COVID-19 Tax Updates

Tax Deadlines
The deadline to file tax returns has been automatically extended to July 15, 2020. The extension also applies to payments normally due April 15th, such as tax return balances due and quarterly estimated tax payments.

CARES Act Provisions
The CARES Act was recently signed into law to provide financial relief to those impacted by COVID-19. One of the most discussed provisions is the tax rebates. 

  • To receive the rebate, taxpayers must have valid SSNs and can not be a dependent of another taxpayer. There are very few exceptions to this rule.

  • You will not have to pay this rebate back.

  • Rebates will be sent to taxpayers in the following amounts:

    • $1,200 (Single, Married filing Separately, Head of Household)

    • $2,400 (Married filing Jointly)

  • Rebates will be reduced as your adjusted gross income (AGI) exceeds applicable thresholds. Rebates are phased out to $0 when AGI exceeds the following amounts:

    • Single or Married Filing Separately - $99,000

    • Head of Household - $146,500

    • Married filing Jointly - $198,000

  • There is an additional $500 provided for each dependent under 17. 

  • Rebates will be calculated based on a taxpayer's 2019 filed tax return. If the taxpayer has not filed the 2019 return, the rebate calculation will be based on the filed 2018 tax return.

    • If there are taxpayers that only receive Social Security or Veterans Disability Benefits AND do not file a return, the amount will be based on information provided by Social Security.

  • Rebates will not be reduced by back taxes owed by a taxpayer. However, it will be reduced if a taxpayer owes back child support.

  • The IRS will attempt to send the rebate electronically to the account number used on the last tax return. If the account is closed, a check will be issued to the last address on record.

  • A firm timeline has not yet been established as to when checks will be distributed.

Additional guidance is to be provided by the IRS. Updates can be found here: