I hope you’re hanging in there. We’re LOCKED in, helping our Chattanooga clients, and I have a bunch of things to share with you today, based on recent activity.
I will say that, between helping clients, and the astonishing rapidity of change, I’m not always able to put up new posts immediately, at the moment of update. But you’ll continue to hear from me more regularly, as we all process this “new normal” situation in our country.
Frankly, we’ve all never experienced anything like this situation, and neither has my team. I have gotten so many emails from our Chattanooga clients and friends, with questions and looking for help … it’s frankly unprecedented.
But these are the times we’re in.
With so much noise, I’ve found myself tuning out “new” voices, and trying to focus my media and news consumption only to be from trusted sources. There are just so many rumors, and so many COVID-19 updates flying around.
I do suggest you do the same. Allow us to help guide you through this. These are NOT the times to navigate these changes by yourself.
In fact, before I get into the COVID-19 updates, let me say this:
An Invitation …
Because I have received so many emails and messages in response to my notes last week, I want to encourage you: feel free to forward these strategy notes to your friends. AND, if they want our help in navigating all of the upcoming credits, changes, and economic stimulus, have them reach out.
We are still taking on new clients, and helping people through this remotely.
Now, the updates:
IRS Deadline update: Federal FILING and payment deadlines are moved to July 15th, thankfully. Now, no extension is required to wait until that date. This affects estimated payments, and “tax due” payment due dates.
If you have a refund coming, let’s try to get this handled ASAP, as those are still rolling out to our Chattanooga clients.
Economic Stimulus Package:
As of this writing, Congress has not finalized their bill. Once they do so, you will hear from me with ALL of the important details.
But as we’ve been watching, there are a few things that seem to be emerging, and are likely to be included when it does pass (I predict it will be soon, perhaps early this week). Again, this is not definitive yet, and subject to change:
- Direct checks to families and individuals
Right now, they are planning to use 2018 tax return data (which, if you have NOT filed that, and you want these, let’s help you do that!). They will use the address they currently have on file for you, so if you have had any status changes — like a divorce or a new child, recent address change, etc. — they might be using the old info. I’m not yet sure how they will clean that up, but it is something that will probably be addressed.
These checks will be somewhere in the range of $1,000-$1,200 PER adult, and $500-$700 per child. The income phaseouts being currently discussed is $75K AGI for individual, and $150K AGI for married filing jointly.
There is conversation that these checks will be sent out more than once, with the first being in the next few weeks. We’ll keep you posted.
- Loan Relief
The President has ASKED (not demanded) that those with student loans be given two months relief without payment or interest.
If you have a federally subsidized loan (HUD, Fannie/Freddie loans), they are looking at a three month stay on payments with no effect on credit scores for Fannie/Freddie loans, and a similar 12 month stay on payments for loans on a HUD-owned property.
Also, there was a misreported rumor going around that the President said that there would be “no evictions or repossessions” for 12 months — this is only true for HUD-owned properties.
- New working-from-home write-offs
There are additional deductions and credits being considered for those MANY of us who are working from home now, but those are still pending.
These updates are coming in fast and furious, and you’ll hear from me more in the future.
Do let us know if we can help.
John and Wanda King
U S Tax Solutions
And again, to reiterate my “COVID Action Plan” for my Chattanooga clients:
1) Don’t marinate in other people’s panic. Be mindful of your social media consumption.
2) Get financially and logistically prepared for the worst.
3) Make sure you have some ready, liquid assets, if you are able. (I.e., cash in the bank, and in hand.)
4) Set aside plans for any big spending until the dust settles — but especially look out for your small business owner friends and vendors.
Much more to come in the days ahead.