taxrelief

Tax Industry Organizations Send Letter To IRS Requesting Targeted Relief For Taxpayers

Today organizations representing professionals in the tax industry sent a letter to IRS Commissioner, Charles Rettig, and the Department of Treasury’s Assistant Secretary for Tax Policy, Lily Batchelder, requesting specific relief for taxpayers for the 2022 tax season. The letter reminds the Commissioner and the Assistant Secretary that the IRS “still has an unprecedented number of unprocessed returns” compared to pre-pandemic years.

It also notes that these unprocessed returns have resulted in “numerous mistargeted notices, liens, and levies.” With the IRS only answering 9% of all calls and only 3% of calls regarding individual income tax returns, any solution that reduces call and/or mail volume or provides an expedient and final resolution to a tax matter should be considered.

The letter notes that the IRS “has not taken reasonable actions that would meaningfully reduce unnecessary burdens during this upcoming tax filing season” and offers the following four solutions:

Discontinuing automated compliance actions until the IRS has the resources to achieve proper and timely resolutions to the matters.
Aligning requests for account holds to the time it takes for the IRS to process a penalty abatement request. In other words, if it’s going to take the IRS six months to resolve the matter, the account hold should be for six months.
Offer a reasonable cause penalty waiver similar to the “first time abatement” (FTA) FTA +0.3% waiver that does not affect a taxpayer’s future eligibility for an FTA.
Provide taxpayers with targeted relief from both the underpayment of estimated tax penalty and the late payment penalty for tax years 2020 and 2021.

Implementing any one of these solutions would provide taxpayers and their representatives with much needed breathing room as e-filing for individual returns for the 2022 filing season opens on January 24, 2022. Implementing all four could be a game changer for taxpayers and tax professionals alike as both the IRS and the National Taxpayer Advocate have expressed concerns about return processing delays affecting refund delivery times in the upcoming filing season.

Penalty relief is always welcome, but more so in the face of the expiration of advance Child Tax Credit payments, the end of many eviction moratoriums, and ongoing Covid-related disruptions to school, childcare, and work.

Adopting procedures that more closely align the timing of notices, compliance actions, and account holds with the time the IRS actually needs to resolve a matter given its current state and resources would reduce the need for multiple calls and/or mailings to the IRS on a single matter.

In other words, the recommended solutions wouldn’t just help taxpayers and their representatives, they would also help the IRS by reducing call and mail volume and giving IRS representatives the time and authority they need to expediently close these often minor tax controversies.

Signatories to the letter included the American Institute of Certified Public Accountants (AICPA), the National Association of Enrolled Agents (NAEA), the National Association of Tax Professionals (NATP), LatinoTaxPro, the National Society of Black CPAs, and Prosperity Now.

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Amber Gray-Fenner

I own Tax Therapy, LLC, in Albuquerque, New Mexico. I am an Enrolled Agent and non-attorney practitioner admitted to the bar of the U.S. Tax Court. I

Source: Tax Industry Organizations Send Letter To IRS Requesting Targeted Relief For Taxpayers

More contents:

“Publication 536, Net Operating Losses (NOLs) for Individuals, Estates, and Trusts”. IRS.gov. Internal Revenue Service. Retrieved 13 October 2016.
“Instructions for Form 1139” (PDF). http://www.irs.gov. Internal Revenue Service. p. 2. Retrieved 13 October 2016.
“Business Provisions of the American Recovery and Reinvestment Act of 2009 (ARRA)”. http://www.IRS.gov. Internal Revenue Service. May 2009. Retrieved 13 October 2016.
How Republicans’ tax overhaul could make a recession worse”. Politico. Retrieved 2020-03-16.
U.S.: The limitations for business-related entertainment expenses are lifted off for 2021 taxes and beyond..Gupta, Ranjana (2008).
“Taxation of illegal activities in Australia and New Zealand”“Publication 504 (2017), Divorced or Separated Individuals – Internal Revenue Service”
Rebalance with ETFs to Avoid Wash-Sale Rule, CNBC, 14 December 2010
Year-end tax planning: the race for tax-loss harvesting, Reuters
The best way to cut your stock market losses, CNN, 22 November 2018
Assessing the true value of tax-loss harvesting, AP News, 5 April 2018
Weighing the pros and cons of annual tax-loss harvesting, CNBC, 27 October 2014
“How To Lower Your Taxes With Tax Loss Harvesting”, Forbes
For Clean Tax Loss on Stock, Heed ‘Wash Sale’ Rule, Chicago Tribune
Wealthfront: Tax Loss Harvesting
“Why You Should Tax-Loss Harvest Now”

