional relief by allowing taxpayers to pull from their retirement accounts for Covid-19 emergency related expenses without penalty. It is important to understand the stipulations from pulling out of your retirement account and the possible repercussions you may face in the future for doing so. 

The Relief and Economic Security Act allows taxpayers to pull from their retirement account and utilize the money specifically for coronavirus emergency expenses. Retirement account owners will be able to withdraw up to $100,000 from their accounts and will be able to extend their repayment period for existing loans without facing any penalties.  

Although you are able to take out money from your retirement account, the government does require you to put withdrawn funds back into your account within three years. Should you not put the funds back after this period of time, the IRS will place penalties against you in addition to possibly owing a tax balance the next time you file your taxes. 

If you need to withdraw from your retirement account and know that there is a possibility that you may not be able to place the funds back within the three year period, it is recommended that you consult with a tax professional to see what your options moving forward and how you can possibly minimize your balance or see what payment plan options are available to you. 

If you need tax help, contact us for a free consultation. 

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The IRS will Move Their Tax Filing Deadline to Assist Taxpayers Affected by Covid-19

Optima Tax Relief provides assistance to individuals struggling with unmanageable IRS tax burdens. To assess your tax situation and determine if you qualify for tax relief, contact us for a free consultation.

  • Treasury Secretary Steven Mnuchin announced emergency measures to assist those affected by Covid-19
  • The IRS announced that it will be moving its national income tax filing day from April 15 to July 15.
  • Mnuchin encourages those who will have a tax refund to file now in order to get their money as quickly as possible. 
  • Taxpayers will have more time to file their taxes and pay their tax debt without interest or penalties. 

On March 17, 2020, Treasury Secretary Steven Mnuchin announced emergency measures that the government would take to assist those affected by Covid-19. Mnuchin announced that President Trump ordered taxpayers to be given additional time to file their taxes and make tax payments without interest or penalties.

The IRS announced that it will be moving its national income tax filing day from April 15 to July 15 as part of an effort to provide taxpayers with financial relief during such difficult times given businesses are temporarily closing their doors to prevent further spread of the virus. 

Mnuchin encourages those who will have a tax refund to file now in order to get their money as quickly as possible. For those who will most likely owe a tax balance, the IRS has provided this extension to help deal with the financial fallout of the coronavirus pandemic. For the taxpayers that are currently suffering financially, they will have more time to file their taxes and pay their tax debt without interest or penalties. 

The Treasury Department also announced earlier this week that the 90-day postponement on tax payments applies to 2019 income taxes that are owed and first-quarter tax payments that would have originally been due by April 15.

Although a tax extension has been implemented, it is still encouraged that all taxpayers file their tax returns and pay their tax debt before the new deadline. For those who wait to file their taxes until after the deadline, penalties and interest will be added to any balance owed and, should you receive a refund, penalties will be added for filing late. It is important for all taxpayers to keep themselves updated on current IRS events in order to understand how they may be affected by the new tax extension.

If you need tax help, contact us for a free consultation.

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