The IRS released the first wave of stimulus checks today! Many Americans woke up to deposits pending, or available from the department of treasury. I personally know a few people in the city who have gotten theirs, proven that those who have already filed would get paid quickly. However, if you did not get a deposit, another round is expect the be deposited Tuesday, with more deposits throughout the week. Those who have their deposit information on file got theres first, in a likely draw of longer tenured tax payers to least. For those without bank accounts, the IRS plans to send out checks starting April 20th. Many have also wondered about ongoing payments in the midst of the crisis. Last week President Trump confirmed that they are in deed, planning to send another wave of payments out. I hope the payments bring happiness to you all. Stay healthy stay safe.
IRS
This Week Starts Stimulus Payments!
What you need to do to get your government stimulus check
By jamaibaw-courtesy of Black America Web, via The New Pittsburgh Courier.com
The IRS and the Treasury Department say Americans will start receiving their economic impact checks in the next three weeks.
The payments are part of the $2.2 trillion rescue package signed into law last week by Donald Trump aimed at combating the economic ravages of the coronavirus outbreak.
Most people don’t need to do anything to get the money. But some — including senior citizens and low-income people who might not traditionally file tax returns — do need to take action. People behind on filing their taxes might also want to get caught up.
The IRS and Treasury have provided more details on how to ensure you get paid. Here are the basics:
WHO IS ELIGIBLE FOR THE PAYMENTS?
Anyone earning up to $75,000 in adjusted gross income and who has a Social Security number will receive a $1,200 payment. That means married couples filing joint returns will receive the full payment — $2,400 — if their adjusted gross income, which what you report on your taxes, is under $150,000.
The payment steadily declines for those who make more. Those earning more than $99,000, or $198,000 for joint filers, are not eligible. The thresholds are slightly different for those who file as a head of household.
Parents will also receive $500 for each qualifying child.
WHAT DO I HAVE TO DO TO GET THE CHECK?
For most people, nothing.
The money will be directly deposited in your bank account if the government has that information from your tax return. If you haven’t filed your 2019 taxes, the government will use information from your 2018 taxes to calculate your payment and determine where to send it. It can use your Social Security benefit statement as well.
I DON’T USUALLY HAVE TO FILE TAXES. DO I STILL GET A PAYMENT?
Yes. People who are not required to file a tax return — such as low-income tax payers, some senior citizens, Social Security recipients, some veterans and people with disabilities — will need to file a very simplified tax return to receive the economic impact payment. It provides the government basic details including a person’s filing status, number of dependents and direct-deposit bank information.
I HAVEN’T FILED MY 2018 OR 2019 TAXES. WILL I STILL GET A PAYMENT?
Yes, but the IRS urges anyone required to file a tax return and has not yet done so for those years to file as soon as possible in order to receive an economic impact payment. Taxpayers should include their direct-deposit banking information on the return if they want it deposited in their account.
I DIDN’T USE DIRECT DEPOSIT ON MY TAXES, WHAT CAN I DO?
The government will default to sending you the check by mail if you did not use direct deposit.
However, IRS and Treasury say that they will develop an online portal in the coming weeks for individuals to provide their banking information so that they can receive the payments immediately instead of in the mail. It has not yet set a deadline for updating that information.
WHERE DO I DO THIS?
The IRS and Treasury say the website irs.gov/coronavirus will soon provide information about the check, including how people can file a simple 2019 tax return.
I NEED MORE TIME TO FILE MY TAX RETURNS. HOW LONG DO I HAVE TO GET THE PAYMENT?
The IRS says people concerned about visiting a tax professional or local community organization in person to get help with a tax return should not worry. The economic impact payments will be available throughout the rest of 2020.
Aretha Franklin Died With Millions of Dollars, But She Forgot to Do This!
Nationwide — Aretha Franklin, the Queen of Soul, is a legend that will never be forgotten. But with all due R-E-S-P-E-C-T, the IRS is probably singing with joy because she reportedly left no will when she died. Apparently, she did nothing to shelter her assets from the Taxman. “The IRS will eat 40 percent of Aretha’s estate with the death tax,” says celebrity tax advisor Jayson Thornton of Thornton Tax Firm.
But the Estate taxes could have been limited. Thornton says Franklin could have set up an estate plan with trusts to benefit any relatives and charities she chose, while leaving very little if anything to be taxed. “When Black celebrities die, their money normally goes to 4 places; family, friends, charity, and the Taxman,” said Thornton.
Not settling up a trust that would have given Franklin’s beneficiaries set amounts; they now have to fight over the Taxman’s leftovers.
For 2018, the estate tax exemption is $5.6 million per individual. That means an individual can leave $5.6 million to heirs and pay no federal estate taxes. A married couple will be able to shield $11.2 million from federal estate taxes. Aretha Franklin died with a reported estate net worth of $80 million, which could end up paying almost $27 million in Federal Estate Taxes.
About Thornton Tax Firm, LLC
Thornton Tax is a St. Louis, MO based African American accounting firm that specializes in tax law for clients in the Sports and Entertainment industry in tax compliance cases, tax preparation and IRS tax debt settlements. For more information, visit www.ThorntonOffice.com.
About Jayson Thornton
Jayson M. Thornton is a tax advisor and enrolled to practice by the United States Department of Treasury. He is also a certified public accountant (CPA) candidate for the State of Missouri. Thornton earned his associate degree in Accounting from St. Louis Community College, and bachelor’s degree in 2006 from Missouri Valley College as an honors graduate.