Dayton 937-898-3167    Sidney 937-492-0386

Economic impact payments: What you need to know

Check IRS.gov for the latest information: No action needed by most people at this time

IR-2020-61, March 30, 2020

WASHINGTON — The Treasury Department and the Internal Revenue Service today announced that distribution of economic impact payments will begin in the next three weeks and will be distributed automatically, with no action required for most people. However, some seniors and others who typically do not file returns will need to submit a simple tax return to receive the stimulus payment.

Who is eligible for the economic impact payment?

Tax filers with adjusted gross income up to $75,000 for individuals and up to $150,000 for married couples filing joint returns will receive the full payment. For filers with income above those amounts, the payment amount is reduced by $5 for each $100 above the $75,000/$150,000 thresholds. Single filers with income exceeding $99,000 and $198,000 for joint filers with no children are not eligible.

Eligible taxpayers who filed tax returns for either 2019 or 2018 will automatically receive an economic impact payment of up to $1,200 for individuals or $2,400 for married couples. Parents also receive $500 for each qualifying child.

How will the IRS know where to send my payment?

The vast majority of people do not need to take any action. The IRS will calculate and automatically send the economic impact payment to those eligible.

For people who have already filed their 2019 tax returns, the IRS will use this information to calculate the payment amount. For those who have not yet filed their return for 2019, the IRS will use information from their 2018 tax filing to calculate the payment. The economic impact payment will be deposited directly into the same banking account reflected on the return filed.

The IRS does not have my direct deposit information. What can I do?

In the coming weeks, Treasury plans to develop a web-based portal for individuals to provide their banking information to the IRS online, so that individuals can receive payments immediately as opposed to checks in the mail.

I am not typically required to file a tax return. Can I still receive my payment?

Yes. People who typically do not file a tax return will need to file a simple tax return to receive an economic impact payment. Low-income taxpayers, senior citizens, Social Security recipients, some veterans and individuals with disabilities who are otherwise not required to file a tax return will not owe tax.

How can I file the tax return needed to receive my economic impact payment?

IRS.gov/coronavirus will soon provide information instructing people in these groups on how to file a 2019 tax return with simple, but necessary, information including their filing status, number of dependents and direct deposit bank account information.

I have not filed my tax return for 2018 or 2019. Can I still receive an economic impact payment?

Yes. The IRS urges anyone with a tax filing obligation who has not yet filed a tax return for 2018 or 2019 to file as soon as they can to receive an economic impact payment. Taxpayers should include direct deposit banking information on the return.

I need to file a tax return. How long are the economic impact payments available?

For those concerned about visiting a tax professional or local community organization in person to get help with a tax return, these economic impact payments will be available throughout the rest of 2020.

Where can I get more information?

The IRS will post all key information on IRS.gov/coronavirus as soon as it becomes available.

The IRS has a reduced staff in many of its offices but remains committed to helping eligible individuals receive their payments expeditiously. Check for updated information on IRS.gov/coronavirus rather than calling IRS assistors who are helping process 2019 returns.

2019 Client Letter

It is time again to start gathering your tax information for 2019. We would like to send your 2019 tax organizer via email. The tax organizers contain your 2018 tax information and can assist you in compiling your 2019 tax information. We do not require that you use the organizers to compile your 2019 data, but they are available to you if you find them to be of assistance.

For security reasons, no Social Security numbers, birthdates or bank information will be listed within the organizer, and all email attachments will be password protected.

If you wish to receive an organizer, please contact us via email at taxadmin@manningcpallc.com , or phone call (937-898-3167),andlet us know if you would like your organizer emailed, or if you would like a paper copy mailed to you.

In an effort to help eliminate the increasing risk of identity theft, we recommend not mailing your tax returns to you. We recommend that you pick up your completed returns or that we email them to you (password protected). Special mail services will be used for our out-of-state clients.

As tax preparers, it is mandatory that we file federal and state returns electronically. If we have your email address on file, you will receive a confirmation when your tax return has been electronically filed and accepted, along with details of when to expect your refund. Most cities will be required to be mailed with attachments. We will prepare the city returns, however it is your responsibility to sign and mail.

