Income Tax

Americans have received conflicting information on when they will receive stimulus checks due to the economic fallout from the coronavirus pandemic. But there’s good news: Checks will be hitting their bank accounts soon. 

Automatic payments are set to begin next week. Eligible taxpayers who filed tax returns for either 2019 or 2018 and chose direct deposit for their refund will automatically receive a stimulus payment of up to $1,200 for individuals or $2,400 for married couples and $500 for each qualifying child, the IRS said Friday. 

What if I did not file a return in 2018 or 2019 ?

The non-filer tool provides a free option designed for people who don’t normally file a tax return, including those with too little income to file. The IRS said stimulus payments will be distributed to most Americans starting next week.

Here is the link

https://www.irs.gov/coronavirus/non-filers-enter-payment-info-here

Who is eligible for the Economic Impact Payment?

U.S. citizens or resident aliens who:

• Have a valid Social Security number,
• Could not be claimed as a dependent of another taxpayer, and
• Had adjusted gross income under certain limits.

The Treasury Department and the Internal Revenue Service are providing special tax filing and payment relief to individuals and businesses in response to the COVID-19 Outbreak. The filing deadline for tax returns has been extended from April 15 to July 15, 2020. The IRS urges taxpayers who are owed a refund to file as quickly as possible. For those who can’t file by the July 15, 2020 deadline, the IRS reminds individual taxpayers that everyone is eligible to request an extension to file their return.

State tax returns

California deadline – July 15, 2020

Other states please check with your state for deadline information.

New California tax filing and tax payment deadline has been extended from April 15 to July 15, 2020 (due to COVID-19 pandemic).

This extension is automatic you don’t have to apply for it. Make sure not to wait until the last day. The faster you file the longer you have to make payments on it without having to pay interest. After July 15, 2020 you would have to pay interest if you owe money to the IRS.

If you have any questions about filing your taxes here at Yessenia’s give us a Call and we can help you.

Officials are still urging people to file by April 15, especially if they are expecting a refund. In the same press conference, Mnuchin said the Trump administration wants to get cash payouts to Americans unrelated to taxes within the next two weeks.

Taxpayers and small businesses that traditionally face an April 15 tax deadline will be allowed more time to pay their taxes due, until the new deadline of July 15, 2020, with no penalties or interest charges. All individual U.S. taxpayers qualify for this extension.

You should still file your taxes before April 15, 2020. If you have any questions call Yessenias Income Tax at 818 899-9617

What is an ITIN or itin number?

An Individual Taxpayer Identification Number (ITIN) is a tax processing number issued by the U.S. Internal Revenue Service (IRS). An ITIN consists of nine digits, beginning with the number nine (i.e., 9XX-XX-XXXX). Since 1996, the IRS has issued ITINs to taxpayers and their dependents who are not eligible to obtain a Social Security number (SSN).

As a result of a new law and as discussed below, many ITINs will expire and need to be renewed.

Why does the IRS issue ITINs?

All wage earners—regardless of their immigration status—are required to pay federal taxes. The IRS provides ITINs to people who are ineligible for an SSN so that they can comply with tax laws. You can apply for your itin number here at Yessenias.

Who uses an ITIN?

Taxpayers who file their tax return with an ITIN include undocumented immigrants and their dependents as well as some people who are lawfully present in the U.S., such as certain survivors of domestic violence, Cuban and Haitian entrants, student visa–holders, and certain spouses and children of individuals with employment visas. As of August 2012, the IRS had assigned 21 million ITINs to taxpayers and their dependents.

Once a person who has been issued an ITIN is eligible to apply for an SSN, the person may no longer use the ITIN.

What is an ITIN used for?

ITINs are issued by the IRS specifically as a means to pay federal taxes. While the IRS issues them solely for this purpose, ITINs may sometimes be accepted for other purposes, such as for opening an interest-bearing bank account, in employment dispute settlements, or for obtaining a mortgage.