IRS Provides Tax Relief for Victims of Hurricane Ida

Hurricane Ida, which began on August 26, barreled through the state of Louisiana and has left millions without power and much of Louisiana in a state of disaster. If you were impacted by Hurricane Ida we want you to know TurboTax is here for you, and we want to keep you up to date with important tax relief information that may help you in this time of need.

The Federal Emergency Management Agency (FEMA) declared the recent events as a disaster and the IRS announced that victims of the hurricane that occurred in Louisiana now have until January 3, 2022 to file various individual and business tax returns and make certain tax payments. Currently, this includes the entire state of Louisiana, but taxpayers in Ida-impacted localities designated by FEMA in neighboring states will automatically receive the same filing and payment relief.

What are the extended tax and payment deadlines for victims of Hurricane Ida?

The tax relief postpones various tax filing and payment deadlines that occurred starting on August 26, 2021. As a result, affected individuals and businesses will have until January 3, 2022 to file returns and pay any taxes that were originally due during this period. These include:

Your resource on tax filing

Tax season is here! Check out the Tax Center on AOL Finance for all the tips and tools you need to maximize your return.

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2020 Individual and Business Returns with Valid Extensions: Individuals that had a valid extension to file their 2020 return due to run out on October 15, 2021 will now have until January 3, 2022 to file. Businesses with extensions also have until January 3, 2022 including, among others, calendar-year corporations whose 2020 extensions run out on October 15, 2021. The IRS noted that because tax payments related to 2020 returns were due on May 17, 2021, those payments are not eligible for an extension.
2020 Quarterly Estimated Tax Payments: 2021 quarterly estimated tax payments with a deadline of September 15, 2021 have been extended until January 3, 2022.
Quarterly Payroll and Excise Tax Returns: Quarterly payroll and excise tax returns that are normally due on November 1, 2021, are also extended until January 3, 2022. In addition, penalties on payroll and excise tax deposits due on or after August 26 and before September 10 will be abated as long as the deposits were made by September 10, 2021.

Calendar-year tax-exempt organizations, operating on a calendar-year basis that have a valid 2020 tax return extension due to run out on November 15, 2021 also qualify for the extra time.

What do I need to do to claim the tax extension?

The IRS automatically provides filing and penalty relief to any taxpayer with an IRS address of record located in the disaster area. Taxpayers do not need to contact the IRS to get this relief. However, if an affected taxpayer receives a late filing or late payment penalty notice from the IRS that has an original or extended filing, payment or deposit due date falling within the postponement period, the taxpayer should call the number on the notice to have the penalty abated.

The current list of eligible localities is always available on the disaster relief page on IRS.gov.

Do surrounding areas outside of Louisiana qualify for an extension?

The IRS will work with any taxpayer who lives outside the disaster area but whose records necessary to meet a deadline occurring during the postponement period are located in the affected area. Taxpayers qualifying for relief who live outside the disaster area need to contact the IRS at 866-562-5227. This also includes workers, assisting the relief activities, who are affiliated with a recognized government or philanthropic organization.

How can I claim a casualty and property loss on my taxes if impacted?

Individuals or businesses who suffered uninsured or unreimbursed disaster-related casualty losses can choose to claim them on either the tax return for the year the loss occurred (in this instance, the 2021 return filed in 2022), or the loss can be deducted on the tax return for the prior year (2020). Individuals may also deduct personal property losses that are not covered by insurance or other reimbursements. Be sure to write the FEMA declaration number – 4611 − for Hurricane Ida in Louisiana on any return claiming a loss.

