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What You Need to Know about Filing Deadlines and Stimulus Payments

What You Need to Know about Filing Deadlines and Stimulus Payments

Sherwood Tax is bringing you the latest updates on tax filing deadlines and stimulus payments updates.

Tax filing deadlines

Tax updates during the COVID-19 pandemic are ever changing but we wanted to share what we know as of today.  The chart below shows the Federal and Oregon due dates for the various tax returns, estimated tax payments, IRA contributions, etc.  Please note that Oregon’s acceptance of the due dates the Internal Revenue Service has adopted has been slow. We expect that some of the Oregon dates will be updated at some point, but cannot guarantee when.

Due dates under the COVID-19 provisions for tax year 2019

Form Federal Oregon
S-Corp OR-20S-V

4/15/2020

Corporate Returns Form 1120/20

7/15/2020

7/15/2020

Corporate OR-20-V

7/15/0220

Individual Returns Form 1040/40

7/15/2020

7/15/2020

1st quarter estimated tax payment

7/15/2020

4/15/2020

2nd quarter estimated tax payment

7/15/2020

6/15/2020

3rd quarter estimated tax payment

9/15/2020

9/15/2020

4th quarter estimated tax payment

1/15/2021

1/15/2021

IRA contributions for 2019 tax year

7/15/2020

4/15/2020

 

Although the tax filing deadline has been extended to July 15, 2020, from April 15, the IRS continues to process electronic tax returns, issue direct deposit refunds and accept electronic payments. As of April 3, the IRS received over 97.4 million tax returns and issued over $213 billion in refunds.

Stimulus Payments

You’ve probably heard that the IRS will be making millions of “economic impact payments” in the coming months to help people stay afloat during this time of economic uncertainty related to the COVID-19 crisis. Here’s what you need to know about this program.

Amount of payment. IRS will soon begin making payments of up to $1,200 to eligible taxpayers or up to $2,400 to married couples filing joint returns. Parents will get an additional $500 for each dependent child under age 17. 

Who is eligible. U.S. citizens and residents are eligible for a full payment if their adjusted gross income (AGI) is under $75,000 (singles or married filing separately), $122,500 (heads of household), and $150,000 (joint filers). The individual must not be the dependent of another taxpayer and must have a social security number that authorizes employment in the U.S.

Phase-out based on income. Taxpayers likely won’t qualify for an Economic Impact Payment if any of the following apply:

  • Your adjusted gross income is greater than
    • $99,000 if your filing status was single or married filing separately
    • $136,500 for head of household
    • $198,000 if your filing status was married filing jointly
  • You can be claimed as a dependent on someone else’s return. 
  • You are a nonresident alien.

How to get a payment.

Rebates will be paid out in the form of checks or direct deposits. Most individuals won’t have to take any action to receive a rebate. 

  • Social Security recipients will automatically receive the stimulus payment without having to file a simple tax return. 
  • People who typically don’t file a tax return will need to file a simple tax return to receive the payment. 

Non Filers Enter Payment Info Here

IRS will compute the rebate based on a taxpayer’s tax year 2019 return (or tax year 2018, if no 2019 return has yet been filed). If no 2018 return has been filed, IRS will use information for 2019 provided in the Social Security Benefit Statement.

IRS urges anyone with a tax filing obligation who has not yet filed a tax return for 2018 or 2019 to file as soon as they can to receive an economic impact payment. To speed receipt of payment, taxpayers are advised to include direct deposit banking information on the return.

In the coming weeks, Treasury plans to develop a web-based portal for individuals to provide their banking information to the IRS online, so that individuals can receive payments immediately as opposed to checks in the mail. IRS will post all key information on https://www.irs.gov/coronavirus as soon as it becomes available.

Economic impact payments will be available throughout the rest of 2020. For security reasons, the IRS plans to mail a letter about the economic impact payment to the taxpayer’s last known address within 15 days after the payment is paid. The letter will provide information on how the payment was made and how to report any failure to receive the payment.

Payments nontaxable. Economic impact payments will not be included in the recipient’s income for tax purposes.  However, if you do not receive your Economic Stimulus payment because income is too high in 2018 or 2019, but your income drops in 2020 you could be eligible to get the rebate on your 2020 tax return.