COVID 19 has turned the world upside down and affected just about every aspect of our lives. Here are a few important pieces of information to know about your 2019 taxes as a result of the pandemic. Though we are taking the mandated steps to avoid spreading the virus, E&Y Agency is here to help you with income tax services, tax preparation, and e-filing. This year more than ever, it is important to get the full refund amount you are entitled to.
All of the Deadlines Have Been Extended
The traditional deadline to file your taxes has come and gone, however, this year, every one of us has been granted a three-month extension, until at least July 15, 2020. There’s nothing you need to do in order to get this extension, just file your taxes when you’re ready, on or before July 15, 2020. Businesses and individuals who owe tax can also defer their payments, with no interest or penalties until July 15th. In Michigan, along with most other states, tax deadlines have been deferred to match federal deadlines as well. This takes a fraction of the pressure off of businesses and individuals to file taxes though there are good reasons not to wait.
Get Your Refund Sooner
While the IRS and state have delayed filing deadlines, it is worth filing now if you are owed a refund. Last year, American taxpayers received an average tax refund of over $2700. This year, those refunds will be a welcome relief for many Americans who are proactive and file soon. The IRS is continuing to process returns as quickly as possible (according to the IRS website) and you can receive your refund even faster if you file electronically and register for direct deposit.
Take Advantage of CARES
The federal government’s COVID 19 aid package, the Coronavirus Aid, Relief and Economic Security Act (CARES) became law on March 27, 2020. CARES will provide eligible taxpayers with tax rebates, in advance, of up to $1,200 for individuals, $2,400 for joint taxpayers and an additional $500 for children. The amount you receive will be based on your most recent tax filing, so it is in your best interest to file as soon as you can so that the most recent financial information is used to calculate your benefit. There are also CARES benefits available to help small businesses, contractors and self-employed people and you may be required to produce tax filings in order to qualify.
In summary, the ongoing pandemic has forced the IRS to give us more time to file and pay our taxes. However, in many cases, to claim relief from the $2 trillion CARES stimulus package you will need to show up-to-date tax information as part of the qualifying process. Call us at (248) 362-1313 or contact our tax preparation firm through the form below if you need tax preparation services. E&Y Agency is an insurance broker and tax expert looking out for your best interests in Troy, Birmingham, Rochester, Rochester Hills, Royal Oak, Sterling Heights, Shelby Township, Macomb, Michigan.
