Updated: Sep 7, 2020
The effect of coronavirus on day-to-day life had caused US taxpayers to become increasingly concerned in relation to their tax affairs.
Dear TAH clients,
We hope you are all well and staying safe while the world is under the spin. During this challenging time, we are committed to keeping you informed on relevant US tax updates for our individual US Expatriates clients. Our team continues to work from home, doing our best to help our clients with meeting the tax filing deadlines. We aim to provide invaluable resources to reply to your questions, dedicated to keeping our clients service without any interruption due to the unexpected pandemic situation. In this briefing, we have listed out several initiatives concerning the U.S. tax filing for taxpayers living abroad. The U.S. government has implemented additional tax reliefs and economic impact stimulus payments for Americans during this ongoing tax season.
2019 US TAX RETURN FILING AND PAYING TAXES DEADLINE EXTENDED
The IRS postponed the deadlines to file and pay taxes from April 15, 2020, until July 15, 2020.
This extended due date also applies to American Citizens/Green card holders living abroad.
If any of our TAH clients expect to owe any US taxes, then we recommend to file and pay taxes by 15th July 2020 to avoid interest on taxes due.
TAH team will file an extension for our existing clients around the 1st week of July 2020 until 15th October 2020. Please note extension helps only to avoid late filing penalties if any taxes due then interest accrues from 15th of July 2020 until the time of filing.
Economic impact payments / Stimulus
What you need to know No action needed by most people at this time
WASHINGTON – The Treasury Department and the Internal Revenue Service announced that the distribution of economic impact payments will begin in the next three weeks and will be distributed automatically, with no action required for most people. However, some seniors and others who typically do not file returns will need to submit a simple (2018 and 2019) tax return to receive the stimulus payment.
Who is eligible for the economic impact payment?
US Tax filers (US residents / US Citizens / Green Card holders / Americans living abroad with a valid social security number currently residing anywhere) with adjusted gross income up to $75,000 for individuals and up to $150,000 for married couples filing joint returns [MFJ] will receive the full payment. For filers with income above those amounts, the payment amount to be reduced by $5 for each $100 above the $75,000/$150,000 thresholds. Single filers with income exceeding $99,000 and $198,000 for joint filers with no children are not eligible.
Eligible taxpayers who filed tax returns for either 2019 or 2018 will automatically receive an economic impact payment of up to $1,200 for individuals or $2,400 for married couples. Parents also receive $500 for each qualifying child.
How will the IRS know where to send my payment?
The vast majority of people do not need to take any action. The IRS will calculate and automatically send the economic impact payment to those eligible.
For people who have already filed their 2019 tax returns, the IRS will use this information to calculate the payment amount. For those who have not yet filed their return for 2019, the IRS will use data from their 2018 tax filing to calculate the payment. The economic impact payment will be deposited directly into the same banking account reflected on the return filed.
The IRS does not have my direct deposit information. What can I do?
In the coming weeks, Treasury plans to develop a web-based portal for individuals to provide their banking information to the IRS online so that individuals can receive payments immediately as opposed to checks in the mail.
I am not typically required to file a tax return. Can I still receive my payment?
Yes. People who typically do not file a tax return will need to file a 2018 and 2019 simple tax return to receive an economic impact payment. Low-income taxpayers, senior citizens, Social Security recipients, some veterans, and individuals with disabilities who are otherwise not required to file a tax return will not owe tax. Tax And Accounting Hub ( TAH ) can assist if you need a tax return preparation service.
I have not filed my tax return for 2018 or 2019. Can I still receive an economic impact payment?
Yes. The IRS urges anyone with a tax filing obligation, who has not yet filed a tax return for 2018 or 2019 to file as soon as they can to receive an economic impact payment. Taxpayers should include direct deposit banking information on the return. Tax And Accounting Hub can assist if you need a tax return preparation service.
I need to file a tax return. How long are the economic impact payments available?
For those concerned about visiting a tax professional or local community organization in person to get help with a tax return, these economic impact payments will be available throughout the rest of 2020.
Where can I get more information?
The IRS will post all key information on IRS.gov/coronavirus as soon as it becomes available.
The IRS has reduced staff in many of its offices but remains committed to helping eligible individuals receive their payments expeditiously. Check for updated information on IRS.gov/coronavirus rather than calling IRS assistors who are helping process 2019 returns.
Information to TAH clients who have taken ITIN and US tax service for tax refunds through our firm recently, the timeline for your reference.
Standard ITIN process time with 8-10 weeks and the tax refund processing time is 8 to 9 months. However, currently with the USA lockdown until the end of April, we are expected to have significant delays.
For the tax refunds to the taxpayer without the USA bank account, the IRS will mail out a refund cheque to your home address.
If you need assistance with US 1040 filing for refund claim/ stimulus payment simple 2018 and 2019 tax filing, ITIN/ Form W7 Application or CAA services/US 1040NR US tax filing for refund claim of excess 1042S / 8288A/ 8805/ W2/ 1099 withholding.
Visit our website WWW.TAXANDACCOUNTINGHUB.COM for more ITIN/US tax-related FAQ.
Email Us: Kader@taxandaccountinghub.com.
Call us on: L: +442082211154, M: +447914393183.For overseas client. We can arrange for skype interview if the documents are sent to one of our representative teams. Our Skype ID is: TAH2108