How exactly the economy rebounds from being placed on an unprecedented hault remains to be seen but one thing is already apparent. The impact of the coronavirus across not only the United States but around the globe has been enormous. From not only a health and medical perspective, but the inability of millions of workers unable to continue in their respective positions has placed many individuals into situations for which no one could have been prepared.
In an effort to help ease the burden and stress associated with statewide stay at home and shelter in place orders, the federal government initiated a plan for distribution payments to qualifying citizens. Deemed ‘Economic Impact Payments’ by the Internal Revenue Service, this assistance is backed by good intention but many are left wondering if they will have to report the payment as income when filing their 2020 tax return.
Stimulus Check Qualification Amounts
Income limits and filing status, either based on this year’s tax return or last year (if not filed yet) are the biggest factors concerning eligibility. In addition, recipients must also be United States citizens and not claimed on anyone else’s return.
It appears the Economic Impact Payments will not impact tax filings for this calendar year. Since the distribution isn’t being classified as income, then individuals shouldn’t have to worry about having to set aside part of the payment in order to account for tax being withheld once they file a 2020 return next tax season.
Individuals who are expecting a refund from their tax returns this year are still encouraged to file as soon as possible in order to receive additional funds to help during this economic downturn. For everyone, the IRS extended filing dates - typically April 15 - until July 15 for this year.
When Will It Arrive?
Some stimulus checks have already been rolled out and the potential for another round still exists, however, if you haven’t yet received a payment either by direct deposit or mailed check, the IRS has developed a tool for tracking the receipt.
Once you’re ready to file a return, if you need help determining exactly what needs to be submitted when, or are in search of answers to any other tax related questions, let the tax professionals at Bloch Rothman and Associates
assist you today. In addition to providing answers for your questions, they can also take care of multiple other issues dealing with paying or owing back taxes, required audits signaled by either the IRS or an outside agency, or any other personal or corporate wealth management issues. Along with providing a top quality tax service, our group can also complete all types of returns and get answers to any other factors associated with financial issues or concerns you may have. Serving Denver and all of the surrounding areas for 35 years, our firm has an extensive history in helping clients with any and all of their tax issues or dealings with the Internal Revenue Service. If you have questions about your personal, business, estate, or any other filings, don’t hesitate to contact us today. Available for all of your tax needs, there are also a number of bookkeeping and payroll services offered to assist you and your business. We look forward to meeting you and providing the type of service you can rely on whatever your needs may be very soon!