TAX REFUND!? – Originally the most dreaded day of the year, other than going to the dentist, today you might actually want to look at your bank account! Why? Today is the first day many Americans have received a stimulus payment called the ECONOMIC IMPACT PAYMENT.
If you filed your 2018 or 2019 tax return and had direct deposit, you might have already received this. If not, be patient as you will in the next week or so because they started with the lowest income and are working from there. If you did NOT file in 2018 or 2019, or you did NOT have a refund direct deposited, or you do NOT have the SAME direct deposit account, you need to go to the IRS website online tool for Non-Filers. Then to track your payment you can go to Get My Payment. But please be patient as the website is slow due to so much traffic.
Eligibility is largely based on income, and it excludes individuals earning more than $99,000 and married couples (without children) earning more than $198,000. Those who can be claimed as a dependent for tax purposes, like many college students, are also ineligible for the payments, as well as undocumented immigrants who don't have Social Security numbers. In general, individuals and heads of households are due up to $1,200 and married couples will receive up to $2,400, plus $500 per child. The payments start phasing out for individuals with adjusted gross incomes of more than $75,000, heads of households earning more than $112,500, and married couples who earn more than $150,000. The amount will then be reduced by $5 for every additional $100 of adjusted gross income and won't be offset by any back taxes owed and won't affect refund payments for 2019. To see how much you are eligible, click here.
TAX RELIEF? – Originally the most dreaded day of the year, on April 9, 2020, the IRS extended the filing deadline from today, April 15th to July 15, 2020. There is NOTHING you need to do to get this relief and it also extends the time to pay any 2019 tax liability, extends the time to fund any retirement accounts for 2019, and extends the first and second quarter estimates for 2020, all WITHOUT penalty. Should you still need more time to file beyond July 15, 2020, you would then need to file the normal extension Form 4868 for individuals and Form 7004 for businesses on or before July 15, 2020 to request an extension to FILE ONLY (any taxes are still DUE!) until October 15, 2020.
TAX REQUEST! – Originally the most dreaded day of the year, if you file an Arizona state return and have a tax liability, today is the LAST day you can make an Arizona state Tax Credit donation and we REQUEST that if you received a stimulus payment, and if you are financially able to, please donate to one of these charities as you will receive a dollar for dollar tax credit on your Arizona state tax return. We REQUEST that you donate to any charitable organization you believe in because they are in desperate need of your financial support. And most importantly, we REQUEST that you help support your neighborhood restaurants, businesses and neighbors as there are far too many people and families in need.
So with your REFUND and RELIEF today, please extend KINDNESS as we all cope with our new normal and you will definitely see the RETURN.
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AA Tax CPA, LLC.