The IRS has released it's new financial stimulus tracking tool, which allows you to track your economic impact payment and update your direct deposit information. Please check out the following link for information: https://www.irs.gov/coronavirus/get-my-payment
DELAYED FILING DATES:
Personal 1040 tax return: July 15, 2020.
Personal 1040 extension deadline: July 15th for an extension to October 15th. Please note that payment deadline is NOT extended. In order to avoid penalties and interest, payment is still due by July 15th.
Estimated tax payments: 1st payment is now due July 15th. The remaining quarterly payments are still due by the original dates (June 15th, September 15th, and January 15th) Please note that the 2nd quarterly payment is still due on June 15th.
HSA Contribution deadline: July 15th. Please make a notation on the payment that it is a 2019 contribution.
CHANGES IN INVESTMENT CONTRIBUITONS/ DISTRIBUTIONS:
The deadline to contribute to your IRA has been extended to July 15th (or 1040 filing date, whichever comes first.) Please make a notation on the payment that it is for a 2019 contribution.
Required minimum distributions (RMDs) have been waived for all retirement accounts with the exception of defined benefit plans. This includes RMDs due in 2020, but attributable to 2019. This is not limited to those directly affected by COVID-19. Any individual who has already taken a withdrawal in 2020 to satisfy what would have been the RMD may now transfer what was withdrawn back into the IRA within a 60 day rollover period of taking the withdrawal. If more than 60 days has elapsed since the withdrawal was taken, this rollover will not be able to be made without a waiver of the 60 day rollover period.
For those DIRECTLY affected by COVID 19:
If you have been directly affected by the COVID-19 outbreak, including those who are diagnosed with COVID-19, have a spouse or dependent who is diagnosed, or have experienced an adverse financial consequence as a result of COVID-10, including quarantines, layoffs, business closures or child care responsibilities, there are additional resources available to assist you during the economic downturn:
Waives the 10% early withdrawal penalties on up to $100,000 from qualified retirement accounts. Income tax on the distribution will still be owed but can be repaid over 3 year period.
The amount that can be taken as a loan from a qualified retirement plan has increased from $50,000 to $100,000 for 2020.
For overview of what resources are available to you:
Employment Security: https://esd.wa.gov/newsroom/covid-19-worker-information
Paid Sick Leave (employer paid)
Paid Family Medical Leave
Workers Comp/ L&I
This communication is intended to provide general information on legislative COVID-19 relief measures as of the date of this communication and may reference information from reputable sources. Although our firm has made every reasonable effort to ensure that the information provided is accurate, we make no warranties, expressed or implied, on the information provided. As legislative efforts are still ongoing, we expect that there may be additional guidance and clarification from regulators that may modify some of the provisions in this communication. Some of those modifications may be significant. As such, be aware that this is not a comprehensive analysis of the subject matter covered and is not intended to provide specific recommendations to you or your business with respect to the matters addressed.