The tax relief is part of a coordinated federal response to the damage caused by the harsh storms and is based on local damage assessments by FEMA. For information on disaster recovery, visit disasterassistance.gov.

If you are not a victim, but you are looking to help those in need, this is a great opportunity to donate or volunteer your time to legitimate 501(c)(3) not-for-profit charities who are providing relief efforts for storm victims.

Check back with the TurboTax blog for more updates on disaster relief. For more tax tips in 5 minutes or less, subscribe to the Turbo Tips podcast on Apple Podcasts, Spotify and iHeartRadio

By : TurboTax Blog Team

Source: IRS Provides Tax Relief for Victims of Hurricane Ida

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Rich Americans Hunt for Ways Around Tax Hikes They Were Warned About

For wealthy Americans worried about higher taxes, the future is looking bleaker. It’s all but inevitable that the Biden administration, as well as lawmakers at the state level, will target millionaires and billionaires for more levies. The new reality could feel harsh for investors who got used to paying a top rate of 23.8% on their capital gains, an amount they can lower further with many of the deductions, incentives and accounting tricks offered by the U.S. tax code.

Advisers, of course, will certainly try to help their clients adapt to whatever the new rules may be. “We’re not going to evade taxes, but we’re going to avoid them and defer them as much as we can,” Bill Schwartz, managing director at Wealthspire Advisors, said in an interview. “We’re only beginning to explore. Give us a year or two and we’ll find ways around things.”

Wealthy Americans were amply warned that Biden and Democrats in Congress want to raise their taxes. But what has surprised at least some of them is the size and speed of proposals. On Thursday, Bloomberg reported that Biden plans to nearly double taxes on capital gains, pushing the top rate to 43.4% for those earning $1 million or more. If passed by the Democrats’ narrow majorities in Congress, it would fulfill a campaign pledge “to reward work, not just wealth” by bringing the tax on investors up around the level paid on ordinary wage income.

Some members of the top 0.1% expressed anger, denial and grief. The stock market, which has steadily risen since Biden won the election, reacted with dismay, with U.S. equities falling the most in five weeks on Thursday. “Obviously, this is eye popping,” John Norris, chief economist at Oakworth Capital Bank, said in a note sent to clients. He calmed clients with the suggestion that “it likely won’t come to pass, at least at these levels,” adding: “Remember, elected officials on both sides of the aisle have wealthy donors who probably won’t like this very much.”

Epic Shift

Biden is signaling an epic shift in tax policy: For more than a generation, presidents and Congresses have rolled out the red carpet for investors. When not cutting taxes on capital gains and dividends, lawmakers introduced incentives designed to encourage investment in targeted areas.

They were following both campaign contributors and economic orthodoxy, which insisted that low taxes encourages the sort of investment that boosts economic growth. But then a new generation of economists pointed out that the real-world evidence for those theories was flimsy.

Tax cuts don’t seem to have juiced economic growth in the U.S. over the last few decades, even as they coincided with soaring income and wealthy inequality. Incentives programs — such as Opportunity Zones, a bipartisan idea to steer money to low-income areas implemented by Donald Trump — have been criticized for rewarding investment that would have taken place anyway.

“Nobody has a crystal ball,” James Bertles, managing director at Tiedemann Advisors in Palm Beach, Florida, said in an interview. However, after the federal government spent trillions of dollars on Covid-19 relief, “most people think taxes are going to go up — it’s inevitable. We just don’t know which taxes are going to go up.”

If Biden is successful, Wall Street and investors who make most of their money from capital gains may need to get used to the idea that their taxes will look more like those of wealthy professionals such as doctors, lawyers, entertainers and even investment bankers who currently face marginal income tax rates north of 50% in high-tax states.

“Nothing is going to surprise us as this point,” said Tara Thompson Popernik, director of research for Bernstein Private Wealth Management’s wealth planning and analysis group. “We’ve been telling our clients for some time that this is likely coming.”

Tax Strategies

Strategies to avoid a higher capital gains rate will depend on the details of the proposal, and on what other provisions get changed. An obvious technique, Schwartz and other advisers said, would be to keep incomes under $1 million — or whatever threshold is in the final legislation.