PLEASE CLICK HERE TO DOWNLOAD THE TAX QUESTIONNAIRE (PDF Format).

PLEASE COMPLETE AND RETURN THE QUESTIONNAIRE, ALONG WITH YOUR 2019 TAX INFORMATION

We look forward to seeing you within the next couple of months. Please make every effort to get your information to us as soon as you have it organized to avoid the last minute rush.

If you need an extension for your 2019 tax return, we will do so upon your verbal request.

In closing, after a lengthy career as a CPA with our firm, we would like to congratulate Ken Wiseman on his retirement. Ken’s clients are being serviced by Craig Steinke, CPA, a partner in our firm. Please contact Craig for with any questions you may have regarding this transition.

As always, we appreciate your business.

Very truly yours,

Manning & Associates CPAs, LLC, Partners and Tax Professionals:

John M. Manning CPA
Craig L. Steinke, CPA
John C. Bensman, CPA
Sandra L. Comer, CPA
John M. Keller, CPA
Lynne Dunham
Carter Harris
Trenton Dunham
Amber Wells
Michelle Easterling


VERY IMPORTANT 2019 TAX TOPICS

1099 Requirement – Applicableif You Own Your Own Business, Farm or Rental Property

If you are a business owner, have a farm, or own a rental property, the Internal Revenue Service requires you to issue Form 1099 to any individual, “unincorporated” business, or any law firm that you paid in excess of $600 per calendar year for services rendered. We are required to indicate on your tax return whether or not payments were made that require filing Form(s) 1099, and if so, whether or not they were filed. Please complete the 1099 Requirement Section on Page 3 of this letter.

If you need assistance or have questions related to the preparation of Form(s) 1099, please contact our office for assistance. You may refer to our website for additional information on this topic. Forms 1099 must be issued to the recipients and to the Internal Revenue Service by January 31, 2020.

Charitable Contributions

We are still required to obtain a client statement with signature for charitable contributions. Please complete and sign the charitable contribution section on the enclosed Signature Page of this letter and submit with your 2019 tax information.

Affordable Care Act in 2010

As a result of the passage of the Affordable Care Act in 2010, we will be asking for information about your medical insurance coverage for 2019. You will need the amount of the premium paid for medical insurance in 2019, either by you, your employer, or the combination of both. If you work for a company that employs over 250 employees, this information should already be on your W-2.

In addition, you will be required to prove that you had adequate medical insurance for all dependents claimed on the tax return for all twelve months of the year. Your medical insurance company may mail to you Form 1095-B –Health Coverage. (If you obtained insurance in the Market Place, you need to download Form 1095-A). Please include this form with your year-end tax information as it will provide the information we need to complete your tax returns.

Minimum Wage Increase

The State minimum wage for 2020 is $8.70 per hour. The Ohio minimum wage for tipped employees is $4.35 per hour (plus tips). The State minimum wage still exceeds the federal minimum wage.

Dependents

Taxpayers must provide documentation for all dependents claimed on their tax returns. If there is any doubt as to claiming a dependent, we will ask you to complete Form 8867 (Paid Preparer’s Due Diligence Checklist) or, if necessary, Form 8332 (Release/Revocation of Release of Claim to Exemption for Child by Custodial Parent), which must be signed by the custodial parent releasing/revoking the claim to exemption.

Business Expense Documentation

All business expenses claimed as a deduction on your tax returns must have the proper documentation. This includes keeping a mileage log for all business miles.

Dayton Office
6105 North Dixie Drive
P.O. Box 13449
Dayton, OH 45413
Phone:      (937) 898-3167
Fax:           (937) 898-9202
Email:  jkangas@manningcpallc.com

Sidney Office
500 Folkerth Avenue
Sidney, OH 45365
Phone:        (937) 492-0386
Fax:             (937) 492-3262
Toll Free:   1-888-249-0494
Email:  jkangas@manningcpallc.com

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