Per the IRS, stimulus checks will be issued in the next 3 weeks. Here is the information that we know:
- The checks will be based on 2019 tax returns. If you have not filed for 2019, then they will be based on 2018. We are currently reviewing all 2018 returns and comparing to information we have for 2019. We will contact you via email with information or questions
- Individuals who earn $75,000 or less qualify for $1200
- Head of household who earn $112,500 or less qualify for $1200
- Married filing jointly who earn less than $150,000 qualify for $2400
- Dependents who qualify for the child tax credit are eligible for additional $500 per dependent
- The payments phase out once you exceed the threshold
- If you receive social security, you will receive the payment, even if you don't file taxes
- If you do not receive social security or file taxes, please setup a free consultation with us this week to see what can be done
- Payments will only be garnished for past due child support
- Payments will be reconciled against 2020 tax return. Over payments do not have to be paid back. Underpayments will be credited.
- This payment is not taxable income
I
F YOU THINK THAT YOU WOULD QUALIFY IN 2019 BUT NOT 2018 OR IF YOU HAD A CHANGE IN DEPENDENTS, CONTACT US ASAP
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- Contributions to retirement plans have been extended until July 15, 2020
- You can now may a withdrawal up to $100,000 from your retirement plan without penalty. You will not pay taxes on the amount withdrawn if you pay it back in full by 3 years from the date of receipt of monies. **We are still waiting for finalized guidelines on who qualifies to take it out**
- RMD's for 2020 are suspended
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- Installment agreement payments between April 1 - July 15 are suspended. Interest and penalties will continue to accrue. **It is not clear if you have to contact the IRS to request this or if it is automatic.**
- Field collection activities - liens and levies are suspended. However, field revenue officers will continue to pursue high-income non-files.
- Passport certifications - suspended
- Private debt collections - suspended
- Field, office, and correspondence audits - no new ones will be started, but they may continue with ongoing ones
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- Allows a maximum $300 deduction for charitable contributions without itemizing deductions
- Suspends AGI Limits for Individuals and Corporate donors - prior was capped at 60% for individuals. Reminder ** for donations to be deductible, they must "duly qualified". This rules out friends, relatives, and any other person or group who lacks tax exempt status.
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SELF EMPLOYED UNEMPLOYMENT
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The CARES bill created a new program, called Pandemic Unemployment Assistance, that extends benefits to gig workers, contractors, and others who wouldn't otherwise qualify, but cannot work due to the coronavirus emergency. Apply thru state unemployment sites.
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- Individual 1040's 7/15/20
- Individual 1040 payments 7/15/20
- Individual extensions 10/15/20
- Interest and penalties will not be accrued until after 7/15/20
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- Student loan payments and interest is deferred until 9/30/29
- HDHP can pay for COVID-19 testing and treatment
- Paid sick/family leave - still waiting on final guidance
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MESSAGE FROM RUTH AND GRACE
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We want our clients to know that we are following all of the items as they evolve. What we have published here today is just what we know and is all subject to additional guidelines published by the IRS.
In an effort to quickly assist our clients with financial priorities (determining if 2019 needs to be filed, rush filing 2019 returns where needed, assisting with unemployment applications, assisting with sba loans, etc) we are implementing the following effective immediately thru April 10th:
- If we have to rush file your 2019, we will not be charging rush fees, just normal filing fees. If we have to file amendment, it will be the normal amendment rate
- Providing 15 minute free consultations for individuals. Additional 15 minute blocks will have to be schedule and will be $25 per $15. Please schedule a time here: Setup appointment with Abacus.
- Limiting answering phone calls/emails
- Suspending all other accounting/tax preparation activities (excluding payroll)
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Be Safe Be Diligent Be Prepared
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2941 West State Road 434 Suite 400
Longwood, FL 32779
Phone: (321) 972-5010
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