Economic Impact Payments: Q&A’s on what you need to know

Check IRS.gov for the latest information: No action needed by most people at this time

IR-2020-61, March 30, 2020

WASHINGTON — The Treasury Department and the Internal Revenue Service today announced that distribution of economic impact payments will begin in the next three weeks and will be distributed automatically, with no action required for most people. However, some seniors and others who typically do not file returns will need to submit a simple tax return to receive the stimulus payment.

Who is eligible for the economic impact payment?

Tax filers with adjusted gross income up to $75,000 for individuals and up to $150,000 for married couples filing joint returns will receive the full payment. For filers with income above those amounts, the payment amount is reduced by $5 for each $100 above the $75,000/$150,000 thresholds. Single filers with income exceeding $99,000 and $198,000 for joint filers with no children are not eligible.

Eligible taxpayers who filed tax returns for either 2019 or 2018 will automatically receive an economic impact payment of up to $1,200 for individuals or $2,400 for married couples. Parents also receive $500 for each qualifying child.

How will the IRS know where to send my payment?

The vast majority of people do not need to take any action. The IRS will calculate and automatically send the economic impact payment to those eligible.

For people who have already filed their 2019 tax returns, the IRS will use this information to calculate the payment amount. For those who have not yet filed their return for 2019, the IRS will use information from their 2018 tax filing to calculate the payment. The economic impact payment will be deposited directly into the same banking account reflected on the return filed.

The IRS does not have my direct deposit information. What can I do?

In the coming weeks, Treasury plans to develop a web-based portal for individuals to provide their banking information to the IRS online, so that individuals can receive payments immediately as opposed to checks in the mail.

I am not typically required to file a tax return. Can I still receive my payment?

Yes. People who typically do not file a tax return will need to file a simple tax return to receive an economic impact payment. Low-income taxpayers, senior citizens, Social Security recipients, some veterans and individuals with disabilities who are otherwise not required to file a tax return will not owe tax.

How can I file the tax return needed to receive my economic impact payment?

IRS.gov/coronavirus will soon provide information instructing people in these groups on how to file a 2019 tax return with simple, but necessary, information including their filing status, number of dependents and direct deposit bank account information.

I have not filed my tax return for 2018 or 2019. Can I still receive an economic impact payment?

Yes. The IRS urges anyone with a tax filing obligation who has not yet filed a tax return for 2018 or 2019 to file as soon as they can to receive an economic impact payment. Taxpayers should include direct deposit banking information on the return.

I need to file a tax return. How long are the economic impact payments available?

For those concerned about visiting a tax professional or local community organization in person to get help with a tax return, these economic impact payments will be available throughout the rest of 2020.

Where can I get more information?

The IRS will post all key information on IRS.gov/coronavirus as soon as it becomes available.

The Coronavirus Aid, Response, and Economic Security Act
(CARES Act)

As of March 27, 2020, the U.S. Senate and the U.S. House of Representatives have passed the Coronavirus Aid, Relief, and Economic Security Act (CARES Act). U.S. President Donald Trump is expected to sign it into law shortly. The CARES Act is the third installment in a series of federal legislative initiatives enacted in response to the 2019 novel coronavirus (COVID-19) pandemic and is intended, in part, to provide financial relief to businesses.

In addition to providing a large cash infusion to hospitals and broader access to COVID-19 testing to individuals, the CARES Act aims to boost the economy with over $2 trillion in relief, ranging from individual rebates and small business loans to increased unemployment benefits and a wide variety of tax breaks.

Additional Information can be found on the following sites:

https://www.gklaw.com/NewsUpdatesPressReleases/Financial-relief-for-businesses-under-the-CARES-Act-and-related-Federal-Reserve-initiatives.htm?utm_source=vuture&utm_medium=email&utm_campaign=coronavirus%2003.27.20

https://www.shrm.org/ResourcesAndTools/legal-and-compliance/employment-law/Pages/House-Passes-Coronavirus-Relief-Bill-Providing-Aid-to-Employers-and-Workers.aspx?utm_source=marketo&utm_medium=email&utm_campaign=editorial~HR%20Daily~NL_2020_3-27_Breaking_News-CoronavirusBill&linktext=READ-NOW&mkt_tok=eyJpIjoiWWpBNE5qUTBNMlUwWTJZMCIsInQiOiJsXC9TNko2UHJvM0FPWHpUSEdMaU1iUkgxYmR0NmpFaTd2Nk1UejdCWGEwYnB6TG8xU00yMWlrYjF5MUdiWW0rOGJoVUNmUXY2ZW1zMnNFV0tKVlhST0FwS0VkZnZoQmFEUWNLeUpuSmVYaG40d3M1VmNDMVlCdHpoNFFUTUdtNmIifQ%3D%3D

https://www.forbes.com/sites/anthonynitti/2020/03/25/congress-reaches-agreement-on-a-coronavirus-relief-package-tax-aspects-of-the-cares-act/#19c2ac2a5f99

Gov. Pritzker announces more that $90 million in emergency assistance available for small businesses

Illinois businesses will be able to apply to these programs on the Department of Commerce and Economic Opportunity (DCEO) website: https://www2.illinois.gov/dceo/SmallBizAssistance/Pages/EmergencySBAIntiatives.aspx

Illinois Income Tax Filing & Payment Extension

The filing deadline for Illinois income tax returns has been extended from April 15th, 2020, to July 15th,2020. In addition, the IDOR is still encouraging taxpayers expecting a refund to file as soon as they can. The link below will direct you to the Illinois Department of Revenue Informational Bulletin for additional information.

