UPDATES FROM INTUIT…SOFTWARE IS STILL BEING UPDATED TO CONFIRM WITH THE FOLLOWING:
Federal Tax Updates (Updated 3/20/20)
The 2019 Tax Filing Deadline and payment deadline is July 15, 2020
On March 20, the Secretary of Treasury announced via Twitter that, at the direction of the President, they will extend the 2019 tax filing deadline to July 15, 2020. The IRS expects to continue to process refunds as normal. The IRS typically issues nine out of 10 tax refunds within 21 days or less from acceptance with e-file and direct deposit – the fastest way to get a refund.
Note, state tax filing deadlines may vary. Please see the updated list of tax guidance and information by state below.
The Families First Coronavirus Response Act (H.R. 6201)
On Wednesday, March 18, President Trump signed into law legislation to provide additional relief for individuals and businesses affected by COVID-19. The legislation, called the Families First Coronavirus Response Act, or H.R. 6201, includes relief for individuals, self-employed and businesses.
Relief for Individual Taxpayers. Eligible employees impacted by COVID-19 may receive paid sick and emergency sick leave.
- Emergency Sick Leave: Employees who were required to be quarantined, took care of a family member who was required to be quarantined, or had to care for your child due to school or daycare closures may be able to take 12 weeks job-protected leave under FMLA.
- Paid Sick Leave: Employees who were quarantined or seeking care for COVID-19 may receive two weeks paid sick leave at full pay and two-thirds pay to care for a family member or child.
Relief for Self-Employed and Small Businesses. The Families First Coronavirus Response First Act provides relief in the form of refundable tax credits for sick leave and family leave for both eligible self-employed and small business owners.
- Self-Employed Tax Credit for Sick Leave: Self-employed individuals may be eligible for a refundable tax credit equivalent to a qualified sick leave amount. Qualified sick leave is based on average daily self-employment income.
- Self-Employed Tax Credit for Family Leave: Eligible self-employed individuals may be eligible for a refundable tax credit equal to 100 percent of a qualified family leave equivalent amount.
- Small Business Tax Credit for Paid Sick Leave: Small business owners who paid sick leave wages to employees may be eligible for a refundable tax credit equal to 100 percent of qualified sick leave paid.
- Small Business Tax Credit for Paid Family Leave: Small business owners who paid qualified family leave wages to employees may be eligible for a refundable tax credit equal to 100 percent of qualified family leave wages paid.
The IRS is expected to issue additional guidance on the COVID-19 tax relief.
State Tax Updates (Updated 3/19/20) California
The FTB is postponing until July 15 the filing and payment deadlines for all individuals and business entities for:
- 2019 tax returns
- 2019 tax return payments
- 2020 1st and 2nd quarter estimate payments
- 2020 LLC taxes and fees
- 2020 Non-wage withholding payments
For more details regarding FTB COVID-19 tax relief, please go to ftb.ca.gov and search COVID-19.