The IRS rolled out deadline extensions and new programs to help individuals and businesses navigate the COVID-19 pandemic. A recap of these announcements is included here for your review. Also in this month’s edition is an interesting tax quiz to see if you can guess which states have the highest taxes! All this plus an interesting way to keep your spare change digitally. These are challenging times. Rest assured as things change on the tax landscape, you will be among the first to know. Please stay safe.
The April 15 federal income tax filing due date has been moved to July 15, the U.S. Treasury Department and IRS recently announced. Here is what you need to know:
While the federal government grants you an additional 3 months to file and pay your 2019 taxes, you may wish to still file your tax return by April 15. Here are some thoughts on different situations.
You anticipate a refund. If you are expecting a refund, file your tax return immediately. A refund right now can come in handy.
An extension might still make sense. This change automatically extends everyone's due date to July 15. But you may still wish to file a tax extension to move your tax return date to October 15, 2020. While payments are now due on or before July 15, a traditional extension still buys you more time to file your tax return.
Watch for state announcements. States are rolling out their own guidelines for extensions. Since most states require copies of federal tax return information, be prepared to still file by April 15. Remember, even if you wait until later to file your federal return and pay your tax, you may have to file your state and/or local return sooner.
What if I get a penalty anyway? Affected taxpayers subject to penalties and additional tax despite this relief provision may seek a waiver.
Rest assured, as the rules and deadlines change, updates will be provided. In the meantime, please stay safe during this challenging time.
Note: This is a fast changing topic. These rules are as of March 24, 2020.
Families First Coronavirus Response Act provides worker benefits
The Families First Coronavirus Response Act is a new law passed last week that offers COVID-19 assistance for both employees and employers.
This new law provides businesses with fewer than 500 employees the funds to provide employees with paid leave, either for the employee’s own health needs or to care for family members.
Here are the details of the new law’s benefits:
What it means for you
Take this trivia quiz and test your state tax knowledge!
Here’s a quiz to test your state tax IQ and give you some fun facts about the taxes paid by friends in other states.
A clever new way to save...
With close to 85% of purchases made with credit or debit cards, many people have forgotten the satisfying clinking sound of tossing a penny, nickel, dime or quarter into a glass jar of spare change. But all that is starting to change!
Clever new savings ideas
In today's world of smartphones, several apps have digitized yesterday's jar of coins by sweeping electronic spare change into a digital jar to increase savings balances or pay down debt. For example, if you make a purchase for $1.89, the app rounds up your purchase to $2.00 and transfers the extra 11 cents into the app's account. Here are three of the more popular apps and how they work.
Popular digital savings players
The area of digital money saving applications is rapidly evolving. Before using any of these apps, it is important to understand their costs and risks involved, compared to other ways of saving money.