Today was the scheduled regular Tax filing date. Thankfully the Federal Government, on March 21, 2020 announced we all have received a 90 day delay on our REGULAR Federal Income tax…
From the IRS announcement
“Taxpayers can also defer federal income tax payments due on April 15, 2020, to July 15, 2020, without penalties and interest, regardless of the amount owed. This deferment applies to all taxpayers, including individuals, trusts and estates, corporations and other non-corporate tax filers as well as those who pay self-employment tax.”
If you have a refund and made less or the same in 2018 as 2019, then you can file. As a planning reminder… about 90% of the population is to receive a Recovery Rebate of $1200 + $500 per child under age 17… BUT those are phased out…
The applicable AGI phase out threshold amounts are as follows:
- Married Joint: $150,000
- Head of Household: $112,500
- All Other Filers: $75,000
If you are in the phase out range and if you have not filed your 2019 return, check to see which is lower, your 2018 or 2019, and if your 2018 is lower, do not file your 2019. Conversely, if your 2019 is lower file it immediately! You likely will not have to pay until the extended deadline of July 15, 2020 (Double check with your Tax Professional!)
Back to the Regular Extension Update
This nice Q and A from Turbo Tax
- Do I need to file an extension to file past April 15? No, you do not need to take any action. The July 15 extension applies to all taxpayers automatically.
- Will the extension of the tax deadline delay my tax refund? No, the IRS expects to continue to process refunds as normal but encourages all taxpayers to file now.
- Do I have more time to contribute to my IRA? Yes, you now have until July 15, to make a 2019 contribution to your IRA.
- Will the deadline for my state taxes also be extended? A majority of states are conforming to the new July 15 tax deadline. However, some states have different deadlines and guidance. To find out the deadline in your state, click here
States with Challenging Time Frames at this time
Most all states but the following are either non state income tax states or are following the same extension date ….(no idea why any state would not follow the rest of the country … digressing)
| Hawaii |
July 20 |
| Idaho |
June 15 |
| Iowa |
July 31 |
| Mississippi |
May 15 |
| New Hampshire |
June 15 |
| Virginia |
May 1 to file; June 1 to pay |
From AICPA for more exact information.
Again … especially when dealing with the state information, this is changing quickly and may change again, so please check your respective state taxing authority.
Bottom line most have some type of relief, although the calendar complicates in certain states!
Have a Great “Updated Tax Extension Reminder” Day!
John A. Kvale CFA, CFP
Founder of J.K. Financial, Inc.
A Dallas Texas based fee only
Financial Planning Total Wealth
Management firm.
32.862841
-96.808100
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April 2020 Podcast Video, Financial Planning and Capital Market Update – By John Kvale
Hello and Welcome to our April 2020 Financial Planning and Capital Market Update!
If you are too busy to read, feel free to listen as we describe our post and thoughts in friendly podcast audio format as well as Video!
Newbies –
We like to articulate our thoughts and review on a Monthly basis our Financial Planning Tips, Capital Markets and current events!
Hope you enjoy!
April – 2020 Video (YouTube)
Financial Planning Tip –
Care Act and More Care Act
Thank you all for reading and sharing Posts… we deviated from the usual M-W-F schedule due to the massive amount of information and changes associated with the Care Act… again, thanks for your kind words, sharing and your time!
Capital Market Comments – SAME AS LAST MONTH
Unknown that will eventually be Known
Unique to this slowdown is that it is needed and self designed.
In the prior two slow downs, the economy was stretching the limits of the system and slowed with many other outside items adding to the decrease.
This event, while unknown at the moment, will be very measurable, likely more than any recent slowdown.
The speed of the slowdown may lead to the speed of the recovery.
The stimulus being put into the system is large by any measure and will eventually gain traction.
Have a Great Day – Talk to you at the end of May!
John A. Kvale CFA, CFP
Founder of J.K. Financial, Inc.
A Dallas Texas based fee only
Financial Planning Total Wealth
Management firm.
www.jkfinancialinc.com
street-cents
-96.808100
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Posted in Investing/Financial Planning, Market Comments, Monthly Review, Podcast, Tax Related, Video
Tagged Capital Markets, Tax Extensions