COVID-19/Coronavirus Tax Relief News

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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