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.

 

Tax season is difficult for everyone. For those working as independent real estate agents, things can be even messier. If realtors are aware of these 12 tax deductions, their lives will be much easier when tax time comes around. Take a look at a few tax deductions that will help to save some money.

Vehicle Mileage
Much of a realtor’s time is spent driving clients to and from properties. Realtors in the United States alone drive billions of miles each year. Vehicle mileage is deductible as long as date, time, distance, and purpose of the trip are logged. The IRS determined the 2018 mileage rates to be 54.5 cents for every mile of business travel driven. By multiplying the total miles driven by the mileage rate, one can determine the deduction.

Home Office Deduction
If you have a designated office in your home, you can deduct up to 300 square feet in taxes. The prescribed rate of $5.00 must be multiplied by the square footage of the office. Writing off a home office also takes rent, mortgage, furniture, and other expenses into account. See more on simplifying home office deductions here.

Entertainment, Meals and Gifts for Clients
Taking clients out for lunch to discuss business and dining out on business trips are both acceptable to write off up to 50% if business was the proven highlight of the meal. Keeping track of receipts and other information is crucial, so don’t forget to log your business expenses!

Marketing Materials/Advertising
Traditional forms of advertising such as business cards, yard signs, flyers, and letterhead, as well as digital forms of advertising are all tax deductible.

Uber/Taxi/Lyft Fees
Showings in the city can be a hindrance if you are driving and parking your own vehicle. To save time and money, realtors often use other means of transportation to get their clients to and from different properties.

Office Supplies
Realtors can write off office supply purchases that range from decorations to paper clips.

Desk Fees
The payment agreement between a realtor and his or her broker is deductible. Keep in mind that either the desk fee or the home office fee can be deducted, not both.

Legal or Professional Services
Realtors can deduct any professional service that they hire to make their lives easier, whether it be a law firm, marketing agency, or an accounting firm.