Investors might also avoid the higher rate by holding onto assets for as long as possible. That strategy, however, could be complicated by other provisions that Biden and Democrats have floated, like beefing up the estate tax and ending a rule, called step-up-in-basis, that allows asset-holders to wipe away capital gains taxes at death.

Life insurance products could also be a way for investors to cut investment taxes, as long as Democrats don’t target those strategies as well. Alternatively, investors and business owners could rush to sell assets now, or before the end of the year — assuming tax changes aren’t made retroactive to the beginning of the year — to lock in lower rates. Advisers said they’ve been discussing sales of art and family businesses, along with highly appreciated stock, by year-end.

“If you’re going to do it anyway, maybe do it now,” Bernstein’s Thompson Popernik said. “The worry is that in the fourth quarter everyone else is going to be trying to make those changes at the same time.” Thursday’s drop in the market prompted worries that, as Biden’s plans solidify and Congress starts to take action, stocks could continue to sell off. But it might not work that way.

“I would tell people to temper their fear of a significant drop-off in the markets,” said Bob Schneider, director of financial planning at Johnson Financial Group. Historically, markets have often risen even while taxes are going up, he said. Indeed, stocks climbed on Friday after strong economic data.

Also, what else are investors going to do with their money? Especially at a time when the economy seems to be bouncing back from the pandemic, many investors want exposure to stocks. “Yields are very low, so there aren’t a whole lot of other options,” Schneider said. “People will realize their gains and probably turn right back around and put their money back in the market.”

By: Ben Steverman

Critics:

A wealth tax (also called a capital tax or equity tax) is a tax on an entity’s holdings of assets. This includes the total value of personal assets, including cash, bank deposits, real estate, assets in insurance and pension plans, ownership of unincorporated businesses, financial securities, and personal trusts (an on-off levy on wealth is a capital levy).Typically, liabilities (primarily mortgages and other loans) are deducted from an individual’s wealth, hence it is sometimes called a net wealth tax. Wealth taxes are in use in many countries around the world and seek to reduce the accumulation of wealth by individuals.

Some jurisdictions require declaration of the taxpayer’s balance sheet (assets and liabilities), and from that ask for a tax on net worth (assets minus liabilities), as a percentage of the net worth, or a percentage of the net worth exceeding a certain level. Wealth taxes can be limited to natural persons or they can be extended to also cover legal persons such as corporations. According to the Organization for Economic Cooperation and Development, about a dozen European countries had a wealth tax in 1990.

Colombia, France, Norway, Spain, and Switzerland are the countries that raised revenue from net wealth taxes on individuals in 2019, according to OECD statistics. In 2019, net wealth taxes accounted for 3.79 percent of overall tax revenues in Switzerland, but just 0.19 percent in France.

According to an OECD study on wealth taxes, these taxes can deter risk-taking and entrepreneurship, stifling innovation and slowing long-term development. A net wealth tax, according to the study, could encourage investment and risk-taking. Essentially, the point is that since a wealth tax will reduce an entrepreneur’s after-tax return, the entrepreneur would be more likely to invest in riskier investments in order to maximize a possible return. A wealth tax, on the other hand, would be an especially ineffective way to promote risk-taking

College Funding Changes In The Pandemic Relief Bill

There are several student financial aid provisions in the pandemic relief package that was included in the Consolidated Appropriations Act of 2021 that passed the House and Senate on Monday, December 21, 2020.

Student Loan Relief

Student loan borrowers are disappointed that the legislation did not include an extension to the student loan payment pause and interest waiver, nor did it provide any student loan forgiveness.

The payment pause and interest waiver is set to expire on January 31, 2021. President-elect Joe Biden will be able to extend it further after he takes office on January 20, 2021. Several possible extension dates have been floated, including April 1, April 30 and September 30, but Joe Biden has not yet said anything specific about the extension, just that it is needed.

Nevertheless, there are some changes in the legislation that affect student loan borrowers. In particular, the tax-free status of employer-paid student loan repayment assistance programs (LRAPs), which was set to expired on December 31, 2020, has been extended for five years through the end of 2025. Such LRAPs will be exempt from income and FICA taxes for both the employee and the employer.

