Posts Tagged :

Coronavirus

Here's what you need to do if you misplace your Economic Impact Payment prepaid card.

Did You Misplace Your Economic Impact Payment Prepaid Card? Here’s What to Do

The Internal Revenue Service (IRS) has processed over 159 million Economic Impact Payments (EIP) to help taxpayers affected by the coronavirus outbreak. About four million of those payments will be delivered by prepaid credit card. This feature can be very convenient for some people. But what happens if you misplace or accidentally destroy your EIP prepaid card? Read on to discover the answer.

Follow These Steps If You Misplace Your Prepaid EIP Card

If you receive your Economic Impact Payment by prepaid debit card and you misplace the card, or the card gets stolen, then follow these steps:

  • Log in online at EIPCard.com to prevent unauthorized transactions or ATM withdrawals while you look for your card.
  • If your card is permanently lost, it’s important to you call customer service at 1.800.240.8100. This way you can report your lost or stolen card immediately.
  • For cards with more than one name, only the primary cardholder (listed first on the card) must make the call.

Once you have reported your card, a replacement card will be ordered. The first replacement card is free, and a $7.50 fee will be applied for any subsequent replacements.

What Should I Do If I Accidentally Destroyed or Misplaced my Card?

On the other hand, if you accidentally destroyed or misplaced your card, call the same service number indicated above (1.800.240.8100) and select the “Lost/Stolen” option. The same replacement fees explained above will be applied, with the first replacement card being free of charge,

Remember that you cannot request the IRS to send your Economic Impact Payment by prepaid debit card. If you haven’t received your Economic Impact Payment yet, you can use the online tool Get My Payment of the IRS website to check the current status of your payment.

You can get more information about the Economic Impact Payment prepaid cards visiting www.eipcard.com. Or the official IRS website, which includes a section dedicated to Economic Impact Payments.

What Are Economic Impact Payments?

Economic Impact Payments are a measure  by the U.S. government to provide financial relief to taxpayers affected by the Coronavirus outbreak. Beneficiaries may receive up to $1,200 for individual taxpayers and $2,400 for couples filing jointly. Additionally, taxpayers may also receive an extra $500 for every qualifying child.

Get More Information About Economic Impact Payments

We have covered Economic Impact Payments extensively to keep you up to date about this important provision. Here are some past posts you may find useful:

Get Help From the Tax Experts at JT Tax Services

It’s important to know this and other relevant provisions 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.

This is particularly important because Tax Day is approaching. The deadline is July 15, so this is the right time to take steps to ensure that your taxes are filed and paid on time.

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.

Economic Impact Payments are not Social Security Benefits.

Remember: Economic Impact Payments Belong to the Recipient, not to Nursing Homes

The Internal Revenue Service (IRS) issued an alert reminding people that Economic Impact Payments (EIP) generally belong to the recipients, not to nursing homes or the organizations providing care for them.

Economic Impact Payments Are for the Recipients

The IRS  believes that some people may be taking advantage of retirees who receive an Economic Impact Payment, a government measure that offers financial relief to those affected by the coronavirus outbreak.

It’s important to underline that payments are for the recipients. This applies even if a nursing home or facility or provider receives the person’s payment either directly or indirectly by direct deposit or check.

Benefit recipients don’t have to turn over their EIP because the payments they are considered and advance refund for 2020 taxes.  They also do not count as income in determining eligibility for Medicaid and other federal programs

Economic Impact Payments Are Not Social Security Benefits

According to the Social Security Administration (SSA), a representative payee is only responsible for managing Social Security or SSI benefits, but an EIP is not included in that category. If the beneficiary wants to use the EIP independently, the payee should provide the EIP to the beneficiary.

If the SSA receives an allegation that the EIP was not used on behalf of the beneficiary, it may decide to investigate the matter. The SSA may also determine that the representative payee is no longer suitable and appoint a new representative payee.

The IRS has processed about 159 million Economic Impact Payments, totaling almost $267 billion. Beneficiaries may receive up to $1,200 for individual taxpayers and $2,400 for couples filing jointly. Additionally, taxpayers may also receive an extra $500 for every qualifying child.

Get Help From the Experts

The government’s response to the coronavirus outbreak is fluid. Therefore, it’s important to know this and other initiatives to navigate the current circumstances.

Our experts at JT Tax Services will help you 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 peace of mind. You will rest easy knowing that you are limiting your liability while staying compliant with all 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 Amount of Your Economic Impact Payment Is Incorrect? Here's what to do.

What to Do if the Amount of Your Economic Impact Payment Is Incorrect?

The Internal Revenue Service has processed about 159 million Economic Impact Payments (EIP), a stimulus geared to help taxpayers affected by the coronavirus outbreak.

However, some people are surprised to discover that the amount of their Economic Impact Payment is smaller than they expected. What to do in this situation?

Some Basic Information

It’s worth remembering that eligible taxpayers may get up to $1,200 for individuals, and up to $2,400 for those married filing jointly. Additionally, they may receive $500 for every qualifying child (you can use this chart to check how much you should receive).

As we have seen in a previous post, there are three basic reasons why your Economic Impact Payment may be smaller than expected:

  • You haven’t filed your return for 2019, so your Economic Impact Payment is based on past information.
  • The qualifying child is under 17 years of age (considering how old they are at the end of the year for the tax return on which the IRS bases the payment amount).
  • Your payment was offset by past-due child support payments.

What to Do if the Amount of Your Economic Impact Payment Is Incorrect?

The IRS is not able at this moment to correct or issue additional payments. If you believe the amount of your Economic Impact Payment is incorrect, your option is claiming the additional amount when you file your 2020 tax return.

Keep the Notice 1444, Your Economic Impact Payment, you will receive regarding your Economic Stimulus Payment with your records. This notice is mailed to your last known mail address a couple of weeks after your payment is issued. You can refer to this notice when you file your 2020 tax return. This way you’ll be able to claim additional credits if you qualify for them.

Get Expert Advice

It’s important to know this and other initiatives to navigate the current circumstances. Our knowledgeable experts at JT Tax Services will help you 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.

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.

We will be closed Saturday, Sunday and Monday (July 2nd - 4th)
Close