COVID-19/Coronavirus Tax Relief News

You Could be Receiving a Monthly $2,000 Check and Canceled Rent or Mortgage Payments for 1 Year

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.

Stimulus Check:

Lawmakers are proposing a new economic plan to assist taxpayers during this ongoing crisis. The Emergency Money for the People Act would give Americans a $2,000 check every month for a year.  Those receiving the check must be 16 years and over and earn less than $130,000 and would continue until unemployment levels drop back down. 

Individuals who were left out of the initial act would be included, such as some high school students, college students and adults with disabilities who were previously ineligible to receive the prior stimulus check because they were claimed as a dependent on another tax return.

Additional eligibility requires:

  • Married couples earning less than $260,000 would receive $4,000 a month.
  • Qualifying families with children would receive $500 for up to 3 children.
  • Those who had no earnings, were unemployed, or currently unemployed will qualify for a stimulus check.
  • Taxpayers must have their 2019 or 2018 tax returns filed in order to receive their check. 

Canceled Rent/Mortgage Payments:

In addition to the stimulus check proposal, lawmakers also want to introduce an act that would help struggling Americans that are currently unable to pay their rent or mortgage due to the coronavirus. The Rent and Mortgage Cancellation Act, if approved, would call for a nationwide cancellation of mortgage and rent payments through the duration of the coronavirus pandemic, or up to one year. 

The bill would additionally include:

  • Rent or mortgage forgiveness for the primary resident.
  • No negative impacts on your credit score.
  • A relief fund would be established for landlords and mortgage holders.
  • No accumulation of debt for renters or homeowners.

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

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

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What You Need to Know About the Economic Relief Small Business Loan

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.

  • New negotiations on Capitol Hill have been ongoing in an attempt to assist the small businesses that have yet to receive relief.
  • Early discussions included allocating more money for hospitals and state governments during this time of crisis.
  • $60 billion in loans and grants would go to a small business lending program.

More than 22 million people have lost their jobs within the last month and many businesses are struggling to stay open as the economy continues to get closer to an impending recession. Discussions have been surrounding a new small business loan on Capitol Hill that is expected to assist small businesses that have been affected by the economic fallout from the coronavirus. 

Last Thursday, the $349 billion emergency small business lending loan program ran dry and now new negotiations on Capitol Hill have been ongoing in an attempt to assist the small businesses that have yet to receive relief. 

Treasury Secretary Steven Mnuchin and Democrats are attempting to reach an agreement for a package that will immediately increase funding for the program to assist additional businesses. Early discussions included allocating more money for hospitals and state governments
during this time of crisis with $75 million being directed to hospitals and $25 billion for testing. 

The package continues to be finalized, lawmakers are discussing an increase of $310 billion for the Paycheck Protection Program, with $60 billion being reserved for smaller financial institutions to distribute while the other half would be for provisioned lenders with less than $10 billion in assets and for institutions and with assets between $10 billion and $50 billion. An additional $60 billion in loans and grants would go to a separate small business lending program.

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

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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What You Need to Know About the Covid-19 Stimulus Package

Updated on March 30, 2020

  • Treasury Secretary Steven Mnuchin declared that Americans that requested direct deposit on their tax return could expect their stimulus checks to be deposited directly into their bank account within three weeks.
  • If you filed a paper copy tax return or opted out of direct deposit, the government will send a check in the mail.
  • The following will not receive a stimulus check: children who are 17 or 18 years old, adults claimed as dependents, nonresident aliens, estates, individuals who earn more than $99,000 or married couples earning more than $189,000, and people who have not filed their 2018 and 2019 tax return.

Click here to learn more about the stimulus package.

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 White House and Senate leaders struck a deal to pass a $2 trillion virus stimulus package to assist struggling businesses and taxpayers.
  • Individuals who are earning $75,000 or less in adjusted gross income will receive a check for $1,200 while married couples earning up to $150,000 would receive a check for $2400 – and an additional $500 per child in their household.
  • The new deal also calls for a new pandemic unemployment assistance program to provide assistance to those who are unemployed, partially employed, or for those who are unable to work due to the virus outbreak.

On March 25, Senate leaders approved a $2 trillion stimulus package created to assist struggling businesses as well as taxpayers. Because of the Coronavirus pandemic, many Americans have been left without jobs and businesses are unable to draw in any customers, causing an economic downturn. So what does the stimulus package mean for everyone, and how do you know if you qualify for the benefits and relief this package provides?

Under the stimulus package, individuals who are earning $75,000 or less in adjusted gross income will receive a check for $1,200 while married couples earning up to $150,000 would receive a check for $2400 – and an additional $500 per child in their household. If an individual makes more than $99,000 or if a couple makes more than $198,000 combined, they may not be eligible to receive a stimulus check. 

The bill also provides assistance to those who are currently unemployed by giving jobless workers an additional $600 a week for four months, on top of their state benefits. The new deal also calls for a new pandemic unemployment assistance program to provide assistance to those who are unemployed, partially employed, or for those who are unable to work due to the virus outbreak. This will include independent contractors and the self-employed who don’t typically qualify for this type of assistance.

The stimulus package will not only include provisions to assist people who have lost their jobs due to the outbreak, but also bail out large corporations that have been negatively impacted by the economic downfall. The bill will also support small businesses that face an existential threat due to measures taken to counter the virus outbreak. There are many new developments expected to be announced within the coming days, so make sure to monitor for updates on how the stimulus package can affect 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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Will Covid-19 Affect the Tax Deadline this Year?

Updated on March 17, 2020

  • 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
  • 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. 
  • Taxpayers will not be charged interest and penalties should they file the extension. 

Click here to learn more about how Covid-19 is affecting the tax deadline.

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.

  • President Trump has recently announced he would be extending the April 15 filing deadline for those that have contracted the virus
  • President Trump did not specify who specifically would qualify for a filing extension and for how long the extension would be for.
  • It is recommended that all healthy taxpayers file their taxes before the tax deadline.

Everyone is getting ready for tax season with the impending tax deadline right around the corner. However, with the new developments of Covid-19 affecting the general U.S. population and a potential quarantine looming around the corner, taxpayers are wondering how they will be able to get their taxes done. 

How Covid-19 may affect filing your taxes. President Trump has recently announced that because of the new developments and severity of the Covid-19 virus, he would be extending the April 15 filing deadline for those that have contracted the virus. Trump also stated that for those affected by the virus they would be able to defer paying their taxes by next month’s deadline.

What to be aware of when filing an extension. The IRS will most likely require proof for those that have contracted the virus should you choose to file a tax extension. In addition to this, President Trump did not specify who specifically would qualify for a filing extension and for how long the extension would be for. Several states have also extended their state tax filing for those affected by Covid-19.  You can click here to see which states have extended their tax deadlines.  

So what does this mean for those individuals who have not contracted the virus? It means that business is as usual for everyone else as of now. It is recommended that all healthy taxpayers file their taxes before the tax deadline and pay off any tax balance they may have in order to avoid accruing any additional penalties and interest. 

Tax season is almost at an end and it is vital to file your tax returns if you have yet to. It is also recommended to be on the lookout for further tax information regarding the Covid-19 virus and when you are able to file your tax extension should you qualify. 

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

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