https://www2.illinois.gov/rev/research/publications/bulletins/Documents/2020/FY2020-24.pdf

IRS Provides 90-Day Federal Income Tax Payment Extension

 The IRS has announced that the due date for making federal income tax payments has been postponed from 4/15/20 to 7/15/20. For consolidated groups and stand-alone C corporations, up to $10 million of tax payments can be deferred. For all other taxpayers, up to $1 million can be deferred, regardless of filing status. The relief only applies to federal income tax payments (including self-employment tax payments) due on 4/15/20 for the 2019 tax year, and federal estimated income tax payments due on 4/15/20 for the 2020 tax year. Payments made within the 90-day deferral period will automatically be exempt from interest and penalties. The IRS has not provided an extension for the payment or deposit of any other type of federal tax, or for the filing of any tax return or information return. Notice 2020-17 .

IRS Provides 90-Day Extensions for Federal Tax Filing

The IRS has announced that the due date for filing federal income tax returns has been automatically extended from 4/15/20 to 7/15/20. Taxpayers also can defer federal income tax payments due on 4/15/20 to 7/15/20 without penalties and interest regardless of the amount owed. This deferment applies to all taxpayers, including individuals, trusts and estates, corporations, and other non-corporate tax filers, as well as those who pay self-employment tax. Taxpayers do not need to file additional forms or call the IRS to qualify for this automatic federal tax filing and payment relief. Individuals who need additional time to file beyond the 7/15/20 deadline can request an extension by filing Form 4868. Businesses that need additional time must file Form 7004 . The IRS urges taxpayers who are due a refund to file as soon as possible. Notice 2020-17, which only provided a 90-day tax payment extension, has been superseded. Notice 2020-18 and News Release IR 2020-58.

Below is a snapshot of significant changes affecting your income tax filings:

  • On March 20th, the US Treasury announced that the tax filing deadline has been moved this year from April 15th to July 15th.  Along with this change, an extension request is not required provided that income tax returns are filed by this date.  Should additional time be needed, however, an extension request would continue to be available to allow for timely filing by October 15th
  • Payment of balances due on 2019 income taxes are also allowed an extension until July 15th.  No further steps are necessary to receive this extension of time to pay.  However, there is no extension of time to pay beyond July 15th.  Payments remitted after this date for 2019 income taxes will be considered late and penalties and interest will be assessed. 
  • The US Treasury has also announced that first quarter estimated tax payments, which are normally due April 15th, are also extended until July 15th.  No further steps are necessary to receive this extension of time to pay. 
  • The second quarter estimated tax payment is generally due June 15th.  No extension has been granted for this payment.
  • If your 2019 income tax returns have been previously prepared, and if automatic payment arrangements were established to remit payment on April 15th, it is worth noting that the Internal Revenue Service will not modify this payment date on your behalf.  If you require changes to be made, the only option available is to cancel the payment and choose an alternate payment method.  To do so, you must call IRS e-file Payment Services at (888)353-4537 no later than 11:59 pm E.T. two business days prior to the scheduled payment date.  This will apply to both 2019 income tax payments as well as to 2020 estimated tax payments.  Should you make a change and need a payment voucher to remit the payment, please contact our offices and we can print one for you to utilize. 
  • Income tax returns with refunds will continue to be issued payment on the pre-arranged payment cycle established by the Internal Revenue Service.  We expect no delays to those refunds at this time.
  • Wisconsin has also announced that income tax returns and the corresponding payments will now be due on July 15th.  Like the Federal change, there is no requirement to file an extension request in order to receive the additional time to file and pay. 
  • Illinois income tax returns have not been extended as of today.  We anticipate further changes will be forthcoming with respect to the tax filing deadlines and will provide updates as information becomes available.  For the time being, April 15th remains the due date for those individual income tax returns.
  • Similarly, Illinois has not extended payment deadlines for 2019 income taxes and 2020 estimated tax payments.
  • We can apprise you of other state income tax filing requirements on an individual basis should you have filing requirements in any other states.   

Family First Coronavirus Response Act Information from the IRS

Treasury, IRS and Labor announce plan to implement Coronavirus-related paid leave for workers and tax credits for small and midsize businesses to swiftly recover the cost of providing Coronavirus-related

WASHINGTON – Today the U.S. Treasury Department, Internal Revenue Service (IRS), and the U.S. Department of Labor (Labor) announced that small and midsize employers can begin taking advantage of two new refundable payroll tax credits, designed to immediately and fully reimburse them, dollar-for-dollar, for the cost of providing Coronavirus-related leave to their employees. This relief to employees and small and midsize businesses is provided under the Families First Coronavirus Response Act (Act), signed by President Trump on March 18, 2020. The Act will help the United States combat and defeat COVID-19 by giving all American businesses with fewer than 500 employees funds to provide employees with paid leave, either for the employee’s own health needs or to care for family members. The legislation will enable employers to keep their workers on their payrolls, while at the same time ensuring that workers are not forced to choose between their paychecks and the public health measures needed to combat the virus For additional information, please click on the link below:

https://www.irs.gov/newsroom/treasury-irs-and-labor-announce-plan-to-implement-coronavirus-related-paid-leave-for-workers-and-tax-credits-for-small-and-midsize-businesses-to-swiftly-recover-the-cost-of-providing-coronavirus