Randall S. van Reken, EA, CFP, ATP

Tax Man LLC

Early Information on the COVID-19 Stimulus Package


We are open for business as usual during normal business hours:

As we are all concerned about social distancing, we are not scheduling in person appointments at this time, but we have several options available:

  • Drop off your documents (include current contact information including email) during normal business hours.
  • Snail mail (the post office is still operating)
  • After hours drop slot in the door on the east side of the building directly into our office (the only door on the east side of the building.
  • Upload your documents using the guest exchange side of our secure document site at https://taxmaninc.securefilepro.com 
  • ​We can then handle Q&A by phone or email.


In late March 2020, Congress passed the COVID-19 Stimulus Package.  While the details on implementation are very fluid and still developing, here's what we think will happen during April 2020.


Delayed filing and payment deadlines:

All tax return filing deadlines have been extended to July 15, 2020 for 2019 returns.  These include:

  • Individual Tax Returns - Form 1040
  • Payments normally due 4-15-2020 are extended to 7-15-2020 without penalty or interest through that date.
  • Business Tax Returns - Forms 1120S, 1120, 1065 and 1041
  • 2019 IRA contribution deadline
  • 2019 HSA contribution deadline
  • 2020 first estimated payment (normally due 4-15-2020) is delayed to July 15, 2020 - Curiously the second estimated payment is still due June 15, 2020 (Oops!)


Individual Stimulus Payments:

  • Individual filers will automatically receive a stimulus payment of $1,200 per taxpayer, $2,400 per couple plus $500 for each dependent child under 17. 
  • To qualify for a full payment, a taxpayer's adjusted gross income must be under $75,000 for single taxpayers, or under $150,000 for married taxpayers.  Income levels in excess of these thresholds, will be reduced according to a formula I won't bore you with at this time.
  • If you have filed your 2019 return when the IRS scans taxpayer files, it will be based on 2019 adjusted gross income (line 8b of your 2019 Form 1040).
  • If you have not filed your 2019 return, it will be based on 2018 adjusted gross income (line 7 of your 2018 Form 1040).
  • If you have not filed a 2018 return, you will NOT get a stimulus check unless you are collecting Social Security.  If you are collecting Social Security, but had/have no need to file in 2018 or 2019, it will occur automatically based on your SS payments.  So you'll want to file 2018 and/or 2019 ASAP.
  • If you normally have no need to file (and are not a dependent of another person) and are NOT collecting Social Security, the IRS will allow us to file a "Simple Tax Return" so that you may get a stimulus check.  That is now available and we will be happy to file such a return for you at no charge.  If you wish to do this yourself, the link https://www.irs.gov/coronavirus/non-filers-enter-payment-info-here.  Use the Non-Filers: Enter Your Payment Info Here link to file this "Simple Return."
  • Payments will be made the same way your refund was processed in the relevant year.  If you had direct deposit, it will be direct deposited to that same account.  If you get SS direct deposited, it will go to the account.  If you did not have direct deposit it will be mailed to the address on the 2018 or 2019 return (if 2019 has been filed).
  • We have NO WAY to change the method of payment, e.g., we CANNOT change your direct deposit account.  If you no longer have that account and the stimulus payment is returned to the IRS, it will be mailed to the last address used.  Unfortunately, that will take longer and we cannot change that from our office short of filing an original 2019 return.  To update your bank information for direct deposit, go to the IRS website link at https://www.irs.gov/coronavirus/get-my-payment and click on the Get My Payment link. 
  • If you have already filed 2019, filing an amendment will NOT change the stimulus check processing since the processing time for amendments typically takes 8-16 weeks.
  • Generally this payment is non-taxable.  However, if your 2020 income exceeds the thresholds above, it may have to be repaid partially or in full on your 2020 return next spring.
  • The only thing we can control at this point is whether to accelerate (or delay) your 2019 filing to determine your greater stimulus check potential.  Today alone I had clients who wanted to accelerate the 2019 filing (since it would result in a larger check) and others who wanted to delay the filing since the 2018 was below the threshold (but 2019 will be above).
  • Children (particularly those in college who are eligible to be claimed as dependents by their parents) will NOT be eligible for a stimulus check regardless of income.


Unemployment:

  • Affected individuals may qualify for unemployment which will be extended for longer than normal time periods if you remain unemployed for an extended time.
  • For the first time ever, self-employed individuals (who historically have not been covered by unemployment insurance) WILL be able to collect unemployment.
  • Details on this process are unclear at this time but will be handled by the state unemployment agencies.  In Nevada, more information can be found at: https://detr.nv.gov/.  Click on the banner link at the top of the page links on the left side menu.


Businesses and Employers:

There are a number of very complicated provisions for employers, self-employed individuals, and businesses including partially delaying payroll tax payments and self-employment taxes without penalty, as well as possible small business loans.  


Links for more information include:​


Scams (Yes, there are already scams about this):

Be aware that there are ALREADY scams being perpetrated about the Stimulus Program.  For more information about these crooks go to:

https://home.treasury.gov/services/report-fraud-waste-and-abuse/covid-19-scams


More will be posted as things develop.

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