An Excerpt From My Accountant
-
Nothing specific, just general info. Most you may know.
- As the coronavirus (COVID-19) continues to affect local communities and global economies,
- you may have concerns about your financial well-being. Or you may be wondering about how
- recently passed legislation impacts you. We’re providing a high-level summary of some of the
- key provisions impacting individuals and recommend discussing your particular circumstances
- with us in more detail.
- Relief available
- There are several recently enacted tax changes and new or expanded benefits that might be
- helpful to you.
- Income tax provisions: The IRS extended the April 15, 2020 federal income tax filing and payment deadline to July
- 15, 2020. However, we continue to work on filing returns as soon as possible. First quarter estimated tax payments usually due April 15, 2020 are now extended to July
- 15, 2020. Louisiana Department of Revenue has extended the May 15, 2020 state income tax filing
- and payment deadline to July 15, 2020. First quarter estimated tax payment remains April 15, 2020.
- Recovery rebates: Payments to individuals of $1,200 ($2,400 for joint filers) plus $500 for each qualifying child
- are expected to be delivered around mid-April. The recovery rebate begins to phase out for taxpayers with adjusted gross income (AGI)
- above $150,000 for joint filers, $112,500 for heads of households and $75,000 for other
- individuals. If you’d like to estimate the amount you’ll receive, visit the CARES Act stimulus
- calculator at aicpa.org/covid19tax.
- The payment is not taxable.
- Retirement accounts: Through the end of the year, individuals who are under 59 ½ years old can take up to
- $100,000 in coronavirus-related distributions from retirement plans without the usual 10%
- penalty for early distributions. The distributions may be repaid within three years and any
- resulting income inclusion can be taken over three years. If you were over 70 ½ at Dec. 31, 2019 you won’t have to take required minimum
- distributions (RMD) in 2020. If your retirement assets have taken a hit, not having to take an
- RMD may allow those assets to recover some value before you liquidate them.
- Student loans: If you have a federally-held student loan, your payments will be suspended through Sept.
- 30, 2020 and interest won’t accrue during this period. Note that this relief does not apply to
- private student loans.
- Other benefits: Other benefits are available including expanded unemployment, emergency paid sick and
- family leave benefits (with some limitations and exceptions). Unemployment benefits are
- extended to self-employed and part-time workers.
