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Some people will receive their Economic Impact Payments by debit card.

The IRS Will Deliver Some Economic Impact Payments by Debit Card

The Internal Revenue Service will deliver the Economic Impact Payments of nearly four million people by by prepaid debit card instead of paper check.

According to the official website for the cards, this method will be used to deliver the payments of taxpayers whose bank details the IRS doesn’t have.

This Is What Your Debit Card Will Allow You to Do

If you receive your Economic Impact Payment by prepaid card, you will get some benefits that include:

  • Making purchases online or at any retail location where Visa payments are accepted
  • Getting cash from in-network ATMs
  • Transferring funds to your personal bank account.
  • Checking you balance card by mobile app or by phone.
  • Enjoying the same consumer protections available to traditional bank account owners, such as protection against fraud and loss.

The prepaid cards arrive in a plain envelope from Money Network Card Holder Services. The Visa name appears on the front of the card, while the back of the card has the name of the Issuing bank, MetaBank®, N.A. Information included with the card specifies that the card is an Economic Impact Payment.

Users who receive their Economic Impact Payments by prepaid card will have to activate their cards calling the number 1.800.240.8100 and validating their identity providing at least their name, address and social security number.

As of this moment you cannot request the IRS to send Economic Impact Payment as a debit card. For more information about the Economic Impact Payment prepaid cards, visit www.eipcard.com.

Get Advice From the Experts

As you can see, the IRS’ response to COVID-19 changes constantly, so it’s important to stay updated. You can check the IRS website or this blog. It’s also a good idea to get advice from a reliable, experienced source.

Our knowledgeable tax experts at JT Tax Services will help you so you can take advantage of all the government 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 Facebook, Twitter and LinkedIn to learn more about our services.

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 Facebook, Twitter 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 Facebook, Twitter 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 Facebook, Twitter 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 Facebook, Twitter and LinkedIn to learn more about our services.

Employee Retention Credit: An Essential Guide

The Covid-19 outbreak has disrupted economic activities all over the country. Therefore, the Internal Revenue Service (IRS) has implemented measures to offer financial relief to businesses.

One of those provisions is the Employee Retention Credit (ERC). This initiative aims to help small businesses keep their employees on their payroll.

What Businesses Qualify for the Employee Retention Credit?

The credit is geared towards businesses that have been impacted by the coronavirus outbreak. The qualifying businesses fall into two basic categories:

  • The business is in total or partial suspension by government order due to the coronavirus outbreak during the calendar quarter.
  • The employer’s gross receipts are below 50% of the comparable quarter in 2019.

It’s important to note that once your receipts go above 80% of a comparable quarter in 2019, you no longer qualify for the credit.

How Much Is the Employee Retention Credit Worth?

The amount of the Employee Retention Credit is equal to 50% of qualifying wages paid up to $10,000. Wages paid after March 12, 2020, and before January 1, 2021 are eligible. The wages considered include as well as portion of the cost of employer provided health care.

What Wages Qualify for the ERC?

The qualifying wages are determined considering the size of the business.

  • If the employer had 100 employees or fewer on average in 2019, the credit is based on wages paid to all employees, regardless if they worked or not.
  • For employers with more than 100 employees on average in 2019, the credit applies only to wages paid to workers who did not work during the calendar quarter.

How Would I Receive the ERC?

Employers can be immediately reimbursed for the credit by reducing their required deposits of payroll taxes that have been withheld from employees’ taxes by the amount of the credit.

If your tax deposits are not enough to cover the credit, then you may receive an advance payment by submitting form 7200 to the IRS

It’s important to know this 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 Facebook, Twitter and LinkedIn to learn more about our services.

The 4 Most Frequently Asked Questions about Economic Impact Payments

Economic Impact Payments are already being sent to taxpayers all over the United States, but questions regarding this stimulus still abound.

In this post we’ll answer the most frequently asked questions regarding Economic Impact Payments, so you can determine whether you are eligible, how much you could get, and how to check the status of your payment.

How Much Would I Get?

Individual taxpayers eligible for Economic Impact Payments get $1,200, while couples filing jointly receive 2,400. Additionally, you can receive $500 extra for every qualifying child you claimed on your tax return.

Do I Qualify for an Economic Impact Payment?

People qualify to Economic Impact Payments based upon their Adjusted Gross Income (AGI). You qualify to 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 ranges, don’t worry. You can still get a reduced Economic Impact Payment if you have an AGI 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

In this case, the amount of the reduced payment will be based upon your specific AGI.

What if I Receive Social Security or Other Benefits?

You don’t have to make a filing to get your Economic Impact Payment if you receive Social Security, railroad retirement, Social Security Disability Insurance (SSDI and SSI) or veteran’s benefits. In that case, you’ll receive your payment the same way you normally receive your benefits.

On the other hand, People who don’t normally file, such as low-income or no income taxpayers, can use Non-Filers: Enter Payment Info tool to give IRS  basic information to get their Economic Impact Payments.

How Can I Check the Status of My Payment?

The IRS launched recently the Get My Payment Tool. The website will allow you to check the status of your Economic Impact Payment. The information is updated every 24 hours, usually overnight, so use the tool only once a day to allow others to check the status of their payment as well.

It’s important to know this and other initiatives to navigate the current circumstances. Our friendly and 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 Facebook, Twitter and LinkedIn to learn more about our services.

Now You Can Check Your Economic Impact Payment Online

The first round of Economic Impact Payments is about to be sent to taxpayers, who now have an online tool available to track the status of their stimulus.