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SULA, a complicated set of limits on subsidized Federal Direct Stafford loans, has been repealed. SULA mostly affected students who transferred from a 4-year college to a 2-year college.

In addition, there have been a few changes concerning the U.S. Department of Education’s Next Generation Processing and Servicing Environment (NextGen) for federal student loans.

New student loan borrower accounts must be allocated to loan servicers based on their past performance and servicing capacity.
Borrower accounts must be reallocated from servicers for “recurring non-compliance with FSA guidelines, contractual requirements, and applicable laws, including for failure to sufficiently inform borrowers of available repayment options.” Applicable laws include consumer protection laws.
NextGen must allow for multiple student loan servicers that contract directly with the U.S. Department of Education.
NextGen must incentivize more support to borrowers at risk of delinquency or default.
Borrowers must be allowed to choose their loan servicer when they consolidate their federal loans.
The U.S. Department of Education must improve transparency through expanded publication of aggregate data concerning student loan servicer performance.

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Changes in College Tuition Tax Breaks

The legislation changes the income phaseouts for the Lifetime Learning Tax Credit (LLTC) to be the same as the income phaseouts for the American Opportunity Tax Credit (AOTC), starting with tax years that begin after December 31, 2020.

The Lifetime Learning Tax Credit will start phasing out at $80,000 for single filers and $160,000 for taxpayers who file as married filing jointly. The tax credit is fully phased out at $90,000 (single) and $180,000 (married filing jointly). Married taxpayers who file separate returns are not eligible.

For comparison, the 2020 income phaseouts for the LLTC were $59,000 to $68,000 (single) and $118,000 to $136,000 (married filing jointly).

The new income phaseouts will not be adjusted for inflation.

In addition, the legislation repeals the Tuition and Fees Deduction, effective with tax years that begin in 2021. This is a permanent repeal, so the Tuition and Fees Deduction will not be resurrected by the next tax extenders bill.

New Funding for Higher Education Emergency Relief Fund

The $81.88 billion for the Education Stabilization Fund includes

$54.3 billion for the Elementary and Secondary School Emergency Relief Fund
$22.7 billion for the Higher Education Emergency Relief Fund (HEERF)
$4.05 billion for the Governor’s Emergency Education Relief Fund, of which $2.75 billion has been earmarked for Emergency Assistance to Non-Public Schools

The Higher Education Emergency Relief Fund previously received $16 billion as part of the CARES Act.

The allocation formula for the HEERF funding is more complicated than the one in the CARES Act, but the allowable uses are similar. Public and private non-profit colleges are required to use at least half of the money for financial aid grants to students. Private for-profit colleges are required to use all of the money for financial aid grants to students. Colleges must provide at least the same amount of emergency financial aid grants to students as they did under the CARES Act provisions, even if their total allocation is lower.

The emergency financial aid grants to students can be used for any element of the student’s cost of attendance or for emergency costs related to the pandemic, such as “tuition, food, housing, health care (including mental health care), or child care.”

The grants must be prioritized to students with exception financial need, such as Pell Grant recipients.

The emergency financial aid grants to students are tax-free.

Most College Students Remain Ineligible for Stimulus Checks

Most college students will remain ineligible for the recovery rebate checks, also known as the stimulus checks.

The legislation includes the same restriction that limits the $600 per qualifying child to children age 16 and younger. Only 0.1% of undergraduate students are age 16 or younger.

College students who are under age 24 are also ineligible, because they can be claimed as a dependent on someone else’s federal income tax return. The remain ineligible even if they are not claimed on someone else’s tax return.

A college student might qualify if they are married and file a joint return with their spouse or if they provide more than half of their own support. About 15% of undergraduate students are married. College students who are 24 years old or older may also qualify. More than 40% of undergraduate students are 24 years old or older.

Invest $500 to get $2500 in a week completely legit

College students can still claim the $1,200 stimulus checks from the CARES Act in addition to the new $600 stimulus checks, if they are eligible.

