Tax Relief, IRS & Stimulus Checks
WHAT TO DO IF YOU NEED RELIEF FROM YOUR RENT PAYMENTS
These are difficult financial times. You are not alone if you are worried about your family finances and struggling to pay bills. The good news is that the government recognizes that most of us are being impacted by the coronavirus (COVID-19) pandemic, physically and financially. Therefore the government is helping with tax stimulus programs (to put some extra money into people’s pockets) and with tax relief programs (to take less money away in taxes). Here are some resources you can use if you need relief from your tax bill.
The main thing to know is you are not dealing with the fall-out from the coronavirus (COVID-19) pandemic alone and you can get help. You should know and consider the following:
The federal government (the IRS) and many state governments extended the 2020 tax filing deadlines. Further extensions are often available if you make a filing to request them, so it is important to consult with a tax professional and regularly check the IRS and your state’s websites for information;
Understand the federal government’s tax stimulus package; the federal government approved sending stimulus checks to taxpayers in 2020; whether you are eligible for a check and how much you were supposed to receive depends on your income and your household income (generally speaking, you get a reduced check the more money you make). If you have not received a direct deposit, you should have received a paper check if you are eligible. It is a good idea to visit the IRS’s website regarding stimulus payments, update your contact information, and submit an inquiry if you should have received a check but did not; you may do so at https://www.irs.gov/coronavirus/economic-impact-payments;
Understand how big your check should be: people with an adjusted gross income below $75,000 (or $150,000 for a married couple) will receive the maximum amount: $1,200 per adult or $2,400 for a married couple. In addition, people are eligible for an additional $500 per child under 17 in the household. If your adjusted gross income is greater than this, your check will decrease in proportion to the additional amount you make, and if you make more than $98,000 as an individual or $198,000 as a married couple, you will not receive a stimulus check;
Consider consulting a tax attorney or other tax professional; tax issues (even calculating your adjusted gross income) are complicated, and the amount you need to pay depends on the answers to several complicated questions. If you are facing the possibility of falling behind on your taxes or are facing a large unexpected tax bill, you can often negotiate a repayment plan. In this situation, when negotiation with the government is critical to protecting your financial well-being and your assets, an experienced tax attorney can help. This is especially important right now, during the coronavirus (COVID-19) pandemic, as tax attorneys and other tax professionals are best positioned to explain what programs you might be eligible for and what tax relief is available to you.
The main thing to know is you are not alone, you might well be entitled to tax relief or a stimulus check, and that you can consult with a professional for more help with your taxes.
Sometimes you need to consult with an attorney about your financial situation, your tax liability and your rights. LawChamps can help. We have experienced lawyers nationwide; they can talk with you to better understand your situation, make a plan, and help secure a brighter financial future and peace of mind for you and your family.