Americans have April 15th as the tax deadline imprinted in their brains from the time they first file a return. But this year, not only has the Federal, and many states’, deadline been extended due to Covid-19, but the passage of the Stimulus Bill is complicating when the right time to file may be for you.
The Stimulus Bill passed on Friday, March 27th, 2020, includes a direct payment of up to $1200 for individuals, or $2400 for married couples. What we know right now is that the amounts the Federal government will use to determine whether you qualify for the stimulus checks will be based on your most recently filed tax return, whether that be your 2019 or 2018.
If your income increased from 2018 to 2019 enough that you might now not qualify for the payment, it makes sense to delay filing your 2019 return until the payments have already been issued. The stimulus check amounts start to phase-out at $75,000 AGI for singles, and $150,000 for Married Filing Jointly couples.
The federal filing and payment deadline has now been extended to July 15th; many states have followed suit. While many of our clients who might have refunds coming are anxious to get their returns filed quickly, we are carefully considering whether waiting might help our client’s bottom-line overall.
03/30/2020
By: Katy Swerdlick, CPA, Quality Back Office
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