The “Coronavirus Aid, Relief, and Economic Security Act” (Cares Act) includes many tax and financial breaks for both individuals and businesses. We broke down many of the essential elements and how they can assist you and your business during this troubling time. Recovery Rebate - The most talked about provision is the “recovery rebates” for individuals. These rebates are actually credits allowed on taxpayers’ 2020 tax returns that will be paid out in advance by the Treasury. Each eligible individual will receive $1,200 ($2,400 for married couples filing jointly) plus an additional $500 for each qualifying child. These rebates are intended for low- to middle-income individuals, so they a
The IRS has postponed the due date for filing Federal income tax returns and tax payments due on April 15, 2020 until July 15, 2020. Below are the specifics of those postponements. Filing Due Date Postponement: The due date for filing 2019 federal income tax returns due April 15, 2020 is postponed to July 15, 2020. This applies to any 2019 federal income tax returns due April 15, 2020. Thus, it applies to: o 2019 individual 1040 and 1040-SR tax returns o 2019 trust and estate 1041 returns o 2019 calendar year corporation returns o 2019 association returns (Forms 1120-C and 1120-H) CAUTION: This postponement does not include the 1120-S returns which were due on March 16. Nor does it i
On December 20, 2019, President Trump signed into law the Appropriations Act of 2020, which included a number of tax law changes, including retroactively extending certain tax provisions that expired after 2017 or were about to expire, a number of retirement and IRA plan modifications, and other changes that will impact a large portion of U.S. taxpayers as a whole. This article is one of a series of articles dealing with those changes and how they may affect you. If you are looking for cash for a specific purpose, your retirement savings may be a tempting source. However, if you are under age 59½ and plan to withdraw money from a traditional IRA or qualified retirement account, then you wi
