Dear clients,

We have taken many steps to protect our employees and clients during this national crisis. 

• Since March 13th we have restricted in office appointments. 

• Employees are working remotely as much as possible.

• We are sending clients completed returns and signature requirements electronically or by mail.

• Clients are advised to mail or send tax documents securely and electronically, click here.

We realize these measures have made the process more challenging, but we sincerely appreciate your patience and we are working hard to ensure every client gets the information and guidance they need regarding the individual and business stimulus packages. 

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Tax Deadline:

• Internal Revenue Service extends individual due date to July 15, 2020.

• State of Massachusetts extends due date to July 15, 2020.

• State of RI Division of Tax has extended individual, corporate and single member LLC,  tax due date to July 15, 2020.

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Individual Stimulus - Update your direct deposit info with the IRS here https://www.irs.gov/coronavirus/economic-impact-payments

Recovery check amounts: Single taxpayers will receive $1,200 and joint taxpayers will receive $2,400. With an additional $500 per qualifying child.

 

The recovery check is considered a credit for 2020, but paid in advance.

The amount is reduced (but not below zero) by 5% of each dollar a person’s adjusted gross income (AGI) exceeds:

• Married filing joint: $150,000 (AGI over $198,000 does not qualify)

• Head of household: $112,500 (AGI over $146,500 does not qualify)

• Single: $75,000 (AGI over $99,000 does not qualify)

For example:

• A married couple with no children has an AGI of $190,000.

• $190,000 is $40,000 above the $150,000 amount shown above.

• The couple’s check is reduced by 5% of $40,000, which is $2000.

• Therefore, they would receive a check for $400. (i.e., $2400 - $2000 = $400)

Other key details for recovery check eligibility include:

• Nonresident aliens are not eligible for the rebate.

• If a taxpayer has an outstanding debt (which the IRS would typically offset a refund by paying that debt), recovery dollars will not be used to offset that debt.

• Amount will be direct deposited into the account on the last filed return. 

• The Treasury is opening a portal for people who didn't use direct deposit to update their information if they want.

• AGI will be accessed from 2019 returns if filed at the time of determination. Otherwise, 2018 returns will be used.

• Taxpayers who have not filed a return will not receive a check unless they did not file because they only have SSA-1099 or RRB-1099 (social security). The Treasury Department will review those forms for 2019 and issue the appropriate amount via check.