Up to 50% or more of a taxpayer’s Social Security benefits may be taxable, depending on annual income. If you’d like to find out more about the details of the taxable portion of your benefits, please see this IRS brief.
Please know N&Co always takes these formulas into consideration when calculating your taxes, but we wanted to share the information with you as well.
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According to the IRS, qualified individuals affected by COVID-19 may be able to withdraw up to $100,000 from their eligible retirement plans, including IRAs, between January 1 and December 30, 2020.
These coronavirus-related distributions aren’t subject to the 10% additional tax that generally applies to distributions made before reaching age 59 and a half, but they are still subject to regular tax. Taxpayers can include coronavirus-related distributions as income on tax returns over a three-year period. They must repay the distribution to a plan or IRA within three years.
Some plans may have relaxed rules on plan loan amounts and repayment terms. […] Read more
If you received an Economic Impact Payment (aka: federal stimulus check) in error, you should return the payment as described below:
If the payment was a paper check:
Write “Void” in the endorsement section on the back of the check.
Mail the voided Treasury check immediately to the appropriate IRS location listed below.
Don’t staple, bend, or paper clip the check.
Include a note stating the reason for returning the check.
If the payment was a paper check and you have cashed it, or if the payment was a direct deposit:
Submit a personal check, money order, etc. immediately to the appropriate IRS location listed below.
Write on […] Read more
Note: each county appears to have their own new due date!
Belmont (from July 20, 2020 to August 21, 2020)
Cuyahoga (from July 20, 2020 to August 13, 2020)
Delaware (from July 20, 2020 to August 20, 2020)
Franklin (from July 20, 2020 to August 5, 2020)
Geauga (from July 20, 2020 to July 22, 2020)
Montgomery (from July 20, 2020 to August 14, 2020)
Monroe (from July 20, 2020 to August 19, 2020)
Paulding (from July 20, 2020 to August 17, 2020)
Washington (from July 20, 2020 to August 14, 2020)
Additional updates about Ohio’s COVID-19 relief efforts can be found here.
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2020 is a unique year as far as required minimum distributions (RMDs) are concerned. The CARES Act has suspended the requirement for most 2020 IRA distributions–including some 2019 distributions that you might have personally elected to delay until 2020. For our retirees who must take annual withdrawals from their retirement accounts, here is a huge tax saving opportunity for 2020!
Please see this article from Forbes for more details about these suspended RMDs.
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Here is a recap of the qualifiers and a helpful flow chart with useful links for more information about getting your Economic Impact Payment (EIP). The IRS also warns tax filers to beware of phishing scams related to your EIP. […] Read more
Late last week the federal government extended the due date for the 2020 second quarter estimated tax payment from June 15 to July 15. This means that individual tax returns, as well as individual first quarter and second quarter estimated tax payments are now all due on July 15.
Additionally, trusts, estates, corporations, and other non-corporate tax filers with filing or payment due dates between April 1 and before July 15 are now also extended to July 15.
When paying individual taxes and estimates, taxpayers have the option to send the IRS a check, or payments also can be made electronically through […] Read more
At Nichols & Company, we know many of you are assisting elderly parents or grandparents right now. In an effort to support you, we wanted to share that the IRS has launched a new tool to assist non-filers in registering their current information for their Economic Impact Payment.
The new tool, created in conjunction with FreeFile Alliance, is designed for those who were not required to file a 2018 or 2019 tax return. The Non-Filers: Enter Payment Info tool allows these non-filers to supply the IRS with their current address, number of dependents and direct deposit information.
Distribution of Economic Impact Payments to […] Read more
To help ease the financial effects of the COVID-19 pandemic, the federal government is planning to send stimulus checks to all taxpayers in the coming weeks.
For your planning purposes, we wanted to share with you their guidelines for determining eligibility. It is important to note that children 17 and older who are claimed by their parents or elderly adults claimed as dependents on a tax return are not eligible for the $500 payments.
Who Qualifies?
Individuals with an adjusted gross income (AGI) up to $75,000 or married couples filing jointly with an AGI up to $150,000 will receive the full payment of […] Read more
2019 Personal tax returns do not need to be filed until 7/15/20.
2019 taxes due, as well as 1st quarter estimated tax payments, are not due until 7/15/20.
NOTE: 2nd quarter estimated tax payments are still currently due on 6/15/20!
2019 IRA & HSA payments can be made as late as 7/15/20.
The IRS has added a special coronavirus page to its site if you need more information: https://www.irs.gov/coronavirus
For those in Ohio, the Ohio legislature will be meeting today to consider changing the Ohio tax filing date. It currently remains at 4/15/20.
For more CPA “insider information,” you are welcome to check out this article from WesternCPE.com.
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