(732) 822-6890 leighkremer@verizon.net

Further update in Regard to the Coronavirus

by | Mar 30, 2020 | Business, Coronavirus crisis, Individuals, Tax Preparation, Uncategorized

I hope this message find you well.

I have been getting a lot of questions from clients regarding various taxpayer related issues regarding the coronavirus crisis.  This message will attempt to answer those questions.

  1. The federal government has announced a relief package for individuals and families.  The relief amount is $1,200 for individual taxpayers and $2,400 for couples, plus $500.00 per child.  To be eligible for the full amount your Adjusted Gross Income (line 7 of your 2018 federal tax return, lime 8B of your 2019 individual tax return) must be:

Under $75,000 for individuals

Under $150,000 for couples

Under $112,500 for head of household filers.

If you make over these amounts you may be eligible for a partial payment.

Note that the IRS will use your latest filed tax return to figure your eligibility.  So, if you have not filed for 2019 your 2018 figures will be used.  If your income dropped from above the threshold in 2018 to below the threshold in 2019 you would be best served by filing your 2019 taxes ASAP.

  1. There are SBA loan programs available to help small businesses and, in many cases, if you keep your employees on payroll the loans can be converted to grants that do not have to be repaid. There are other provisions in the relief package that help a variety of businesses in a variety of ways.  Contact me to find out what is available for your business.
  1. As many of you already know the IRS has announced an extension of the tax filing and tax payment deadline for April 15th filers to July 15, 2020. Unfortunately, the State of NJ has NOT yet moved the deadline from April 15th.  Since the state return cannot be completed without first completing the federal return this partially nullifies the federal deadline extension.  However, it is expected that the State of NJ will announce shortly an extension of the deadline until at least June 30th, and possibly to July 15th.  I will keep you posted.
  1. The state of NJ has expanded the unemployment compensation program to include gig workers and self-employed people. I encourage all my clients who lost their ability to earn an income because of the virus and related shutdown to file for unemployment.  This does not mean your claim will be accepted.  Each application will be looked at on a case-by-case basis.  The easiest way to file is online.  Visit NJ.gov/labor for more information.
  1. I am open for business. However, I am not seeing clients for face-to-face meetings.  You can arrange a no-contact drop-off of your tax information off at my office in Monmouth Beach or at my home in Red Bank.  You can mail a package to my Monmouth Beach office or you can email me your information.  I can be reached by phone at my office at (732) 222-4422 or on my cell at (732) 822-6890, or by email at LeighKremer@verizon.net.

Please do not hesitate to contact me if you have any other tax or accounting questions.

Stay safe and be well.

I help clients reduce taxes, increase profitability, meet reporting requirements and save valuable time.  Contact me to find out how!