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May 2020

The deadline to file and pay your taxes is July 15.

Remember: You Have Until July 15 to File and Pay Your Taxes

It’s important to keep in mind that the deadline to file and pay your taxes is July 15.

Tax Day was originally scheduled for April 15, but it was moved due to the impact of the coronavirus outbreak. You don’t have to fill any form, take any further action or contact the Internal Revenue Service (IRS) to take advantage of this extension. It has been applied automatically to all taxpayers.

Benefits of Paying and Filing Your Taxes Electronically

If you expect to get a refund, it’s advisable to make sure that your filing and payment are done electronically. This way, you would get your refund within approximately 21 days. On the other hand, taxpayers who file on paper by mail have to wait up to six weeks to get their refunds.

Filing and paying your taxes electronically is a precise, convenient and safe option because all data is protected with modern encryption techniques.

Tax-Filing Extensions

If you need more time to file your taxes beyond July 15, then you can request a tax-filing extension in two ways:

  • Filing form 4868 through their tax professional or through the IRS’ website.
  • Submitting an electronic payment and selecting form 4868 as the payment type.

Remember that an extension to file is not an extension to pay. You still have to pay your taxes by the original deadline

Get Advice From a Reliable Tax Professional

Finally, remember that this extension applies only to federal taxes. Check with your local tax agency or a trusted tax professional to stay up to date regarding deadlines to file and pay state taxes.

It’s important to know this and other updates to navigate the current circumstances. Our knowledgeable, friendly experts at JT Tax Services will help you so you can take advantage of all the relief initiatives you are eligible for.

At JT Tax Services we have the experience, the knowledge and the drive to assist you. With our advice, you can file your taxes with the peace of mind that comes with knowing that you are limiting your liability while staying compliant with federal and state tax regulations.

We are located in Oxnard, California. Contact us by email, telephone or through our social media accounts on FacebookTwitter and LinkedIn to learn more about our services.

3 Reasons Why Your Economic Impact Payment May be Different Than Expected

Economic Impact Payments, the stimulus unrolled by the Internal Revenue Service (IRS), have been successful for the most part. However,  some taxpayers may get a different amount that they expected.

It’s worth remembering that under normal circumstances the amounts are allotted as follows:

  • Up to $1,200 for eligible individuals
  • Up to $2,400 for eligible married couples
  • Up to $500 for each qualifying child for eligible individuals

Read on to discover three factors that may affect your payment and reduce these amounts.

You Haven’t Filed Your 2019 Tax Return

The amount of your Economic Impact Payment is based on your most recent tax return. So, if you haven’t filed a return for 2019, your payment will be based on information from 2018. Alternatively, it’s also possible that the IRS has not finished processing your 2019 return yet.

The Qualifying Child is 17 or Older

In order to qualify for the additional $500, the qualifying child must be under the age of 17 at the end of the year for the tax return on which the IRS bases the payment. If a dependent is 17 or older (including other relatives and college students), they don’t qualify for this additional amount.

Your Payment Was Offset by Past-Due Child Support

This is the only offset that can affect the amount of your payment, since federal law allows creditors to garnish a payment once it’s deposited into a bank account.

What to Do

If you receive an Economic Impact Payment for an amount that is smaller than expected, you can claim the additional credits you qualify for when you file your tax return for 2020.

It’s important to stay up to date with and other initiatives to navigate the current circumstances. Our knowledgeable experts at JT Tax Services will help you so you can take advantage of all the relief initiatives you are eligible for.

At JT Tax Services we have the experience, the knowledge and the drive to assist you. With our advice, you can file your taxes with the peace of mind that comes with knowing that you are limiting your liability while staying compliant with federal and state tax regulations.

We are located in Oxnard, California. Contact us by email, telephone or through our social media accounts on FacebookTwitter and LinkedIn to learn more about our services.

The credit for paid sick and family leave aims to help employers impacted by the coronavirus outbreak.

What Is the Tax Credit for Sick and Family Leave?

The Internal Revenue Service (IRS) has unrolled provisions to offer financial relief to taxpayers who have been affected by the coronavirus outbreak. One of those measures is the Tax Credit for Sick and Family Leave.

This credit applies to leaves taken by employees unable to work because they present coronavirus symptoms, because they have to take care of someone with coronavirus, or because they have to look after children because schools and daycares are closed due to the outbreak.

