We are winding down our tax season with the filing deadline of October 15 for those returns that had been extended from the original July 15 due date. During this time we have been monitoring the updates to the two major pieces of legislation as a result of COVID-19; the Families First Coronavirus Response Act (FFCRA) for mandated sick pay and/or family leave pay due to the coronavirus as well as various favorable tax benefits through the Coronavirus Aid, Relief, and Economic Security (CARES) Act which were covered in the spring issue of Tax News.
Congress has been unable to pass any other meaningful legislation during the summer and now with the November 3rd election and potential lame-duck session it is unclear how much, if any legislation, will be enacted for the balance of this year.
The Internal Revenue Service did release guidance for some of the prior actions and released regulations related to the Executive Order signed by the White House for the “payroll tax holiday.”
As an employee, all taxpayers are entitled to sick pay and family leave pay under the FFCRA, and you should have received notification of this eligibility. If you or a family member is diagnosed or quarantined due to the virus; or unable to work due to lack of child care as a result of the coronavirus then you may be entitled to be paid during the period of quarantine.
If you and/or your spouse are collecting unemployment income, note that this income is subject to income tax when your taxes are prepared in 2021. It is highly recommended that you review your tax potential tax liability in order to be prepared. Estimated tax payments may be required in order to meet your tax payment requirements.
As the coronavirus rages on and all of our lives are impacted, we are available to help you through the tax changes and requirements that may affect you.
While our office may not yet be open for face-to-face meetings, we are available through phone, email, fax, and virtual meetings. Do not hesitate to contact us if you have any questions regarding the issues discussed in this newsletter or any other tax matters.