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Latest Updates on Coronavirus Tax Relief
The Internal Revenue Service and the Treasury Department have started delivering a second round of Economic Impact Payments as part of the Coronavirus Response and Relief Supplemental Appropriations Act of 2021. No action is required by eligible individuals to receive this second payment. The IRS reminds taxpayers that the payments are automatic, and they should not contact their financial institutions or the IRS with payment timing questions. As with the first round of payments, most recipients will receive these payments by direct deposit. For Social Security and other beneficiaries who received the first round of payments via Direct Express, they will receive this second payment the same way.
People should visit IRS.gov for the most current information on the second round of Economic Impact Payments rather than calling the agency, their financial institutions or tax software providers. IRS phone assistors do not have additional information beyond what's available on IRS.gov.
New tax laws were passed last year that will have a wide impact on the number of Americans that will owe taxes when filing 2018 tax returns. The (GAO) Government Accountability Office recently issued a report warning that 4.5 million tax payers will come up short in 2018, unless they act now to adjust withholding amounts. This is due to the elimination of itemized deductions limits put on state and local tax deductions known as SALT (State and Local Tax), amounts that can be deducted for home mortgage interest and also the elimination of job-related expenses.
Most likely those who owe taxes for 2018 are people who itemize, specifically, married taxpayers who have children under the age of 17 and whose income exceeds $180 K from one or more jobs, those who have $20 K or more in non-wage income (dividends interest, or capital gains) and VETERANS are likely to have to pay additional tax when they file.
Please, make an appointment by calling 770-703-4706 and stop by our office for a consultation and let us show you what we can do to help. For instance you can save money toward your tax bill each month, in a money market fund, which now pay around 2 % in interest. Come and see us for more information
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