Back Taxes and Coronavirus Stimulus Checks
On March 27, 2020 President Trump signed into law the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”). The CARES Act contains various provisions for small businesses, unemployment, and individual $1,200 stimulus payments from the federal government. Married couples can receive up to $2,400 and for each dependent child, taxpayers will receive an additional $500.
Calculate how much you’ll get from the $1,200 (or more) coronavirus checks:
Who is eligible for the stimulus payments?
Taxpayers who have an adjusted gross income up to $75,000 for individuals and up to $150,000 for married couples filing jointly will receive the full stimulus payment. For taxpayers with income above those amounts, the stimulus payment is reduced by $5 for each $100 above the $75,000/$150,000 limit. Individual taxpayers with income exceeding $99,000 and married filing jointly taxpayers with income exceeding $198,000 with no children will not receive any portion of the stimulus payment.
How does the government know what my income is?
The Internal Revenue Service (IRS) will start by looking at your adjusted gross income stated on your 2019 tax return if it has been filed. If you haven’t filed your 2019 taxes (this is okay since the deadline to file has been extended to July 15th due to coronavirus), the IRS will look next at your 2018 tax return and compute your stimulus payment from the income reported in 2018.
I haven’t filed my 2018 or 2019 taxes. How can I still receive the stimulus payment?
You will need to start by filing your 2018 and 2019 tax returns. The deadline to file your 2019 tax return has been extended to July 15th. However, if you have not filed your 2018 or 2019 income tax return and want to receive the stimulus in 2020 and not 2021, you need to file a 2018 and/or 2019 income tax return ASAP.
What if I haven’t filed my taxes in 3, 5, or 10 years (or ever!)?
You’re not alone! At Adam Shay CPA, PLLC we have an entire department dedicated to performing tax controversy work helping individuals like you that have not filed their tax returns in many years. If this is your situation, please contact us as penalties and interest continue to accrue the longer you wait to file your returns.
I will need to file one or more tax returns. How long are the stimulus payments available?
The stimulus payments will be available to taxpayers throughout the end of 2020. However, we encourage you to contact us today if you need one or more tax returns filed. Especially if it’s been several years since you’ve last filed a tax return as it will take some time to gather up your documents needed. We’re experienced professionals and are here to help! Email us at [email protected] today to get started!