The stimulus bill passed by Congress can help individuals and small businesses in need now, but you may need to file your taxes as soon as possible to get the benefits.
Due to the outbreak of the covid-19 virus, the US Treasury announced that both the tax filing and payment deadlines would be pushed back from April 15, 2020 to July 15, 2020. The reason for this is to give citizens and businesses more time to pay their taxes while we endure the economic difficulties that come with quarantines and social distancing. If you owe taxes from last year, you can now wait to pay them until July and spend your money on rent, payroll, and other expenses.
With that said, there are still significant advantages to filing your taxes as soon as possible. First of all, if you owe money on your federal taxes you are not required to pay them until July 15th. You will not be fined, and your debt will not accrue interest until after the new deadline. Individuals and business owners should still check their state requirements, but at the federal level there are really no downsides to filing now.
File Now If You’re Due a Refund – You May Need Your Refund Money
On the other hand, if you are expecting a tax refund, getting that money in your pocket now can help immensely. Millions of Americans are already beginning to struggle to pay their bills as our economy deals with an unprecedented rise in unemployment, reduced hours or lost gig income, unexpected medical bills, and a dramatic drop in revenue for small business owners. A cash payment from the government refunding taxes from last year can give individuals a lifeline at a critical time in our nation’s history.
Speaking of cash payments, Congress did pass a resolution that will send a one-time payment of $1,200 to most individuals earning less than $75,000 per year, with an added $500 per child. That means a married couple making less than $150,000 with two children can expect a $3,400 no-questions-asked cash payment from the government.
Ensure You Get Your Stimulus Payment On Time
Congress has said individuals can expect this payment sometime in April if your Direct Deposit information is up-to-date with the IRS. However, if you haven’t filed your taxes in the last couple years, if your Direct Deposit information has changed since the last time you filed, or if you don’t have Direct Deposit with a bank, you could be waiting months for that money.
The easiest way to remedy this is to simply file your taxes as you normally would and update your information with the IRS. You will get your refund (or again, if you owe money you won’t be penalized) and the government will be able to send your $1,200 on time. Note: Individuals receiving Social Security who may not normally file a tax return will also receive the payment just as they normally would receive their benefits.
If you have more questions on this, or tax questions in general, our Peoples Tax representatives are here to help. We are offering both a secure Virtual Tax ProSM Service on our website and a Drop-Off Tax Service at our central Virginia locations in order to do our part to keep our clients and employees safe and healthy this tax season. If you choose one of these two options, we will continue to communicate with you via email and phone. Peoples Tax is here for you and we are committed to providing you with top-quality service, backed by our Triple Guarantee. Please call us at (804) 204-1040, email us, or visit our website for more information.