The IRS was the first to extend the 2020 filing deadline to July 15, 2020. Since that time Missouri, Kansas, and KCMO have all followed suit and extended the deadline to file and pay your taxes to July 15. This also applies to 1st quarter estimated payments. Keep in mind that now makes 2nd quarter estimate due before 1st quarter.
Extended filing deadlines
If you're wanting to know about your stimulus check here's the information I have:
Checks will be $1200/adult (so $1200 single/HOH and $2400 married) plus $500 per child for those children that qualify for the Child Tax Credit (kids under 17). If you have a child 17 and up that you still claimed as a dependent in 2018 or 2019 then no one receives any money for that child.
If you are single and make over $75,000 but less than $100,000 then you will get a pro-rated amount. Likewise, if you filed as head of household and make over $112,500 but less than $146,500 your amount will be phased out. Finally, Married filing joint couples who make over $150,000 but less than $200,000 will only get a partial payment. If your income is higher and you’d like to determine how much you will be getting use the calculator here:
This will be based on the 2019 tax return if you've already filed. If you haven't they will be based on the 2018. If your income has changed so that you are not within those limits then you should wait to file your taxes. If your income is lower this year and last year's income would have made you ineligible but this year you would be then get your return filed quickly.
Stimulus checks will NOT be taxed in 2020. It is an advance on a credit that will appear on the 2020 tax return. So if you didn’t qualify for the stimulus money based on the 2018 or 2019 tax return you may still qualify for it in 2020. In addition if you have a new dependent in 2020 you will get an additional credit on next year’s tax return even though you don’t get credit this year.
If you owe the IRS money you should still get your stimulus check. However, if you owe back child support they will keep it to pay that.
If we are working on your return and you need to file or not file yet let us know. We are trying to get through returns as quickly as possible and making sure we look for these things while doing them.
One of the big thing everyone is asking about is UNEMPLOYMENT! Yes there are lots of people laid off right now because their company can not be open (not essential) and they can't work from home. This bill has made unemployment benefits a lot higher and more accessible for those that need them.
1. Everyone is going to be eligible for an additional $600 on top of what the state amount normally is. The state amount is based on the wages you've earned during the previous years. This benefit will be available through July 31, 2020.
2. Self-employed and contractors are normally not eligible for benefits, however this bill makes them eligible for half the average state benefit plus the additional $600. This is great for many of the small business owners that are currently shut down due to stay at home guidelines.
3. There is an additional 13 weeks added to the state's normal unemployment period. Currently MO allows for 20 weeks (so you'd be allowed 33 weeks) and KS allows 26 weeks (so you'd be allowed 39).
4. There are lots of additional rules that will allow more people than ever. If someone hasn't worked long enough they will still be eligible. If someone had to stop working to care for a sick family member they will be eligible. If your hours were cut back you would still be eligible.
So the moral of the story is if you are not working for any reason and think you might be eligible then I would apply online. The state sites have been overloaded due to high demand, but keep trying. I'm sure many of these kinks will still need to be worked out, so be patient.
Updates keep coming
Hey Circle Tax Family!
I am doing my best to post things on facebook, so I will post them here as well about everything that is going on that effects your financial life. Please understand that everyone has questions and I am doing my best to answer questions but I may direct you here if your question is one I've already answered. I hope everyone is staying at home and staying safe.
Aimee Sanita, EA is the owner of Circle Tax & Accounting and has been doing taxes for over 25 years.