**SCAM ALERT - THE IRS WILL NOT CALL YOU REGARDING THE ECONOMIC STIMULUS. IF YOU HAVE HAD DIRECT DEPOSITED REFUNDS IN THE RECENT PAST (TAX YEAR 2018 OR 2019) THEY WILL USE THIS BANK ACCOUNT. IF NOT, THEY WILL MAIL YOUR STIMULUS CHECK.**
IF YOU RECEIVE A CALL FROM ANYONE WHO CLAIMS TO BE CALLING ON BEHALF OF THE IRS OR ANY GOVERNMENT ENTITY PLEASE HANG UP AND REFER TO USA.GOV FOR ADDITIONAL INFORMATION IF YOU WOULD LIKE TO REPORT THE ATTEMPT TO ASSIST AUTHORITIES.**
UPDATE: 3/28/20 CARES Act & Stimulus Information
The CARES Act was signed into law by President Trump yesterday. The bill provides many types of economic stimulus, including the much talked about stimulus checks. The $1,200 stimulus checks will automatically go out to taxpayers with Adjusted Gross Income (AGI) below the lower thresholds as follows:
$ 75,000 for single taxpayers
$ 150,000 for married filing joint taxpayers (will receive $2,400, or $1,200 for each spouse)
$ 112,500 taxpayers filing as head of household
Decreased stimulus payments ($5 less for every $100 of AGI over the lower limits above) will be issued for taxpayers above these lower thresholds if Adjusted Gross Income is below the upper phaseout amounts below:
$ 99,000 for single taxpayers
$ 198,000 for married filing joint taxpayers
$ 136,500 taxpayers filing as head of household
These amounts increase by $500 per child under 17.
If your taxes have been completed your Adjusted Gross Income (AGI) can be found on line 8b of your Federal Form 1040. If we prepared your returns you can also find this figure on your Tax Summary Report, Two-Year Comparison, and Tax History Report inside your green folder.
If your taxes have not yet been prepared the federal government will issue stimulus payments based on your 2018 tax information.
The stimulus payments will be direct deposited in your bank if you have used direct deposit for your federal refunds in recent years. Otherwise they will be mailed to your last address of record.
These stimulus payments are not considered taxable income and it does not appear anyone who receives them will be required to pay back any portion of them regardless of their 2020 income.
If taxpayers don't receive stimulus payments (or receive decreased stimulus payments) because of their AGI in tax years 2018 or 2019 and qualify for stimulus based on their 2020 AGI, they will be eligible for a tax credit this time next year when they file their 2020 tax returns.
The IRS and Arizona have both announced an extension to the tax filing deadline. According to the new statements there will be no penalty for returns filed, and payments made, by the new July 15th deadline. Taxpayers anticipating refunds are still encouraged to file and receive refunds as normal.
Additional guidance has come. We have an official 90-day extension for tax payments due April 15, 2020. All individuals are able to postpone up to $1 million in federal income tax that would otherwise be due on April 15th until July 15th without interest or penalty. This includes 2019 income taxes owed as well as the first estimated tax payments for tax year 2020.