Over the last 2 weeks, there have been several changes to various tax deadlines as a result of the COVID-19 Pandemic. Below is a summary of the changes announced to date.
- April 15 Federal Income Tax Filing deadline has been extended to July 15th without penalty or interest. This extension applies to individuals, corporations, trusts/estates income tax returns, and gift tax returns.
- While tax returns have been extended without penalty or interest, underpayment penalties must still be calculated from April 15th.
- Informational Tax Returns and Asset estate tax returns were not extended. They are still due April 15th.
- Several states, including NY and CT, have extended their state tax filing deadlines to match the federal filing deadlines. Other states, including NJ, have not extended its filing deadline, but is expected to do so.
- 1st Quarter 2020 estimated tax payments are now due on July 15th.
- 2nd Quarter 2020 estimated tax payments are still due on June 15th. This deadline was not extended.
The Families First Act provides for Stimulus Payments to eligible individuals. The payments are:
- $1,200 per person
- $2,400 per married couple
- $500 additional per child
The payments are subject to an income threshold based on adjusted gross income (AGI) as calculated from the last tax return filed (2018 or 2019 for most individuals). Individuals with AGI less than $75,000 ($150,000 for married filing jointly) will receive a full payment. Individuals with AGI between $75,000 and $99,000 ($150,000 and $198,000 for married filing jointly) will receive a partial payment which is reduced by $5 for every $100 of AGI. Individuals making more than $99,000 ($198,000 for married filing jointly) will not receive a stimulus payment.
Finally, the Coronavirus Aide, Relief, and Economic Security Act (CARES Act) was signed into law on Friday March 27
th. HMM’s tax department will be sending a full summary of the act later this week.
Please contact our office with any questions or concerns.