The Internal Revenue Service (IRS) has unveiled the website Check My Payment to allow taxpayers to check their Economic Impact Payment or communicate their direct deposit information to the IRS, in case the agency doesn’t have it.

The IRS sends Economic Impact Payments using information included in past tax filings. However, if you haven’t filed your taxes for 2019 or 2018, you can use this website to communicate your direct deposit information. In addition, you can use it if you belong to a category that doesn’t require you to file taxes.

It’s advisable to use the Check My Payment website only once a day. This way you will avoid excessive traffic so other users can track their payment as well.

What Are Economic Impact Payments?

Economic Impact Payments are a provision rolled out by the IRS and the Treasury Department. Above all, the aim is to offer financial relief to taxpayers affected by the coronavirus outbreak.

If you qualify for an Economic Impact Payment these are the amounts you could receive.

  • 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

Taxpayers qualify to Economic Impact Payments based upon their Adjusted Gross Income, as follows:

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

The government’s response to COVID-19 is fluid. Therefore, the relief initiatives in force may change to better adjust them to future circumstances. Check constantly this blog and the IRS’ website to stay up-to-date as the situation evolves.

It’s important to know this 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 Facebook, Twitter and LinkedIn to learn more about our services.

 

Don’t Fall for Coronavirus Tax Scams

The world is going through unprecedented circumstances due to the outbreak of coronavirus. However, scammers and fraudsters are still trying to take advantage of people, tricking them into sharing their personal information.

Scammers target retirees in particular. The fraudsters send false communications related to Economic Impact Payments announced by the Internal Revenue Service (IRS) and the Treasury.

The fraudulent strategy being used is called phishing. This consists in using text, phone calls or social media to send false messages supposedly from trusted institutions to deceive the unknowing recipients.

How to Identify Phising Attempts

  • The term Economic Impact Payment is not used in the message. Instead, they use the terms “Stimulus Check” or “Stimulus Payment.”
  • A fake check with an odd amount is mailed, and you are ordered to call a number or verify information online to cash it
  • You’re asked to check your Economic Impact Payment to someone else.
  • You’re asked by phone, email or social media to verify your information in order to receive or speed up your payment.

The Truth About Economic Impact Payments

These payments are government stimulus to help taxpayers who have been negatively affected by the outbreak of coronavirus.

Those eligible are tax filers with adjusted gross income up to $75,000 for individuals or up to $150,000 for couples filing jointly. If your income is above these amounts, the payment will be reduced by $5 for each $100 above the threshold.

Single filers with adjusted gross income of more than $99,000 or $198,000 for joint filers are not eligible for Economic Impact Payments.

The IRS will deposit your payment directly using the details included in your 2019 tax return (or 2018 if you haven’t filed yet). If they don’t have your direct deposit information, don’t worry: An official website will be online within a few weeks, so you can safely communicate this information.

What to Do?

If you believe you have suffered a phishing or fraud attempt, don’t engage the sender of the message. Report the attempt to the IRS (phishing@irs.gov)

The government’s response to the outbreak of coronavirus is fluid, and fraudsters adapt their strategies accordingly. Check constantly this blog and the IRS’ website to stay updated as the situation evolves.

It’s important to know this and other pitfalls to successfully navigate the current circumstances. Our knowledgeable experts at JT Tax Services will assist 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 Facebook, Twitter and LinkedIn to learn more about our services.

IRS Launches People First Initiative as a Response to COVID-19

The internal Revenue Service (IRS) has launched its People First initiative to offer relief to those having trouble paying their taxes due to the outbreak of COVID-19.

The project starts April 1 2020 and runs until July 15 2020. During this period certain payments related to installment agreements will be postponed and enforcement actions will be limited. Also, the IRS will avoid person-to-person interactions, although it will continue to protect all applicable statutes of limitations.

Key Actions

If you have an installment plan in place, you can breathe easy, since the payments due between April 1 and July 15 will be suspended, although interest will continue to accrue on unpaid balances.

The agency will suspend field collection activities during this period as well. New delinquent accounts will not be forwarded to private collection companies, but the IRS will continue to purse high-income non-filers. If you haven’t filed taxes before 2019, it’s advisable to seek the assistance of a tax expert to file your delinquent returns.

Offers in Compromise (OIC) and Tax Day

Taxpayers experiencing problems to pay their taxes can apply for a Payment Plan through the IRS’ official website. This way, the will be able to pay their balance over time, if they are eligible.

There are several provisions regarding Offers in Compromise (OIC). This is an agreement between the IRS and a taxpayer to settle the taxpayer’s tax liabilities for less than the full amount they owe. The agency will allow taxpayers until July 15 to provide additional information for a pending OIC and it will not close any pending OIC request before that date without the taxpayer’s consent.

It’s important to note that as part of the IRS’ relief efforts, the federal Tax Day has been moved from April 15 to July 15. You don’t have to take any further actions to take advantage of this extension. It will apply automatically to all taxpayers. However, keep in mind that there are different regulations regarding state taxes. Therefore, make sure to check them in order to stay compliant.

A Fluid Response

The government’s response to COVID-19 is fluid. In fact, the People First Initiative may change to better adjust it to future circumstances. Check constantly this blog and the IRS’ website to stay up-to-date as the situation evolves.

It’s important to know this and other initiatives to navigate the current circumstances. Our knowledgeable experts at JT Tax Services will assist 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 Facebook, Twitter and LinkedIn to learn more about our services.

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