Increase in the Maximum Pell Grant

The maximum Federal Pell Grant has been increased to $6,495 for the 2021-2022 academic year.

Eligibility criteria will be pegged to a multiple of the poverty line starting with the 2023-2024 academic year. Students will be eligible for the maximum Pell Grant if they and their parents/spouse, as applicable, are not required to file a federal income tax return or if their adjusted gross income (AGI) is less than 175% to 225% of the poverty line. The higher threshold is reserved for households involving a single parent.

FAFSA Simplification

The legislation simplifies the Free Application for Federal Student Aid (FAFSA) starting with the 2023-2024 academic year. The new FAFSA reduces the number of questions on the form by two-thirds, from 108 questions to about three dozen questions. Follow me on Twitter. Check out my website or some of my other work here.

Mark Kantrowitz

I am Publisher of PrivateStudentLoans.guru, a free web site about borrowing to pay for college. I am an expert on student financial aid, the FAFSA, scholarships, 529 plans, education tax benefits and student loans. I have been quoted in more than 10,000 newspaper and magazine articles about college admissions and financial aid. I am the author of five bestselling books about paying for college and have seven patents. I serve on the editorial board of the Journal of Student Financial Aid, the editorial advisory board of Bottom Line/Personal, and am a member of the board of trustees of the Center for Excellence in Education. I have previously served as publisher of Savingforcollege.com, Cappex, Edvisors, Fastweb and FinAid. I have two Bachelor’s degrees in mathematics and philosophy from the Massachusetts Institute of Technology (MIT) and a Master’s degree in computer science from Carnegie Mellon University (CMU)

University of California Television (UCTV)

How to pay for college is a pressing question for all applicants from the class of 2020. COVID-19 has caused financial uncertainty and many are having to rethink their plans. Jodi Okun, an expert in financial aid, joins Steven Mercer to talk about how the pandemic is impacting financial aid awards, what to do if your family’s financial situation has changed, and how to plan for the future in uncertain times. [Show ID: 35963] More from: STEAM Channel (https://www.uctv.tv/steam) UCTV is the broadcast and online media platform of the University of California, featuring programming from its ten campuses, three national labs and affiliated research institutions. UCTV explores a broad spectrum of subjects for a general audience, including science, health and medicine, public affairs, humanities, arts and music, business, education, and agriculture. Launched in January 2000, UCTV embraces the core missions of the University of California — teaching, research, and public service – by providing quality, in-depth television far beyond the campus borders to inquisitive viewers around the world. (https://www.uctv.tv)

Stimulus Check Qualification Rules Could Change With a Second Payment

Congress is scrambling to piece together another relief package before the end of the year that would, if some legislators have their say, include a second economic stimulus check for individuals and families who meet the requirements.

Sen. Bernie Sanders, an independent, and Sen. Josh Hawley, a Republican, are looking to modify a $908 billion plan with an amendment that would authorize a second check for up to $1,200. The unamended proposal doesn’t include another direct payment. If Sanders and Hawley’s amendment is successful, the new payment would likely follow the same outlines of the first stimulus check for speed and simplicity, but even minor changes could have a significant impact for millions.

Another new proposal, this time from the White House, would provide $600 apiece for each qualifying adult and child, Though it’s less likely we’ll see this proposal become law, if it did it would clearly affect how much money a household could get, by halving the share per qualifying adult and increasing it by $100 per eligible child dependent.

Even if no stimulus check is approved in 2020, the discussions happening now could impact the stimulus check conversation in early 2021. There’s clearly enough support for a second round of aid before there are enough available doses of the COVID-19 vaccine to inoculate the US population.

Read on for more information about what may happen to stimulus eligibility now. We update this story often.