Employees Unable to Work Because They Have Coronavirus Symptoms

Employees unable to work due to the quarantine or because they have coronavirus symptoms, are entitled to a paid sick leave for up to ten days (up to 80 hours) at the employee’s regular rate of pay, or, if higher, the Federal minimum wage or any applicable State or local minimum wage, up to $511 per day, but no more than $5,110 in total. This includes telework

Employees Who Care For Someone With Coronavirus

There are employees who can’t work because they have to care for someone with coronavirus, or because they have to care for a child because the child’s school or day care is closed due to the coronavirus. In those cases, the employee is entitled to paid sick leave for up to two weeks (up to 80 hours) at two-thirds the employee’s regular rate of pay or, if higher, the Federal minimum wage or any applicable State or local minimum wage, up to $200 per day, but no more than $2,000 in total.

Employees Who Must Take Care of a Child Due to Daycare or School Closure

This tax credit also covers employees unable to work because they need to care for children whose school or place of care is closed. Those workers are also entitled to paid family and medical leave equal to two-thirds of the employee’s regular pay, up to $200 per day and $10,000 in total. Up to ten weeks of qualifying leave can be counted towards the family leave credit.

How Much Is the Credit Worth?

Eligible employers are entitled to receive a credit in the full amount of the required sick leave and family leave, plus related health plan expenses and the employer’s share of Medicare tax on the leave, for the period of April 1, 2020, through December 31, 2020.  The refundable credit is applied against certain employment taxes on wages paid to all employees. Eligible employers can reduce federal employment tax deposits in anticipation of the credit.

Two of Three New Tax Credits For Employers

The Paid Sick and Family Leave tax credits are two of three new tax credits geared to help employers. The other one is the Employee Retention Credit that we discussed previously here.

It’s important to know these and other measures to navigate the current circumstances. Our knowledgeable experts at JT Tax Services will help you so you can take advantage of all the relief initiatives you are eligible for.

We are located in Oxnard, California. Contact us by email, telephone or through our social media accounts on FacebookTwitter and LinkedIn to learn more about our services.

This Is Why You Get “Status Not Available” on Your Economic Impact Payment

The IRS is sending Economic Impact Payments to taxpayers impacted by the coronavirus outbreak. However, the process has not been completely smooth. When some people get online to verify the status of their payment, they get the message “Status Not Available.”

This message is displayed by the “Get My Payment” online tool of the IRS for several reasons, as you will see below.

You May Not Be Eligible for an Economic Impact Payment

If you are not eligible for an Economic Impact Payment, then you will get the “Status Not Available” message. Keep in mind that eligibility for Economic Impact Payments depends on your Adjusted Gross Income (AGI). You are eligible for an Economic Impact Payment if your AGI is up to:

  • $75,000 for individuals
  • $112,500 for head of household filers
  • $150,000 for married couples filing joint returns

If your AGI exceeds these limits, your are still eligible for a reduced Economic Impact Payment if your AGI is between:

  • $75,000 and $99,000 if your filing status was single or married filing separately
  • 112,500 and $136,500 for head of household
  • $150,000 and $198,000 if your filing status was married filing jointly

Users Who File a Tax Return

If you are eligible and filed tax returns, but still get the “Status Not Available” message, then the IRS hasn’t finished processing your 2019 tax return. It’s also possible that the online application doesn’t have your data for other reason, but that may be solved soon because the IRS updates information on the website every day.

Remember that the information on the online tool is updated once a day, usually overnight. Therefore, the IRS encourages users to check the status of their payment only once every 24 hours to avoid excessive traffic on the website and allow other people to check their payments as well.

Users Who Don’t Usually File a Tax Return

If you receive SSI or VA benefits, you get the “Status Not Available Message” because your information hasn’t been loaded yet onto the system. On the other hand, if you used the Non-Filers: Enter Payment Info Here feature on the IRS website to provide your information, then your entry hasn’t been processed yet.

It’s important to learn more about this and other initiatives to navigate the current, unprecedented circumstances. Our knowledgeable experts at JT Tax Services will help you so you can take advantage of all the relief initiatives you are eligible for.

At JT Tax Services we have the experience, the knowledge and the drive to assist you. With our advice, you can file your taxes with the peace of mind that comes with knowing that you are limiting your liability while staying compliant with federal and state tax regulations.

We are located in Oxnard, California. Contact us by email, telephone or through our social media accounts on FacebookTwitter and LinkedIn to learn more about our services.