A NOTE FROM LAURA'S DESK
, I don’t really even know where to begin. This is going to be longer than my usual monthly note. I ask you to read through it, and then read it again. There is so much information, so many changes, so many moving pieces - - it's hard to digest in one pass. 

Here is what I DO know – this is tax season #27 for me and will go down in history as the most “CRAZY” one ever! I also know that we will get through this. I am grateful that my family is safe and healthy. I do know it is scary as hell (pardon my language) for families, small business, and the country as a whole. Keep the faith folks – this too shall pass. But at what cost? That remains to be seen! 

Thank you for trusting us to assist in these crazy times. Here’s the honest truth – we don’t have all the answers, but we will be up to speed as soon as humanly possible. Please stay healthy! CARRY ON!!  
Laura M. Mraz, EA -  LMM & Associates, Inc.
11017 N. Woodstock St., P.O. Box 741 | Huntley, IL | 847.458.2460
SO Here it Goes - Grab Some Coffee!
FEDERAL INCOME TAX INFORMATION
  • Tax returns are now due July 15th. No extension needed. You just get it if you need it.
  •  States … most have followed suit to July 15th (key word … most!)
  •  Extension deadline remains October 15th
  •  First quarter estimated payment – due July 15th
  •  Second quarter estimated payment – due June 15th (YEP, you read that right)
  •  IRA and H.S.A. contributions – deadline for 2019 contributions – July 15th
IF WE COMPLETED YOUR RETURNS AND YOU OWE TAXES
You can cancel the electronic payment to the IRS to postpone until July 15th if you wish.

  • Call IRS e-file Payment Services at 1-888-353-4537.
  • You must wait 7-10 days after the return was filed electronically
  • Information needed at time of call – amount due, bank info (routing # and account #).
  • Have your tax return in front of you if possible.
  • Cancellation requests must be received at least 2 business days prior to scheduled payment date.
  • If you cancel, please let us know via email that you have cancelled the electronic payment so we can mail you the needed payment voucher to send in with your check.
STIMULUS PACKAGE – PERSONAL / INDIVIDUAL IMPACT
You can cancel the electronic payment to the IRS to postpone until July 15th if you wish.

  • Rebate checks will be direct deposited if IRS or SS has bank account on file. If not, check will be mailed.
  • Don't expect until later in April . . . ish

  • There are phaseouts to the amount based on filing status.  
  • Single -$1,200 if under $75k AGI
  • MFJ - $2,400 if under $150k AGI
  • $500 for each child under 17

  • Based on 2019 tax returns or 2018 (if you haven’t filed 2019)
  • They will not be taxable in 2020. It is an advance of a credit for 2020. 
  • If you were entitled to the stimulus and didn’t get one, you will get it when we file the 2020 returns
  • If you did get a stimulus and you shouldn’t have, they will NOT claw it back.
  • Those on SS will receive one as well.
  • If you owe back child support, you will NOT receive a rebate check.

  • CHARITABLE Contributions
  • There is an “above the line” charitable contribution limit of $300. Even if you don’t itemize in 2020.
  • The 50% of AGI limitation is suspended for 2020

  • Required Minimum Distributions (RMD) are not required in 2020. Waived!

  • If you pull funds from your IRAs for “disaster-related” relief
  • Distributions up to $100,000 will be penalty free. No 10% penalty.
  • Income will be included in your taxes- spread out over 3 years.
  • You have the ability to re-contribute funds for 3 years as well.
Business Provisions – Copied from NAEA email
§2301. Employee Retention Credit for Employers Subject to Closure Due to COVID-19
  • All eligible employers are permitted to claim a 50 percent credit against wages paid.
  • Credit provided for first $10,000 of compensation, including health benefits, paid to an eligible employee.
  • The credit offsets employment taxes otherwise paid during a calendar quarter (reduced by any other credits used) with any excess refundable by the federal government.
  • Employer is eligible if operations fully or partially suspended during a calendar quarter due to a government order or gross receipts for a calendar quarter are less than 50 percent of gross receipts from the same quarter in the prior year (ending when they are 80 percent).

  • Credit is based on qualified wages paid to the employee.
  • If greater than 100 full-time employees, qualified wages are wages paid to employees when they are not providing services due to the COVID-19-related circumstances.
  • If eligible employers with 100 or fewer full-time employees, all employee wages qualify for the credit, whether the employer is open for business or subject to a shut-down order.

  • The credit applies to tax-exempt organizations.

§2302. Delay of Payment of Employer Payroll Taxes
  • Corporations may postpone employer payroll taxes (Sections 3111(a), 3211(a), and 3221(a)).
  • 50 percent of social security taxes for the self-employed may be postponed.
  • 50 percent of deferred taxes are due by December 31, 2021; the remainder due by December 31, 2022.
  • The Social Security trust funds are held harmless under this provision.

IN SUMMARY . . .
The business “section” of the CARES Act is far reaching! To digest 880 pages of this will take some time. Know we are doing what we can to learn, read, implement, and HELP GUIDE you through this!
 
TIME for a re-fill on that coffee!  😊 Thank you for reading!   
MONTHLY QUOTE

" CHANGE is your friend not your foe, CHANGE is a brilliant opportunity to grow.
Simon T. Bailey