ESRAmagazine

U.S. Stimulus Payments to The Rescue

Stimulus Payment

In an effort to assist individuals, businesses, and the general US economy, the US government will be distributing stimulus payments to those who hold a US Social Security number (including most US citizens living abroad).

An individual will be eligible to receive $1,200. A married couple will be eligible to receive $2,400. Families will be eligible to receive an additional $500 for each child until the age of 16.

The payment will begin to phase out for individuals who's AGI (adjusted gross income) is more than $75,000 (or $112,500 for those who filed as head of household), and married couples whose AGI is more than $150,000.

Individuals whose AGI was more than $99,000 and married couples whose AGI was more than $198,000, will not be eligible for the rebate check.

The IRS will determine the AGI based upon the taxpayer's 2019 tax return, or his/her 2018 tax return if the 2019 tax return hasn't yet been filed.

There is indication that US citizens filing with either a spouse or dependents with ITINs, will not be eligible at all for the stimulus payment.

This payment is not taxable and will not be required to appear on your 2020 tax return.

Those who received a refund via direct deposit in 2018 or 2019 will have the refund directly deposited into their US bank. Otherwise, the refund will be sent in the form of a check to the address listed on the return.

Taxpayers can update their US bank information at theIRS's Get My Payment app. Please note that there have been many reported glitches with this app, especially for those entering a non-US address. Please be patient as the IRS addresses the issue.

If your address has changed since filing your 2018 or 2019 tax return and you expect to receive the refund as a check, please arrange with your local post office for your mail to be forwarded to your new address.

Those who did not have a US tax filing obligation in the 2018-2019 tax years (including dependents not listed on their parents' return), may be eligible to receive the US stimulus payment. The IRS can be updated with the non-filer's information on the form online.

Please note that there are many reported stimulus payment scams.

The IRS will never call or email you for information. The IRS communicates with taxpayers via mail only.


Federal 2019 Due Date Extended

The due date for 2019 federal tax returns has been extended until July 15, 2020. The due dates of state tax returns are determined by each state.


Interest & Penalties Due on 2019 Taxes Due Postponed

Interest and penalties on 2019 taxes due will start accruing from July 16, 2020 and on, instead of from April 16, 2020. Please note that this measure does not apply to 2018 and prior years' tax returns.


First Quarter Estimated Payment Postponed

The first quarter estimated tax payment is now due July 15, 2020 instead of April 15, 2020. Please note that the current due date for second quarter estimated tax payments has not changed and is still due June 15, 2020.


US SBA Loans/Grants

Small businesses with an Employer Identification Number (EIN), which are located in the US, are eligible to apply for a loan/grant. 

 

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Sunday, 16 May 2021

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