A lot has happened since the global pandemic hit the US. Job loss has become the norm, but the government has also started distributing stimulus checks as a relief.
If you are a Los Angeles taxpayer, there are some practical things that you can do while you are waiting out this pandemic. Here are some you can do today.
Check Your Stimulus Payments
Americans are eligible for maximum relief payments of $1,200 for individulas, $2,400 for married couples, and $500 for each depending child 17 and below. The IRS is reponsible for the checks and will use your 2018 or newly filed 2019 return or your Social Security as a basis. If you somehow fail to get your check now, they will act as a tax credit in the next tax season.
Check Your Retirement Fund
Those turning 70 ½ were supposed to take their first Required Minimum Distribution (RMD) on April 1. RMDs are the amount that must be withdrawn from a traditional, SEP, or SIMPLE individual retirement account by participants of retirement age. But the signing of the stimulus package law suspended RMDs from retirement accounts in 2020. This is a positive development because, otherwise, you would have been paying higher tax based on the account’s value at the end of 2019, when it everything was worth more.
Deferred Tax Payments
The first quarter estimated tax payment is due on July 15, 2020 and the estimated tax amount for the second quarter is still due on June 14, 2020. Keep in mind that despite the deferment, you are still required to pay the appropriate amount on those dates.
Make Tax Deductible Gifts
If you want to help amid this pandemic, you can consider making a tax-deductible gift or a non-deductible gift if you are capable. CARES has a small philanthropic tax incentive worth $300 that you can claim if you donated to an IRS-approved charity. The deduction is only for gifts of cash made in calendar year 2020.
We Can Help
If you need professional help with taxes, our experienced tax experts can help guide you in the right direction. Contact us today at 818-452-2641 or fill out our contact form to schedule a free consultation.