In late December, President Trump signed into law the $900 billion stimulus bill, a second round of bailout for the American people suffering through this pandemic. This bill provides for stimulus payments of $600 subject to income phaseouts of $75,000 single and married filing separately (MFS), $112,500 head of household, and $150,000 married filing joint. The phaseouts will be based on 2019 income. $500 will also be paid out for dependents under the age of 17.
Stimulus checks and direct deposits began flowing to Americans on Wednesday, December 30.
The IRS is recalibrating its website to allow those who have had address changes or did not file tax returns for 2019 to provide their contact data for receipt of their checks.
The other provisions in this bill are as follows:
Naturally, there are caveats, exceptions, special circumstances, and other complications involved in all of the above. If you have questions, please consult your tax advisor, or call my office for more information.
The IRS predicts a normal tax season this year with the due date of April 15 and extensions allowed for filing to October 15 for individual returns. Corporate and partnership returns are due on March 15. REMEMBER: the extension is for additional time to file, not additional time to pay. Your taxes must be paid by the initial due date and if they are not yet filed, you must estimate your liability and pay it with the extension form.
Many of you collected unemployment during 2020. Bear in mind that this is taxable income that must be reported on your 2020 income tax return.
The big question is whether or not Congress will pass the bill to increase the stimulus payments to $2,000.
We are hopeful for a healthy, happy, and prosperous New Year for us all. And I believe there is every reason for optimism.