Coronavirus Update: Tax Filing and Contribution Deadline, Stimulus Check

Nandita Das Financial Planning

Hi, good morning everyone!

 We have all lived through the new normal successfully for at least for one week working from home. While working online many of us have been busy taking care of our families and friends. You may not even have realized that April 15th is not so far away, but there is good news.

Tax Filing Deadline

Hold your breath. The tax filing deadline has been extended from April 15th to July 15th. So, you have three months. Please take care of yourself first and do not add the tax anxiety to your health anxiety. What does this extension of the tax deadline mean? No Failure to Pay (FTP) or Failure to File (FTF) penalty till July 15th. It goes without saying that if you expect a refund, file your taxes at the earliest, so that you can get your refund check at the earliest.

But this is the federal tax return and I’m sure you all are thinking about what about my state taxes?

 Well if you live in California, New York, Iowa or South Carolina, all these four states have already extended the individual income tax deadlines. Other states have said that they will make decisions after the IRS makes official announcement of the tax filing deadline extension.

Contribution Deadlines

Along with your tax filing deadline comes the contribution deadline for your IRAs, Roth IRAs and HSAs (health savings account). It appears that this also will be extended till July 15th 2020 so you can if you’re thinking of making a Roth contribution if you’re thinking of making a traditional IRA contribution or HSA contribution for the year 2019 you still have time until July 15th 2020.

 If you’re wondering well, I am thinking about coronavirus and I really don’t know if I have the where-withal to even think of contributing to my Roth IRA right now.

Stimulus Check

For some of us there is the coronavirus stimulus check that is coming. Hopefully the first one is likely to be issued as at the earliest of April 6. So, who is eligible for this coronavirus stimulus check that we’re talking about? These are based on your 2018 tax return so do not stress that you need to do your 2019 tax return to figure out if you are eligible to get the stimulus check or not.

 If your adjusted gross income for 2018 was less than $75,000 and you were filing single or your adjusted gross income for married filing jointly for 2018 was less than $150,000 you will probably get the suggested amount of $1,200 per adult. Like any other tax rule, as your income level or as your adjusted gross income increases to the phase-out limit of $99,000 for single and $198,000 for MFJ (married filing jointly), the check amount will be reduced.

Hopefully that helps you destress a little and plan for how you want to use this check. For many of us, it may not be possible to think about Roth IRAs or any contributions. That’s perfectly alright! This was just to help you with tax-filing (federal and state) and contribution (IRAs, Roth IRAs, HSAs) and to plan as to how you would like to use your stimulus check. 

Please stay safe and have a good weekend. Enjoy this time with your family!