In response to the COVID-19 pandemic, federal and state governments have made decisions that may impact your income and tax filings. Please pay careful attention to the different deadlines for Idaho state and federal filings below -- they are about a month apart.
Additionally, my office has received many questions about the direct Economic Impact Payments from the CARE Act. Answers to your questions are below, and please feel free to continue sending questions our way-- we are here to serve you.
Federal Tax Deadline
- The Treasury Department and Internal Revenue Service (IRS) announced that the federal income tax filing due date has been extended from April 15, 2020, to July 15, 2020.
- Taxpayers can also defer federal income tax payments due on April 15, 2020, to July 15, 2020, without penalties and interest, regardless of the amount owed. This deferment applies to all taxpayers, including individuals, trusts, estates, corporations, and other non-corporate tax filers as well as those who pay self-employment tax.
- Taxpayers do not need to file any additional forms or call the IRS to qualify for this automatic federal tax filing.
Idaho Tax Deadline
- In response to the COVID-19 pandemic, Governor Little extended the 2019 Idaho income tax filing and payment deadlines from April 15, 2020, to June 15, 2020. The extension applies to all taxpayers – including individuals, businesses, and entities – regardless of the amount owed. Penalty and interest won’t apply if taxpayers file their return and pay the income tax they owe by June 15.
- Governor Little has also extended the deadline to apply for property tax relief programs from April 15 to June 15.
Do I need to file a 2019 return to see any direct payments?
- No. If you have filed a 2019 return, the IRS will use that information. If you haven’t filed your taxes for 2019, then the IRS will use your 2018 return. It is tracked by Social Security Number; only those with a Social Security Number qualify for direct payments.
Do seniors need to file a tax return to see any direct payments?
- No. The U.S. Department of the Treasury and the IRS have announced that Social Security beneficiaries who are not typically required to file tax returns will not need to file an abbreviated tax return to receive an Economic Impact Payment.
- The IRS will use the information on the Form SSA-1099 and Form RRB-1099 to generate $1,200 Economic Impact Payments to Social Security recipients who did not file tax returns in 2018 or 2019. Recipients will receive these payments as a direct deposit or by paper check, just as they would normally receive their benefits.
Does the direct payment count as income? And, do I have to pay taxes on it?
- No. All direct payments are tax free.
What should I do if I did not file a tax return for 2019 or 2018 (but I am required to do so)?
- The best way to ensure you receive an Economic Impact Payment is to file a 2019 tax return if you have not already done so, and are required to. This could be accomplished for free online from home using the IRS Free File program. The IRS will also be engaging in a public campaign to alert all individuals of their eligibility for the rebate and how to receive it if they have not filed either a 2019 or 2018 tax return.
If I have a past due debt to a federal or state agency, or owe back taxes, will my rebate be reduced?
- No, the bill turns off nearly all administrative offsets that ordinarily may reduce tax refunds for individuals who have past tax debts, or who are behind on other payments to federal or state governments, including student loan payments.
- The only administrative offset that will be enforced applies to those who have past due child support payments that the states have reported to the Treasury Department.
My income has drastically changed from tax year 2018, how do I correct that?
- Direct payments will utilize your 2019 tax return or 2018 return if you have not yet filed your 2019 tax return. Individuals will receive $1,200 and joint filers can receive $2,400 if you make up to $75,000 in Adjusted Gross Income (AGI) for individuals and $150,000 in AGI for joint filers. There is an additional $500 for each child. The payment reduces if you make more than $75,000 in AGI as an individual or $150,000 AGI as a joint filer, zeroing out by $99,000 in AGI for individuals and $198,000 for joint filers.
- The latest resources from the IRS on Coronavirus tax relief
- In-depth information on the Economic Impact Payments, who qualifies, and how they will be dispersed
During these uncertain times, navigating federal programs can be difficult. If you have any further questions, don't hesitate to contact our offices; Washington, D.C., (202) 225-6611, or Coeur d'Alene, (208) 667-0127.