How the qualifications could change with a new bill

While many members of Congress agree on the need for more aid, they differ on the specifics, and the two sides continue to discuss who needs assistance and how much to spend. Based on proposals that’ve been on the table this fall, here’s what lawmakers could do (or have already done):

Update the definition of a dependent: The CARES Act capped eligible dependents at kids age 16 and younger. One proposal this summer expanded the definition to any dependent, child or adult, you could claim on federal taxes. That means families with older kids or older adults at home could potentially see $500 more in their check total per individual if that proposal is adopted.

money-dollars-bills-sock-american-flag — If the definition of a dependent changes, your family could benefit. Angela Lang/CNET

Raise the amount of money per child dependent: One White House proposal from October would’ve kept the definition of a child dependent used in the CARES Act but increased the sum per individual to $1,000 on the final household check. (Based on that, here’s how to estimate your total stimulus money and here’s the IRS’ formula for families.)

The White House’s new Dec. 8 proposal would reportedly raise the sum for each qualifying child to $600, up from $500 in the CARES Act.

Stop seizing overdue child support: The Democrats this summer pushed to let a parent who owed child support receive a payment; the original CARES Act allowed the government to redirect payments to cover overdue support.

Send checks to people who are incarcerated: After months of back and forth, the IRS is sending checks to those who are incarcerated and eligible for a payment. A Republican plan this summer would’ve excluded the payments.

Include noncitizens: The CARES Act made a Social Security number a requirement for a payment. Other proposals would’ve expanded the eligibility to those with an ITIN instead of a Social Security number because they’re classified as a resident or nonresident alien. A Republican plan this summer would’ve excluded those with an ITIN.

Who could qualify for a second stimulus check

Qualifying group	Likely to be covered by the final bill
Individuals	An AGI of less than $99,000 (Same as CARES)
Head of household	An AGI of less than $146,500 (Same as CARES)
Couple filing jointly	An AGI less than $198,000 (Same as CARES)
Dependents of any age	No limit (HEALS proposal; up to 3 in Heroes)
US citizens living abroad	Yes, same as CARES
Citizens of US territories	Likely, with payments handled by each territory’s tax authority (CARES)
SSDI and tax nonfilers	Likely, but with an extra step to file (more below)
Uncertain status	Could be set by court ruling or bill
Incarcerated people	Excluded under CARES through IRS interpretation, judge overturned
Undocumented immigrants	Qualifying “alien residents” are currently included under CARES
Disqualified group	Unlikely to be covered by the final bill
Noncitizens who pay taxes (ITIN)	Proposed in Heroes, unlikely to pass in Senate
Spouses, kids of ITIN filers	Excluded under CARES, more below
People who owe child support	Included in Heroes proposal, but excluded under CARES

Would the income limits be similar with another check?

Under the CARES Act, here are the income limits based on your adjusted gross income for the previous year that would qualify you for a stimulus check, assuming you met all the other requirements. (More below for people who don’t normally file taxes.) With the amendment proposed by Sanders and Hawley on Dec. 10, the requirements guidelines would follow those set out in the CARES Act.

You’re a single tax filer and earn less than $99,000.
You file as the head of a household and earn under $146,500.
You file jointly with a spouse and earn less than $198,000 combined.

What role do my taxes play in how much I could get? What if I don’t file taxes?

For most people, taxes and stimulus checks are tightly connected. For example, the most important factor in setting income limits is adjusted gross income, or AGI, which determines how much of the total amount you could receive, be it $600 or $1,200 for individuals and $1,200 or $2,400 for married couples (excluding children for now).

Our stimulus check calculator can show you how much money you could potentially expect from a second check, based on your most recent tax filing and a $1,200 per person cap. Read below for your eligibility if you don’t typically file taxes.

coins-measuring-spoons — How much stimulus money you could get depends on who you are. Angela Lang/CNET

What should retired and older adults know?

Many older adults, including retirees over age 65, received a first stimulus check under the CARES Act, and would likely be eligible for a second one. For older adults and retired people, factors like your tax filings, your AGI, your pension, if you’re part of the SSDI program (more below) and whether the IRS considers you a dependent would likely affect your chances of receiving a second payment.

If I share custody or owe child support, how does that affect eligibility?

Due to a specific rule, if you and the other parent of your child dependent alternate years claiming your child on your tax return, you may both be entitled to receive $500 more in your first stimulus check, and in the second if that rule doesn’t change.If you owe child support, your stimulus money may be garnished for arrears (the amount you owe). https://playlist.megaphone.fm/?e=CBS4695642448&light=true

I haven’t submitted my federal tax return for at least two years. Can I still get money?

