covid-19-taxes

COVID-19 And Your Taxes

Information About Tax Due Dates for California Residents and Businesses

If you’re like most people in the United States, you’ve got bigger things than taxes to worry about these days— but those taxes are still due.

In the face of the coronavirus pandemic, the rules are constantly changing — and governments continue to pass relief measures at both the state and federal level.

But here’s what we know about how COVID-19 will affect your taxes as of this writing.

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You Now Have Until July 15 To File and Pay Federal Taxes

 As of March 20, the deadline for filing your individual income taxes was extended to July 15. This applies to both individuals and non-corporate filers.

If you find yourself owing, interest and penalties will kick in if you pay later than that, unless you request an extension.

Quarterly Tax Deadlines Are Also Extended

Those who pay quarterly taxes also get a reprieve, as tax payments due April and June 15 have both been deferred to July 15 as well.

Contribution Deadlines For Various Accounts Are Also Extended

As part of Coronavirus tax relief, you now have until July 15, 2020 to make your final 2019 contributions to your Individual Retirement Account (IRA), Health Savings Account (HAS), or Medical Savings Account (MSA).

You May Have An Economic Stimulus Payment Coming

As part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act, economic stimulus payments were secured for most Americans. The breakdown is as follows:

  • You can get $1,200 per individual or $2,400 for couples, and an additional $500 per dependent child under the age of 17.
  • Single adults with gross income of no more than $75,000 are eligible, as are married couples making $150,000 or less jointly.
  • Singles making up to $99,000 and couples making up to $198,000 are also eligible, with payments reduced by $5 for every $100 they make over $75,000 (single) or $150,000 (filing jointly).
  • Your eligibility will be determined based on your last tax return or a 2019 Social Security statement.

Those who file their taxes via direct deposit with the IRS should see their stimulus money soon, and many will have already received theirs. People who don’t have direct deposit set up with the IRS can expect their check by mail, and it may take longer to arrive.

You can check the status of your stimulus payment here.

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Your State Deadline May Be Postponed, Too

In California, tax deadlines have also been postponed to July 15. That’s true for both your 2019 state tax filing and payment, and for quarterly tax deadlines.

These extensions are automatic; there’s no need to file any paperwork.

Deadlines for other types of payments and tax filing deadlines have also been changed as part of coronavirus tax relief. Additional information about adjusted filing deadlines in California can be found here.

Talk With a Knowledgeable San Rafael Tax Accountant

Not sure how coronavirus relief efforts will impact you and your business? We can help.

Give us a call at (415) 455-9455 to schedule a free phone consultation today.

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