Just this week – the week of April 13, 2020 – the U.S. Treasury sent out many of the $1,200 checks, or deposited the money directly, to those qualified adults who fit the criteria to receive stimulus money. That means that anyone who made less than $75,000 in 2018 and 2019 should have received $1,200 from the U.S. government to defray the costs of this terrible pandemic.
So, if you are eligible to receive that money and did not receive anything, your first order of business is to find out the best way to obtain that benefit. Further, the obvious next question is, what is next during this pandemic? Is the government doing anything additional to help American citizens, and are there any tax implications to those measures?
Accordingly, in this blog, we will tackle some of those issues. First, we will discuss what you can do if you think you should have received a stimulus payment but did not. Second, we will talk about the tax implications of the stimulus payment this month. Finally, we will discuss the other steps that the Internal Revenue Service (IRS) has been taking to ease the burden on individuals during this COVID-19 crisis.
If after reading this blog, you have additional questions about your need for a tax planning law firm in Florida, please contact The Law Office of Mary King, P.L. We are attorneys who are laser-focused on tax strategies in Florida. We provide services in all areas from debt settlement to planning. Also, we are an experienced tax planning law firm in Florida. Call today at 941-906-7585, or fill out our contact form. We are here to help you.
Should You Have Received a Stimulus Check?
At the beginning of April 2020, Congress passed the CARES Act, which provided for a stimulus payment (a so-called Economic Impact Payment) of $1,200 to every American who makes less than $75,000, based on 2018 and 2019 tax returns. That number becomes $2,400 for a married couple making less than $150,000. For those individuals who make between $75,000 and $99,000 (or married couples making between $150,000 and $198,000) they will receive a reduced amount of stimulus money, going down on a sliding scale as your income approaches $99,000 (or $198,000 for married couples).
The stimulus money began to be distributed this week. If you have provided, in previous tax returns, your direct deposit information, then the $1,200 should have been directly deposited into your bank account. Others, however, may receive a paper check.
If you did not receive a check, and you believe that you should have, then you may want to go to the IRS website to see how you can figure out what might have gone awry. The first place you should try is the “Get My Payment” page on irs.gov. That page can be found by clicking here. Next, if you still need additional information, try clicking here for the IRS’s stimulus payment information center.
Note that you might not have received a payment because you did not file a federal tax return in 2018 or 2019. If that is the case, it may be worth the effort to file a 2019 tax return now – with the help of a tax planning law firm in Florida – so that you can be eligible to receive the stimulus payment.
If You Did Receive a Stimulus Check, Do You Need to Worry about Paying Taxes on that Money?
No. Fortunately, the stimulus payment is not taxable as 2020 income, because it is not considered income for purposes of filing your taxes. Therefore, it will not reduce any tax refund that you are owed this year, nor will it increase the amount you owe the IRS when you file your 2020 tax returns next year.
Also, for those whose income determines their eligibility for certain types of government assistance or benefit programs, please know that the stimulus payment will have no impact on those eligibility thresholds as well.
What Else is the IRS Doing During the COVID-19 Crisis?
The IRS, in an effort to have people focus on their well-being and helping those less fortunate, is launching the “IRS People First Initiative.” This initiative has many adjustments and benefits related to tax matters for many Americans. You would be wise to consult with a tax planning law firm in Florida to get the full list of benefits, but here are a few of the advantages in the IRS’s People First Initiative.
1. Existing Installment Agreements. For those who are currently paying tax debt through an installment agreement with the IRS, any payments due between April 1 and July 15, 2020 have been suspended. That is very good news. Call your local tax planning attorney for additional information.
2. New Installment Agreements. If the pandemic has put you in a position that you now will have difficulty paying a tax debt, then you should go to IRS. gov to enter into a monthly payment arrangement.
3. Offers in Compromise (OIC). The IRS has given all pending OIC applications additional time, to July 15, to close those OIC deals. Also, the IRS will, until July 15, allow individuals to suspend their OIC payments, and the IRS will not default on those who are delinquent in filing their tax returns for the 2018 tax year.
In sum, the IRS’s People First Initiative has a lot of ways to assist taxpayers during this challenging time. To understand all of the benefits available to you, it is important to reach out to a tax planning law firm in Florida – like the Law Office of Mary E. King.
Get the Help of an Experienced Attorney to Handle Your Tax Planning in Florida
If you have questions about COVID-19 legislation, are struggling with back taxes, or if you are a business that needs to plan tax payments throughout the year, then you need the help of an attorney who has experience with tax planning attorney in Florida. The Law Office of Mary King P.L., can help. We are an experienced tax planning law firm in Florida, and we offer complete services in all areas from tax implications of alimony to planning the most efficient tax strategy for individuals and businesses.
Call our IRS problem-solving services firm in Sarasota, Florida today to schedule an initial consultation. With years of experience, the Law Office of Mary E. King can make sure that your tax issues are resolved in your favor. Fill out our online contact form, or call us at 941-906-7585.