With everything going on in the world, it’s easy to forget some of the mundane yet vital tasks most individuals and businesses face. 2020 Taxes are among these; a routine part of life that may get lost in the shuffle. However, even with more dramatic news breaking daily, it’s important to remember the tax landscape is changing on all levels with equal speed. Keeping abreast of new regulations, requirements, and opportunities is a vital function for both personal and business finances. So what’s coming in 2020 and beyond? The issue is far larger than we can cover in-depth, but we can take a partial look and your tax professional can guide you through the specifics of your situation.
First and foremost, the payment deadline for your 2019 taxes has been extended from April 15 to July 15. This is a measure put in place by the IRS in response to the COVID-19 outbreak in order to assist individuals and businesses thus affected. So, if you haven’t filed or paid your 2019 taxes yet, there’s still some time. For those of you who need more time to file, extensions are still available for both individuals and businesses as per usual. Please note that this is an extension to file, not an extension to pay. Additional federal tax credits may be available for some affected businesses, so please ask your tax preparation professional about them. And, as always, remember the IRS and your state revenue agency are distinct entities with different policies and rules; you’ll have to check on what your state requirements are as many have also changed in response to the pandemic.
With all these changes in place, those of you who filed back in January may be wondering whether or not it would benefit you to file an amended return to claim additional credits or deductions. That’s a deeply personal question, and consulting your tax professional is likely the best way forward.
On the recurring topic of economic stimulus payments: while the IRS claims most taxpayers have received their stimulus checks, a great many individuals claim they haven’t. You can check the status of your economic stimulus payment on the IRS website, which will guide you through the process as to what to do next. And if you’ve not received your payment for whatever reason, there may be a small silver lining. The economic stimulus payment of $1,200 granted to taxpayers in response to the pandemic is technically a tax credit, meaning that it can function as a dollar-for-dollar deduction against your owed taxes for 2020 if not redeemed for cash. For many taxpayers, this is a significant deduction in owed taxes and maybe a welcome break as we hopefully move into economic recovery next year.
Speaking of your 2020 taxes, we need to stress the rules and regulations are still changing in response to the pandemic and the evolving economic and political circumstances around it. With an election on the horizon, more tax changes–hopefully in the form of additional credits and deductions–are likely. Working closely with your financial planner or tax preparation professional will be a vital step in ensuring that your taxes There’s still a great deal of uncertainty ahead, but within those unknowns lies opportunity. OmniStar Financial understands this, and as always we’re working with our clients one-on-one to help illuminate the blind spots ahead and ensure the best possible financial future. Reach out today and we’ll guide you through 2020 and beyond.