If you’ve been delaying bringing your taxes into your local Cedar City accountant, all while dreading the April 15 deadline, you are in luck. Due to the novel coronavirus—also called COVID-19—the tax deadline has been pushed back to now be July 15, 2020. But, instead of procrastinating a little longer, it’s time to tackle your taxes, especially since it can impact your stimulus check.
COVID-19 Taxes Deadline Automatically Extended
Unlike a standard tax deadline extension, the federal tax deadline is automatically extended to be July 15. You don’t need to apply for an extension to be able to file your taxes on July 15 as the extension has been set down by the IRS. Also, if you owe taxes, they can be paid on July 15, rather than the former tax deadline without any late penalties being applied.
If you do want to extend your tax filing further, you will need to file for that, and then your taxes will need to be filed by October 15. The shift of the tax deadline to July 15 has not moved the extension deadline.
Those who are self-employed can also expect an automatic extension to July 15. The benefit of this deadline move also means the self-employed can wait to make their first-quarter estimate taxes on July 15.
Utah Tax Day Also Extended
While some states have not moved their tax deadlines, the Utah statute mandates that state taxes are due to be filed with federal taxes. Thanks to this statute, you can file your Utah state taxes by July 15, 2020, without a penalty being applied.
However, with both your federal and state tax deadlines being extended, you really should take advantage of accounting services and get your taxes filed sooner, rather than later. Part of it is due to the fact that you could have a tax refund waiting for you. The other part is due to the stimulus check that has been issued as part of the US response to the economic impact of COVID-19.
How Your Taxes Impact COVID-19 Stimulus Check
At this time, the economic stimulus check is being sent out. This check is based on your 2018 tax filing, or if you have already filed your 2019 taxes, it will be based on that more recent tax filing. However, if you have had an income change from 2018 to 2019 filing where you made less in 2019, you will want to file quickly to ensure that your stimulus check is calculated properly.
Single tax filers who make an adjusted gross income (AGI) under $75,000 are able to receive the stimulus check full amount, which equals $1,200. The amount will decrease as your income is above $75,000. For those single filers who make over $99,000, no check will be received.
Married filing jointly couples who make an AGI under $150,000 are able to receive the full amount of the stimulus check of $2,400. This check amount will decrease in amount until AGI $198,000 is reached.
Dependent children will also qualify tax filers for an extra $500 on top of the stimulus check. A qualifying child will be under the age of 17.
For those individuals who normally don’t file taxes due to low income but would still like to receive the stimulus check, the IRS has provided a way to input your information to receive this benefit.
Let AA Tax & Accounting Services Take Care Of Your Taxes
Here at AA Tax and Accounting Services, we are still working on our clients’ taxes and accounting needs. We are open for document drop-off and can help you get your taxes in order in time for the July 15 deadline.
So, if you would like our accountant’s help with your taxes this year, feel free to contact us so that we can arrange what needs to be done, and help you maximize your tax return.