INFORMATION AND RESOURCES FOR FILING YOUR 2020 TAXES:
On March 17, the IRS announced they would extend the deadline for individuals to file their 2020 federal income taxes from April 15 to May 17, 2021. For more information on federal tax filing, click HERE. The deadline to file individual state taxes in Arizona has also been extended from April 15 to May 17, 2021. For more information on state tax filing, click HERE.
- Paying Your Taxes
- Coronavirus Tax Relief and Economic Impact Payments for Individuals and Families
- Coronavirus Tax Relief for Businesses and Tax-Exempt Entities
- How to Pay Taxes for Unemployment Compensation
Rebate Recovery Credit: The Recovery Rebate Credit is authorized by the Coronavirus Aid, Relief, and Economic Security (CARES) Act and the COVID-related Tax Relief Act. It is a tax credit against your 2020 income tax. Eligible individuals who did not receive the full amounts of both Economic Impact Payments may claim the Recovery Rebate Credit on their 2020 Form 1040 or 1040-SR. To determine whether you are an eligible individual or the amount of your Recovery Rebate Credit, complete the Recovery Rebate Credit Worksheet in the Instructions for Form 1040 and Form 1040-SR. More information is available, HERE.
If you need additional help with a tax matter, a tax bill you will struggle to pay, or a notice from the IRS and have questions, please check out the Taxpayer Advocate Service, an independent organization within the IRS created to help taxpayers and to protect their rights.
For information on free, professional tax help, qualifying taxpayers can find more information about Volunteer Income Tax Assistance (VITA) clinics HERE. Given the limited in-person services available due to the coronavirus, please check the website first to ensure sites will still be open.
TAX-RELATED CORONAVIRUS LEGISLATION AND UPDATES FOR EMPLOYERS:
As part of the Families First Coronavirus Response Act, businesses and tax-exempt organizations with 500 employees or fewer are required to provide emergency paid sick, family, and medical leave. For an employee who is unable to work because of mandated- or self-quarantine, your business may receive a refundable sick leave credit at the employee's regular rate of pay, up to $511 per day and $5,110 in the aggregate, for a total of 10 days. For an employee who is unable to work because they need to care for a child whose school or child care facility is closed due to the Coronavirus, your business may receive a refundable child care leave credit equal to two-thirds of the employee's regular pay, capped at $200 per day or $10,000 in the aggregate.
These credits are dollar-for-dollar and designed explicitly to fully reimburse most employers for the cost of providing leave to their workers. For all of the details, view the IRS release HERE.
Under the CARES Act, employers have access to a new, refundable Employee Retention Tax Credit designed to help those businesses who keep employees on their payroll, but who choose not to or are ineligible for the SBA Paycheck Protection Act. This credit is worth 50% of wages paid by an employer for the first $10,000 of compensation, including health benefits, to an employee. The credit is available to all employers regardless of size, including tax-exempt organizations.
- Eligible employers must have operations fully or partially suspended due to COVID-19 or
- Have gross receipts decline by more than 50% when compared to the same quarter last year.
The only employers excluded from participating are state and local governments and employers who receive Small Business Loans. The credit is provided for wages paid or incurred from March 13 through December 31, 2020. For more information on the Employee Retention Tax Credit, click HERE.