As we near the original tax filing deadline for the 2019 tax year, this topic is on our minds. For small business owners & individual tax filers, there are a lot of questions right now! Our favorite tax professionals, Tammy Wendland and Deborah Winchel with Palm Tree Consulting are answering the hottest questions circling around right now!

Due to the coronavirus pandemic, the IRS and 38 of the 50 states – including Kansas and Missouri – have extended the 2019 tax filing and payment deadline to July 15, 2020. If, however, you believe you will be getting a refund, don’t wait – FILE NOW! You may need these funds during the shelter in place order or even shortly after it is lifted. And if you think you’ll owe, it’s also a good idea to file now so you know exactly how much you will have to pay, and then you can better plan your spending.

Many of us are aware that the Treasury Department and Internal Revenue Service will be distributing economic impact payments to eligible taxpayers. The IRS website states:

 “Tax filers with adjusted gross income up to 475,000 for individuals and up to $150,000 for married couples filing joint returns will receive the full payment. For filers with income above those amounts, the payment amount is reduced by $5 for each $100 above the $75,000/$150,000 thresholds. Single filers with income exceeding $99,000 and $198,000 for joint filers with no children are not eligible. Eligible taxpayers who filed tax returns for either 2019 or 2018 automatically receive an economic impact payment of up to $1200 for individuals or $2400 for married couples. Parents also receive $500 for each qualifying child.”

Something to keep in mind is that you have to have filed a tax return for 2019 or 2018. If you haven’t filed your return for either of those years, you’ll need to do that first in order to receive the payment. The IRS will directly deposit the payment into the same account listed on your tax return. If the IRS doesn’t have your account information – this most likely applies to those individuals who typically owe after filing – the Treasury is in the process of developing a web-based portal where you can provide your banking information and receive payments immediately. Otherwise, they will send your payment through the mail. This entire process may take up to 5 months. There are some considerations for individuals receiving benefits from the Social Security Administration, and the SSA will provide the IRS direct deposit info for anyone on SSA, Disability, railroad retirement, etc. For more information on this and other IRS related issues, visit https://www.irs.gov/newsroom/economic-impact-payments-what-you-need-to-know:

Finally, because of the times we are living in, our industry recognizes that tax identity fraud will be on the rise. Make sure you file before someone else uses your information to file a fraudulent return.