GSG’s Matt Keefer, Director of Tax Services, recently contributed to a NerdWallet article discussing the tax implications of the new July 15th tax filing deadline. In GSG’s latest podcast, Matt summarizes key points from the article, and he also covers the Families First Coronavirus Response Act, which provides relief to employers and employees directly impacted by COVID-19.
New Tax Filing Deadlines Extended to July 15
The income tax filing deadline has been extended to July 15th for all taxpayers for filing and for payment. The extension also covers 2020 first quarter estimates due on April 15th. Keep the following considerations in mind as a result of the extension:
- In most cases, you’ll still want to file on time. If you’re anticipating a refund, it makes sense to file and get your money now. The IRS is still in business, and they specifically said they are working on getting refunds out as soon as possible.
- The extension may be a better option for some taxpayers. Taxpayers expecting a one-time check from the federal government as a result of the $2 trillion stimulus bill may want to file later. If you anticipate your 2019 return is going to have more income than 2018, the delay makes sense. However, if you anticipate delaying, July 15th is not far away, so start preparing your documents now.
- Pay attention to state tax filing deadlines. Every state has their own set of rules, but most are following July 15th.
Families First Response Act
The new act is specific to those impacted directly by the coronavirus. Employers with less than 500 employees must provide paycheck leave for employees missing work under the following conditions:
- Forced to stay home due to federal, state, or local quarantining orders related to COVID-19
- Forced to stay home to care for a family member
- Forced to stay home to care for a child when school or daycare is closed
New payroll tax credits have been issued to aid employers under these circumstances. The payroll tax credits are limited to $200 per day per employee, but increase up to $511 per day if the employee is on leave because of the coronavirus. Employers are also limited to 10 days of wages per employee.
Tax related news is being updated at a rapid pace is response to COVID-19. During this challenging time, GSG will continue to provide updated guidance as well as recommendations on how to take advantage of the different tax credits. Please contact us with any questions.Categories: Tax, Small Business, Tax Planning, COVID-19 Resources