Covid-19 Tax Updates For Individuals


Beware of Scammers!!

The IRS does NOT call or email asking you to verify or provide your financial information. Do NOT click on any links in an email that looks like it is from the IRS and definitely do NOT click on any attachments.

Seniors are the most vulnerable to these scams, so please educate your loved ones to be extra vigilant about protecting their personal and financial information.

To learn more, visit https://bit.ly/2XEr5Oy and check the IRS website regularly for updates.

Extended Filing and Payment Deadlines

For more information on tax deadlines and extensions visit these links:

IRS

Pennsylvania Department of Revenue

NJ Division of Taxation

For information on local tax deadlines and extensions, please check the website of your local tax authority.

2020 RMD Waiver

Retirees will get a benefit from the coronavirus stimulus package, also known as the CARES act, in the form of a waiver from taking their required minimum distribution from retirement accounts for 2020. The waiver applies to anyone with an RMD due in 2020.

This not only allows for the deferral of income tax, but also provides help for retirees who would be forced to withdraw from their retirement accounts while the stock market is in a downturn. The RMD waiver also provides a planning opportunity for those who may choose to take a retirement distribution in order to get the benefit of a low-income tax bracket.

Low market values may also make this a prime opportunity to convert your traditional IRAs into Roth IRAs. This is an excellent opportunity for tax planning. Contact your tax advisor at Diamond & Associates, PC CPAs for more information.

Economic Stimulus Checks

The second comprehensive Coronavirus Relief Bill signed into law on December 28, 2020 includes additional stimulus payments. Individual taxpayers can expect $600 stimulus checks ($1,200 for couples) if their income meets certain thresholds and an additional $600 per dependent child. Income thresholds are as follows:

    • $75,000 – Single taxpayers
    • $112,500 – Taxpayers filing as Head of Household
    • $150,000 – Joint taxpayers

To check your payment status and for further information on Economic Impact Payments, check the IRS website.

Expanded Unemployment Insurance

The December 27, 2020 Coronavirus Relief legislation includes expanded Unemployment Insurance benefits. The bill provides an additional $300 per week for eligible workers receiving unemployment benefits for weeks after December 26, 2020 through March 14, 2021, extending federal jobless benefits from a maximum of 39 to 50 weeks. Coverage also includes an additional $100 per week in unemployment benefits for independent contractors and freelancers.

Visit the PA Office of Unemployment Compensation website for employees impacted by COVID-19.

For more information on the specific terms regarding the Covid-related Pandemic Emergency Unemployment Compensation (PEUC) program in Pennsylvania, visit the state’s website.

For the PEUC program in New Jersey see the Division of Unemployment Insurance Benefit Extensions page.