Coronavirus Tax Relief InformationLetizia
Coronavirus-affected countries across the world are dealing with a faltering economy. Not just the governments, but the common people are also bearing the brunt of the current pandemic. Many places are still in the lockdown phase while many others have started to relax the stay-at-home orders.
In the United States, the government has rolled out a federal stimulus package to offer financial assistance to people in need. This has come as a big relief for taxpayers all across the country. The official website of the Internal Revenue Service (IRS) provides detailed information on whether you qualify for the financial help that the United States government is providing. In addition to this, the government has also relaxed the tax filing deadline both for individuals and businesses. If you live and work in the United States, you can take advantage of the extended deadlines for 2019 income tax filing and payment. The coronavirus tax relief is automatic and taxpayers don’t require to file any extra forms or contact the IRS.
Three key things taxpayers need to know are:
- The extended deadline for filing 2019 federal tax returns is July 15th.
- The tax code has been updated.
- New legislation has been introduced, which affects tax filings.
- Tax filers need more help as they are unable to walk out of home.
It’s not just the restaurants and bars that are out of reach at this time, but a physical meeting with a tax professional is also out of bounds. Only the essential services are operational during the current pandemic. However, it’s important to prepare for your tax filing in advance – particularly when you are staying home. Since most of the offices are still shut, you will not have the luxury of walking in the last hours and get everything ready to file your tax returns for the year 2019.
Getting the paperwork ready is of crucial importance. As soon as your tax return has been processed, you can receive your pending tax refund. Most importantly, it helps you get the stimulus checks during the pandemic. The checks will be sent to you on the basis of your 2018 or 2019 return.
Tax Relief: State-Wise Details
Coronavirus tax relief varies from one U.S. state to another. Here is a breakdown of the tax relief information by state.
Alaska: The Alaska Department of Revenue Tax Division has postponed its tax filing deadline to July 15, 2020. This excludes the tax filing for companies operating in the oil and gas production industry. If the sales tax returns and filings are completed on or before July 15, 2020, no penalties or interests will be levied on the tax filers. Local sales and use taxes fall outside this ambit.
Arizona: The Arizona Department of Revenue has extended the income tax deadline from April 15 to July 15, 2020.
Arkansas: In the wake of the coronavirus outbreak, the state of Arkansas has extended the deadline for state income taxes from April 15 to July 15, 2020. This extended deadline is also applicable to other taxes including tobacco tax, vehicle rental tax and tire fee. For the remaining taxes, you’ll need to adhere to the guidelines as stated in the Arkansas state legislation.
California: The state of California has offered relief to taxpayers for sales taxes, state income taxes and a couple of others. If you’re a business owner with less than 5 million dollars in taxable annual sales, you’ll get a relief of deferring up to $50,000 of sales and pay it in 12 equal monthly installments. No interests or penalties will apply to this use of tax liability. For small businesses, the tax filing deadline has been extended to July 31, 2020. Other businesses that have been affected due to the coronavirus pandemic may get extensions, as well. The state of California has also postponed the state income tax deadline until July 15th, 2020.
Delaware: The state income tax deadline was April 15th, 2020. Due to coronavirus, this deadline has been postponed to July 15, 2020.
Georgia: The extended state income tax filing and payment deadline is July 15, 2020.
Hawaii: The new deadline for filing and paying state income taxes in Hawaii is July 20, 2020. This tax relief is not available to estimated income tax payments. Tax filing and payment deadline for all the other taxes remain the same.
Illinois: The state of Illinois has set July 15, 2020, as the new deadline for filing and paying state income taxes.
Indiana: The new deadline for individual tax filing and payment is July 15th, 2020. The same extended deadline applies for the estimated income tax payment, as well. The deadline for corporate tax filing and payment has been extended to August 17, 2020. The dates for other tax filings and payments are the same as before. Indiana is also offering use tax waivers on donated coronavirus supplies.
Iowa: The Iowa Department of Revenue is providing coronavirus tax relief to businesses and individuals. Applications are being received for sales and tax deferrals. If your business was impacted due to the COVID-19 pandemic, you can also submit these applications with the state revenue department. The state has postponed the deadline for filing taxes by 60 days from the due date. For income tax filing and payment, July 31, 2020, is the new deadline. No late fees or penalties will apply if you file returns and payments on or before the extended deadline. For information on more tax reliefs, check with the Iowa Department of Revenue.
Kansas: For income tax filing and payment, the state has extended the deadline to July 15, 2020. This new deadline doesn’t apply for estimated tax payments.
Kentucky: The new, updated deadline for income tax returns and payments is July 15, 2020. The Kentucky Department of Revenue is cooperating with taxpayers who have been affected by the coronavirus pandemic. You should get in touch with the department for more information.
