Relief for Individuals
- Amounts are based on 2019 tax returns (if they have been filed). If not, they will be based on 2018 tax returns.
- Single Taxpayers will receive $1,200 each. This is reduced for individuals making over $75,000 and will be completely phased out for individuals making over $99,000.
- Head of Household Taxpayers will receive $1,200 each. This is reduced for individuals making over $112,500 and will be completely phased out for individuals making over $135,500.
- Married Filing Jointly Taxpayers will receive $2,400. This is reduced for couples making over $150,000 and will be completely phased out for couples making over $198,000.
- Taxpayers who claimed children under 17 as dependents will receive an additional $500 per child. These tax rebates may also be reduced based on taxpayer income.
- Individuals who had social security only income and did not have any other tax liabilities, or did not even file a tax return, will still receive a check for $600 each.
- These stimulus checks are designed as tax rebates for 2020. The checks will be based on a past return (either 2018 or 2019), but will be reconciled with your 2020 income. That means that you may receive a reduced rebate check now based on 2019 income, but when you file your 2020 return you may get an additional refund.
- The tax rebates will operate very much like the advance premium tax credit for health care premiums.
- To qualify, taxpayers and their children need to have social security numbers.
- How do I get this? Just wait for the check, or direct deposit from the IRS.
- Required minimum distributions (RMDs) are waived for 2020.
- Distributions from retirement accounts are allowed for COVID-19 losses – up to $100,000.
- Normally if you take out an early distribution (prior to age 59 1/2) you would pay an additional 10% penalty, and the full amount would count towards ordinary income.
- This provision waives the 10% penalty, and you can include the income over 2020, 2021 and 2022 instead of claiming it all in 2020.
- You can also repay the distributions back into your retirement plan and not include it in income.
Tax Return Filing Deadline Extension
- All individual taxpayers have been given an automatic extension to file their 2019 tax return until July 15, 2020.
- All individual taxpayers have been given an automatic extension to PAY their 2019 taxes until July 15, 2020.
- How do I get this? Everyone gets it.
- If you were employed and are now unemployed, you can claim unemployment benefits. Typically, you are required to wait one week before making a claim. The new law changes this so you can get unemployment benefits immediately for up to 39 weeks of pay.
- The new bill also allows payments to include an additional $600 per week.
- Unemployment claims are higher than they have ever been. It may take a while to get through to a real person.
- How do I get this? You’ll need to apply online.
- Student loan payments will be suspended for three months.
- Charitable contributions up to $300 can be deducted “above the line”.
- This means that you would not need to itemize your deductions in order to claim a deduction.
- Anything over $300 would still need to be part of your itemized deductions.
- HSA accounts can now be used to pay for over the counter medication.
- However, it may be more beneficial to leave your HSA funds alone if possible since they have the potential to grow tax-free for years, possibly decades, and then they will be available for major medical expenses.
IMPORTANT DISCLOSURES: Please remember that past performance may not be indicative of future results. Different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment, investment strategy, or product (including the investments and/or investment strategies recommended or undertaken by Bogart Wealth, LLC (“Bogart Wealth”), or any non-investment related content, made reference to directly or indirectly in this commentary will be profitable, equal any corresponding indicated historical performance level(s), be suitable for your portfolio or individual situation, or prove successful. Due to various factors, including changing market conditions and/or applicable laws, the content may no longer be reflective of current opinions or positions. Moreover, you should not assume that any discussion or information contained in this commentary serves as the receipt of, or as a substitute for, personalized investment advice from Bogart Wealth. Please remember to contact Bogart Wealth, in writing, if there are any changes in your personal/financial situation or investment objectives for the purpose of reviewing/evaluating/revising our previous recommendations and/or services, or if you would like to impose, add, or to modify any reasonable restrictions to our investment advisory services. Bogart Wealth is neither a law firm nor a certified public accounting firm and no portion of the commentary content should be construed as legal or accounting advice. A copy of the Bogart Wealth’s current written disclosure Brochure discussing our advisory services and fees continues to remain available upon request.