Helpful miscellaneous articles
regarding our retirement plan and planning.
Like you, I review my retirement nestegg and plan from time to
time. Recently, I went though some
continued education for some credentials I maintain and it occurred to me that
we all could use a review about these issues.
So with your help, we will share and post articles and info that may be
helpful and of interest to many of you in this section.
Tax
Day is now July 15. Why you should get your return in even sooner
PUBLISHED FRI, MAR 20 202012:05 PM EDTUPDATED FRI, MAR 20
20202:39 PM EDT
KEY
POINTS
·
Treasury Secretary
Steven Mnuchin tweeted on Friday that the tax filing deadline would be pushed
out to July 15. Taxes owed for 2019 and the first quarter of 2020 are due then,
too.
·
Need cash now? Get
your return in as soon as possible so you can get your refund.
·
The IRS has processed
59.2 million refunds as of March 13, issuing an average check of $2,973.
You now have until July
15 to file your taxes.
However, if you’re
expecting a refund, finish up your 2019 tax return now.
Treasury Secretary
Steven Mnuchin tweeted on Friday that the tax filing deadline would be extended
to July 15.
At @realDonaldTrump’s direction, we are moving Tax Day from April
15 to July 15. All taxpayers and businesses will have this additional time to
file and make payments without interest or penalties.
The announcement places
the due date for 2019′s income tax returns on the same day as the recently extended
deadline for tax payments.
While accountants and
tax preparers are celebrating the extra time they get to file returns for their
clients, one thing remains clear: If you’re expecting a tax refund, get your
tax return out the door immediately.
Even Mnuchin emphasized
this point on Friday in another tweet.
I encourage all
taxpayers who may have tax refunds to file now to get your money.
Indeed, the IRS has
received 76.2 million individual income tax returns as of March 13. Of these,
59.2 million filers received refunds, with the taxman sending an average check
of $2,973.
“Everyone still wants
their return,” said Dan Herron, CPA and principal of Elemental Wealth Advisors
in San Luis Obispo, California. “People need money. We’re still cranking 11 to
12 hours a day to get it done.”
Taxpayers often depend
on that money to pay down credit card balances and to shore up their
savings accounts.
That check from Uncle
Sam is even more important now, as individuals and businesses are reeling from
the economic impact of coronavirus.
Congress is still
hashing out the details of a cash
infusion, as workers brace
themselves for the prospect of layoffs and furloughs amid recession worries.
Getting a refund of your
overpayment in taxes from last year might go a long way in uncertain times.
“I would think the person
who makes $30,000 a year and needs the refund probably needs it faster than
those who don’t solely rely on the refund,” Herron said.
WATCH NOW
VIDEO00:01
Watch CNBC’s full interview with Treasury
Secretary Steven Mnuchin
While it’s expected that
the states will follow the federal government’s lead on changing the tax
deadline, you should still check in with your state authority and your tax
professional.
“It’s going to be
challenging because the states aren’t all consistent,” said Eileen Sherr,
senior manager for tax policy and advocacy at the American Institute of CPAs.
“If you have income in different states, you’ll have to follow what each state
does.”
IRA contributions for 2019
One issue that’s still
up in the air is whether the deadlines for 2019 contributions to individual
retirement accounts and health savings accounts have also been pushed back to
July 15.
You have until the due
date of your tax return, normally April 15, to contribute to the account and
have it apply to the prior year.
It’s not immediately
clear whether the Treasury is officially pushing back the date for these
contributions. However, if you have the flexibility in your budget and you’re
wrapping up your return, you may as well save in those accounts now.
Traditional IRA
contributions and HSA contributions are deductible on your tax return. Putting
money in your IRA could also make you eligible for the saver’s credit, depending on your adjusted gross income.
“Do it before April 15
just in case, especially if you’re going to lower your tax liability and wind
up getting a tax refund,” said Lisa Greene-Lewis, CPA and tax expert at
TurboTax. “It’s a win all over.”
(As with any of these informative articles,
anyone who needs someone to talk to about
this
very subject contact me and I can direct you to a knowledgeable advisor).
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Full post disclaimer in left column. PCN Home Page is located at: http://pcn.homestead.com/home01.html
No comments:
Post a Comment