Louisiana: The previous deadline of April 15, 2020, for state income tax filing and payment has been canceled. Now, the taxes are due on or before July 15, 2020.
Maine: To provide relief to individual taxpayers, the state of Maine has extended the state income tax deadline to July 15, 2020.
Maryland: In the state of Maryland, coronavirus tax relief is available both for sales taxes and the other kinds. The extended date for a number of tax filings and payment is July 15, 2020. The new deadline is applicable for state income taxes as well as estimated tax payments.
Massachusetts: The state has extended the tax filing and payment deadline for sales and meals taxes to September 20, 2020. If you file your return and payments by this new date, no penalties or interests will be charged. The date for filing and payment of state income tax has also been postponed to July 15, 2020. For more information on such tax relief, get in touch with the state revenue department.
Michigan: The previous deadline of April 15, 2020 for filing of state income has been extended to July 15, 2020. The new deadline for filing city income taxes is July 31, 2020. Penalties may apply for delaying.
Minnesota: For those residing in the state of Minnesota, the state income taxes are due on or before July 15, 2020.
Mississippi: The dates for filing sales taxes and other types have not been postponed in the state of Mississippi. However, the state revenue department is providing some relief in regard to penalties and interests.
Missouri: The updated deadline for filing state income taxes is July 15, 2020. This extension in due dates are also applicable to individual and estimated tax payments.
Montana: Apart from postponing the state income tax filing and payment deadlines to July 15, 2020, the state of Montana is offering coronavirus tax relief for many other types of taxes. However, the relief for the other ones will be given on the extent of impact of the coronavirus pandemic on taxpayers. For more information in this regard, you should get in touch with the state revenue department.
Nebraska: The state governor has requested the taxpayers to file their tax returns and payment by the previous deadline of April 15, 2020. However, there is an extension in this due date, as well, like many other states. If you’re unable to pay penalties and interests due to the impact of the current pandemic, you can contact the office of the Tax Commissioner for relief.
New Jersey: For the residents of New Jersey, the previous deadline for state income tax filing and payment has been relaxed to July 15, 2020.
New Mexico: The state of New Mexico has also provided relief for state income tax filing and payment by extending the deadline to July 15, 2020. If you file tax returns by the new date, no penalties or interests will apply. Taxes such as gross receipt taxes and compensating taxes have unchanged deadlines.
New York: The tax filing deadline for sales taxes was March 20, 2020. If you’ve missed this deadline due to the impact of the coronavirus pandemic, you can submit a request to the state revenue department for waiving penalties and interests. The state income tax filing and payment deadline is July 15, 2020.
In many states like Alabama, Colorado, Connecticut, Florida, Illinois and Michigan, the deadline for sales tax relief has expired. The new deadline for filing state income taxes in most states of the country is July 15, 2020. Many states have come up with extra relief measures to assist taxpayers. Regardless of which state you’re located in, you’re advised to visit the revenue department of your state and check for various tax relief options and measures. In the states where tax relief is limited, you can submit requests for additional relief in tax payment.
Beverage Alcohol Tax Relief
During the coronavirus pandemic, people have been advised to stay at home and go out only when it’s truly essential. A lot of businesses have been affected as a result of the outbreak. Beverage and alcohol industry is among some of the most badly hit industries in the country. To help these businesses cope up with the difficult times, the Alcohol and Tobacco Tax and Trade Bureau has come up with a number of tax relief measures. New deadlines have been set for tax filings. The dates for expiring licenses have also been postponed in most states.
Communication Tax Relief
In the wake of the COVID-19 outbreak, some states have extended the tax filing dates for the communications industry. If you adhere to the updated tax deadline, no penalties or interests will apply. The extensions vary from one state to another. For detailed tax relief information in this regard, you should get in touch with the tax and revenue department of your state.
Federal Tax Relief
The U.S. government has rolled out multiple COVID-19 stimulus packages to help businesses and individuals affected by the pandemic. The $310 billion Paycheck Protection Program was signed into legislation for providing loans to small businesses. An emergency fund was created for healthcare providers. A $25 billion stimulus was released for increased testing.
The United States Department of Treasury extended the tax filing and payment deadlines for all taxpayers. For individuals, the government offered a deferral of up to 1 million dollars 2019 tax dues. The deferral amount of the tax due for C-corporations is up to 10 million dollars. This tax relief is available in the case of estimated tax payment, as well. Apart from these, the US government has also taken many more relief measures for enabling Americans to deal with the COVID-19 situation. Some of the additional reliefs include emergency food and nutrition assistance, emergency paid leave, emergency paid sick days, extended unemployment benefits, just to name a few. States have been provided with interest free loans. The economy is in bad shape. To help it recover, the Federal Reserve has also curtailed its benchmark interest rate to ‘close to zero’. This rate will be maintained until the economy shows signs of revival.