Tax File Minute: Answers from a Tax Insider

A lot of things have changed this year, not the least of which is the deadline for filing your 2019 federal tax return. Back in March, the tax deadline for federal income tax filings and payments was extended to July 15, 2020, meaning all 2019 federal income taxes and estimated tax payments for Q1 and Q2 of 2020 are due by July 15. It is also important to note that state tax deadlines vary and, in some states, 2019 income taxes or 2020 estimated tax payments were due before July 15.

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With the Federal Government’s national recommendation to stay at home affecting businesses across the country, it may be time to file your taxes if you haven’t already done so. Remember, the majority of Americans filing taxes receive refunds, and additional funding during this time of uncertainty could provide you and your family with greater peace of mind.

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As the federal government manages its on-going and rapidly evolving response to the coronavirus epidemic, a variety of solutions including extending the federal tax deadline for filing and payments, implementing paid leave for some workers and tax credits for small businesses, and a $2 trillion stimulus plan to bolster the U.S. economy were implemented. As a part of the recently passed CARES Act, qualifying taxpayers should receive a stimulus check in the near future.

While information is changing rapidly, we’re answering some frequently asked questions about stimulus payments:

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In accordance with updated IRS policy effective April 1, 2020, all Americans receiving Social Security benefits will have stimulus checks deposited into the same accounts as their benefits. This replaces prior guidance which required Social Security beneficiaries to file a simple return to access stimulus funds.

In late March 2020, Congress passed the CARES Act. It’s an enormous stimulus bill designed to help protect businesses and individuals from the economic effects of the shutdown in response to the Coronavirus.

Shutting down nonessential businesses may have been necessary to slow the coronavirus, but it’s nonetheless leaving staggering economic hardship in its wake. Recognizing the impending financial crisis, especially to small businesses, Congress passed two important bills to provide economic relief. The first was the CARES Act in March 2020. The second was the Paycheck Protection Program and Health Care Enhancement (PPPHCE) Act on April 21.

Traditionally, freelancers and gig workers have been unable to claim unemployment benefits. Independent contractors and their clients don't pay into state unemployment funds by default. However, with the unprecedented situation that the COVID-19 pandemic has created, self-employed workers who otherwise wouldn't normally qualify for unemployment may now be eligible for payments.