Do you have questions or concerns right now? Call me on (732) 673-0510.
Quick Note: Was your stimulus debit card or check lost or stolen? Call this number 800-240-8100
To learn about the stimulus benefits available to businesses and self-employed CLICK HERE
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Related Blog Post Memo – Coronavirus Stimulus Payments. When Should I Receive Mine?
Treasury Secretary Steven Mnuchin said that direct deposits could start on April 16, 2020.
Stimulus Payments
The vast majority of people do not need to take any action. The IRS will calculate and automatically send the economic impact payment to those eligible.
The stimulus payment amounts are $1,200 per adult and $500 per child, if you fall under these Adjusted Gross Income limits. If you earn more than this, the benefits are being phased out. This DOES apply to self-employed people as well as W2 employees.
Adjusted Gross Income Levels
Individual $75,000
Head of Household $112,500
Married Filing Jointly $150,000
The government will use the information on your 2019 tax returns if filed, and your 2018 if not.
Checks will be reduced by $5 for every $100 exceeding those thresholds. It completely phases out at $99,000 in income for individuals, $146,500 for head of household filers with one child and $198,000 for joint filers with no children.
You are still eligible for a check if you have no income or if you rely solely on non-taxable government benefit programs like Supplemental Security Income benefits, or SSI, from Social Security. Many seniors do not file a tax return, not to worry, they will be sending payments to everyone who is receiving Social Security, even if they have not filed a tax return.
If the IRS has your banking information, the money will be direct deposited there in the coming weeks, or they will mail a check directly to the address on your form 1040.
If my income tax refunds are currently being garnished, will this payment be garnished as well?
No. In fact, the bill temporarily suspends nearly all efforts to garnish tax refunds to repay debts, including those to the I.R.S. itself. But this waiver may not apply to people who are behind on child support.
The IRS does not have my direct deposit information. What can I do?
In the coming weeks, Treasury plans to develop a web-based portal for individuals to provide their banking information to the IRS online, so that individuals can receive payments immediately as opposed to checks in the mail.
I am not typically required to file a tax return. Can I still receive my payment?
Social Security Recipients – NO.
But other people who typically do not file a tax return will need to either file a simple tax return or go to a portal the government is setting to get your information in the stimulus system so you can receive your benefits.
But this information is in a state of flux, so check back here for future updates.
How can I file the tax return needed to receive my economic impact payment?
IRS.gov/coronavirus will soon provide information instructing people who have not filed a tax returns.
I have not filed my tax return for 2018 or 2019. Can I still receive an economic impact payment?
Yes. The IRS urges anyone with a tax filing obligation who has not yet filed a tax return for 2018 or 2019 to file as soon as they can to receive an economic impact payment. Taxpayers should include direct deposit banking information on the return.
I need to file a tax return. How long are the economic impact payments available?
For those concerned about visiting a tax professional or local community organization in person to get help with a tax return, these economic impact payments will be available throughout the rest of 2020.
Unemployment Insurance
The goal is to expand existing state unemployment benefits in an attempt to replace the average worker’s paycheck for 13 weeks.
NOTE FROM NJ UNEMPLOYMENT: Freelancers, gig workers, independent contractors: While we wait for federal guidelines, we encourage you to apply for unemployment now. Your claim likely will be denied, but your ineligibility for regular unemployment is a prerequisite for receiving benefits due to COVID-19. Additional details will be posted online as they become available.
Whom does the bill leave out?
Workers who are able to work from home, and those receiving paid sick leave or paid family leave are not covered. New entrants to the work force who cannot find jobs are also ineligible.
These payments will be handled by your state unemployment insurance system.
$600 ADDITIONAL weekly benefits above state unemployment benefits
Benefits can last as long as 39 weeks, 13 weeks longer than current standards.
Business Owners, Independent Contractors and Self-Employed Individuals DO QUALIFY.
NJ Unemployment Website: https://myunemployment.nj.gov/
NY Unemployment Website: https://applications.labor.ny.gov/IndividualReg/
PA Unemployment Website: https://www.uc.pa.gov/Pages/default.aspx
How long would the broader program last?
Expanded coverage would be available to workers who were newly eligible for unemployment benefits for weeks starting on Jan. 27, 2020, and through Dec. 31, 2020.
I’m already receiving unemployment benefits. Will I receive any help?
Yes. Even if you’re already receiving unemployment benefits for reasons unrelated to the coronavirus, your state-level benefits will still be extended by 13 weeks. You will also receive the extra $600 weekly benefit from the federal government.
My unemployment recently ran out — could I sign up again?
Yes. If you’ve exhausted your benefits, eligible workers can generally reapply. But how much you get and for how long depends on the state where you worked. Everyone gets at least another 13 weeks, along with the extra $600 payment through July 31.
Are any unemployment benefits retroactive?
Maybe. If you are newly eligible for benefits, you may be able to claim state-level benefits retroactively, back to Jan. 27. But it will ultimately be determined by your state, which will consider the date that you became unemployed and any extenuating circumstances that prevented you from filing earlier, according to a representative for the Department of Labor.
People who are already receiving unemployment will not get any retroactive benefits. If your benefits run out, you’ll be eligible for the added 13 weeks of state-level benefits (as long as you continue to meet the eligibility criteria).
The extra $600 payment being paid by the federal government is also not retroactive.
Will this income disqualify me from any other programs?
Maybe. The additional $600 benefit counts as income when determining eligibility for means-tested programs, except for Medicaid and the Children’s Health Insurance Program, known as CHIP.
States have been incentivized to waive the one-week waiting period, but it’s unclear how long it will take to process claims — especially with state offices so strained by a flood of them.
Paid Family Leave
Up to 12 weeks of family leave, with the first two unpaid, for workers in businesses with less than 500 employees, who are staying home with children whose schools and day care centers have closed.
Retirement Plan Changes
For taxpayers under 59 1/2, the 10% early withdrawal penalty will be waived up to $100,000 distributions for coronavirus related expenditures. Also, the limit on retirement plans loans have been raised to $100,000 from the current $50,000.
RMDs, or required minimum distributions, have been waived for people over 72.
Where can I get more information?
Call me on 732-673-0510.
Also, the IRS will post all key information on IRS.gov/coronavirus as soon as it becomes available.
The IRS has a reduced staff in many of its offices but remains committed to helping eligible individuals receive their payments expeditiously. Check for updated information on IRS.gov/coronavirus rather than calling IRS assistors who are helping process 2019 returns.
Questions? Concerns? Call me on (732) 673-0510.
Please reach out to me without hesitation with any tax, business or accounting question, and to schedule a consultation.
Click here to request a consultation or ask me a question.
Tax Laws are complex.
It is very easy to make mistakes that can incur penalties.
Do you have a Tax, Accounting or Business Question?
Call Me Immediately. (732) 673-0510.
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ignoring your Phone Calls and Emails?
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Remember,
“If We Aren’t Working For You, Then You Aren’t Working At Your Best”
Chris Whalen, CPA
(732) 673-0510
81 Oak Hill Road
Red Bank, NJ 07701
www.chriswhalencpa.com
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