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It's Stimulus Time America!

Monday, March 30, 2020

 

On the heels of the treasury department extending the tax filing deadline from April 15 to July 15, a key piece of legislation was also passed that may impact you as a taxpayer. Many would say a glimmer of light during a near nationwide COVID-19 shutdown, record stock market lows, and a pending case of cabin fever. Lawmakers look action to spark the economy and give some relief to average Americans and ease the losses faced by small businesses.

The president signed a $2 trillion Coronavirus Stimulus Bill into law which was quickly passed by both the senate and house within a day. This measure is the largest aid package in US history, Congress and fast-tracked the measure considering that hospitals are overwhelmed, and the economy has basically ground to a halt due to the accelerating spread of Coronavirus. The following table (based on information published by CNN) outlines how the stimulus check will be distributed based on income


Additionally, families with children will receive an additional $500 per child under 16-years-old. Unemployment assistance is also part of the stimulus package and will provide an additional $600 per week added to your state’s payments for up to 4 months.

Will everyone get a stimulus check? 

 Unfortunately, no. According to the IRS, the eligibility for receiving a stimulus check is based on your last two year’s tax returns. So, if you've filed your taxes in 2018, those returns will be considered. If you have not filed your 2018 tax returns, that could impact the mailing of your stimulus check. The IRS warns that if you have not filed your taxes for 2016, you are still facing an April 15 due date for that filing year. The extension to July 15 only applies to the filing of 2019 tax returns. If you have not filed your tax returns since before 2017, you will likely not be eligible to receive a stimulus check and still incur late fees if you file after April 15, 2020.

Another restriction that will impact stimulus checks is back Child Support. If an individual currently has back child support, their stimulus check could be reduced or eliminated at the discretion of their filing state.

How will the stimulus check impact my tax returns?

 The stimulus package checks will not impact your tax returns. Stimulus checks will be issued in addition to whatever income tax returns you are already eligible to receive. Aside from a possible delay, if you are already owed a refund and you have properly filed, you will receive the stimulus check in addition to your regular refund.  

Is it too late to qualify for the stimulus package?

While no official deadline other than the stipulation of having filed 2018 returns, the IRS recommends filing your 2018 taxes as soon as possible to make sure you are counted.

At Alliance Tax Solutions, we’re committed to keeping our clients and website visitors informed about all issues that could potentially impact their taxes. If you have any questions, don’t hesitate to contact us at (404) 592-1227 or visit our website at www.alliancetaxsolutions.com.

 

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