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  • Writer's pictureSteve

The Latest Helpful Coronavirus Information

 In the last two weeks there has been an unprecedented amount of information and legislation coming out of Washington D.C. and state & local governments.  Much of it is financial in nature and meant to help you, whatever your current situation may be.  With that in mind, below is a hopefully succinct summary:

  • The normal April 15, 2020 tax filing and payment deadline has been extended to July 15, 2020.

  • Estimated first quarter tax payments normally due April 15th have been extended to July 15, 2020.  Second quarter estimated payments are still due June 15th! 

  • 2019 IRA and HSA contribution deadlines have likewise been extended to July 15, 2020.

  • A one-time recovery rebate is an advance refundable credit against your 2020 taxes in the amount of $1200 for individuals ($2400 for joint filers) plus an additional $500 per child under age 17 who qualifies for the Child Tax Credit.  All U.S. residents with AGI up to $75,000 ($150,000 for joint filers) are eligible.  This is true even if you have no income.  The credit is phased out for incomes between $75,001 and $99,000 ($150,001 and 198,000 joint filers).  You do not need to take any action to receive these funds.  They will be direct deposited into the same account you most recently filed a tax payment with.  Otherwise a check will be mailed to your last known address.  Note: your 2019 AGI will be used.  If that is not available, your 2018 AGI will be used.  So, for a few people, it may behoove you to wait to file your 2019 return. 

  • The 10% early-withdrawl penalty on retirement plan distributions is waived for COVID-19 related distributions up to $100,000 from qualified retirement plans or IRAs.  This income can be included ratably in your tax return over a 3-year period.  

  • RMDs from 401(k)s, 403(b)s, 457(b)s, SEP, SIMPLE, Traditional and Rollover IRAs, and Inherited IRAs are waived for calendar year 2020.

  • A temporary new unemployment program has been initiated for individuals not traditionally eligible (self-employed, independent contractors, etc.) who are unable to work due to COVID-19.

  • Payments on federal student loans are suspended until September 30, 2020.  Also, no interest will accrue.

  • Extended paid sick leave, family leave and food assistance programs has been approved.

  • A $300 "above the line" deduction is available for charitable contributions made to 501(c)(3) organizations for taxpayers who take the standard deduction.

There is a lot here.  If anything doesn't make sense, needs clarification, or seems to be omitted, please feel free to e-mail me or call.  And, as I mentioned last month, if you're nervous, distraught, scared, etc., let's talk.

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