Coronavirus Stimulus Package & Tax Relief For Freelancers & Expats

Tax Deadline Extended

The federal income tax deadline has been automatically extended from April 15, 2020 to July 15, 2020. Taxpayers also have an automatic extension of time to pay taxes due until July 15, 2020 without interest or penalty accuring. If taxpayers need additional time to file beyond the July 15 deadline, they must apply for an extension for the October 15 deadline. Please contact our office if you need information regarding an extension until October 15, 2020.

Eligibility for Stimulus Rebate

Your eligibility is based on the adjusted gross income (AGI) of your most recent tax return, either 2018 or 2019. If your most recently filed return has direct deposit information, you should receive your rebate electronically, otherwise it will be submitted through the mail by check. If you have moved or changed your address since 2018, it may take longer to process and we recommend filing your 2019 returns promptly.

If you have an AGI of $75,000 ($150,000 married filing jointly), you could be eligible for the full check rebate. For individuals this amount is $1,200 and $2,400 for joint taxpayers, with an additional $500 for each qualifying child. As your AGI increases, the amount your are eligible begins to decrease. The stimulus check rebate completely phases out at $99,000 for single taxpayers, $146,500 for those filing as Head of Household and $198,000 for joint filers with no kids.

Americans living abroad who meet the income requirements and have filed a 2018 return are also eligble for the stimulus rebate.

Timeline for Stimulus Checks

The Treasury Secretary Steven Mnuchin said he expects people will begin receiving their funds in 2-3 weeks, although the IRS has not provided any update on when they will begin processing rebates. The IRS has also stated they have no information to provide on this matter currently, so please do not contact them directly. It could take anywhere from 3-12 weeks before all taxpayers receive their rebate checks.

Increase in Unemployment Benefits & Eligibilty

Unemployment payments will be increased by $600 weekly for four months through July 31, and the bill also includes those who were previously not eligible for unemployment, including part-time employees, freelancers, independent contractors, gig workers, and self-employed persons. 

Financial Assistance Provided for Eligible Non-profits and Self-Employed Individuals

The Small Business Administration’s loan program is now accessible to more businesses and has an increased cap on loans. This Act provides $349 billion for the Small Business Administration to distribute through a new loan program titled the Paycheck Protection Program (PPP), making non-profits, self-employed individuals and contractors eligible to receive assistance. 

Additional Information

If you have taxes owing from previous years and are eligible for the rebate check, it will not go towards the amount past due. It is one time payment and will not be considered income in 2020, so no tax can be collected on the amount at filing time next year. If your income varies from year to year, the rebate will be reconciled on your 2020 returns based on your 2019 income. The IRS website will be providing more information in the coming weeks on processing times for checks and direct deposit.