People who weren’t required to file a federal income tax return in 2018 or 2019 may still be eligible to receive the first stimulus check under the CARES Act. If that guideline doesn’t change for a second stimulus check, this group would qualify again. Here are reasons you might not have been required to file:

You’re over 24, you’re not claimed as a dependent and your income is less than $12,200.
You’re married filing jointly and together your income is less than $24,400.
You have no income.
You receive federal benefits, such as Supplemental Security Income or Social Security Disability Insurance. See below for more on SSDI.

With the first stimulus check, nonfilers needed to provide the IRS with some information before they could receive their payment. (If you still haven’t received a first check even though you were eligible, the IRS said you can claim it on your taxes in 2021.) This fall, the IRS attempted to contact 9 million Americans who may’ve fallen into this category but who haven’t requested their payment. Those in this group can claim their payment on next year’s taxes.

I’m part of the SSI or SSDI program. Am I eligible to get a stimulus check?

Those who are part of the SSI or SSDI program also qualify for a check under the CARES Act. Recipients wouldn’t receive their payments via their Direct Express card, which the government typically uses to distribute federal benefits, but through a non-Direct Express bank account or as a paper check. SSDI recipients can file next year to request a payment for themselves and dependents.

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For more, here’s what we know about the major proposals for another stimulus package. We also have information on unemployment insurance, what you can do if you’ve lost your job and what to know about evictions.

Coronavirus updates

First published on June 25, 2020 at 4:15 a.m. PT.Budgeting Taxes Politics Personal Finance How To

By: Clifford Colby, Julie Snyder, Katie Conner

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Tag: taxrelief

Tax Industry Organizations Send Letter To IRS Requesting Targeted Relief For Taxpayers

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IRS Provides Tax Relief for Victims of Hurricane Ida

What are the extended tax and payment deadlines for victims of Hurricane Ida?

What do I need to do to claim the tax extension?

Do surrounding areas outside of Louisiana qualify for an extension?

How can I claim a casualty and property loss on my taxes if impacted?

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Rich Americans Hunt for Ways Around Tax Hikes They Were Warned About

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College Funding Changes In The Pandemic Relief Bill

Student Loan Relief

Changes in College Tuition Tax Breaks

New Funding for Higher Education Emergency Relief Fund

Most College Students Remain Ineligible for Stimulus Checks

Increase in the Maximum Pell Grant

FAFSA Simplification

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Stimulus Check Qualification Rules Could Change With a Second Payment

How the qualifications could change with a new bill

Who could qualify for a second stimulus check

Would the income limits be similar with another check?

What role do my taxes play in how much I could get? What if I don’t file taxes?

What should retired and older adults know?

If I share custody or owe child support, how does that affect eligibility?

I haven’t submitted my federal tax return for at least two years. Can I still get money?

I’m part of the SSI or SSDI program. Am I eligible to get a stimulus check?

Coronavirus updates

Like this:

Share this:

Like this:

What are the extended tax and payment deadlines for victims of Hurricane Ida?

What do I need to do to claim the tax extension?

Do surrounding areas outside of Louisiana qualify for an extension?

How can I claim a casualty and property loss on my taxes if impacted?

Share this:

Like this:

Epic Shift

Tax Strategies

See also

Share this:

Like this:

Student Loan Relief

Changes in College Tuition Tax Breaks

New Funding for Higher Education Emergency Relief Fund

Most College Students Remain Ineligible for Stimulus Checks

Increase in the Maximum Pell Grant

FAFSA Simplification

Share this:

Like this:

How the qualifications could change with a new bill

Who could qualify for a second stimulus check

Would the income limits be similar with another check?

What role do my taxes play in how much I could get? What if I don’t file taxes?

What should retired and older adults know?

If I share custody or owe child support, how does that affect eligibility?

I haven’t submitted my federal tax return for at least two years. Can I still get money?

I’m part of the SSI or SSDI program. Am I eligible to get a stimulus check?

Coronavirus updates

Share this:

Like this: