What Quarantine and the Stimulus Check Mean for Your Taxes
Today is April 15th, the date usually thought of as "Tax Day."
In a normal year this would mark the deadline for filing your 2019 tax returns, but 2020 is anything but a normal year. As a result of the coronavirus pandemic and resulting quarantine, the deadline for filing taxes has been extended to July 15th.
The hope is that by mid-summer most ordinary business will be allowed to resume so that individuals and companies will be able to prepare their paperwork, and tax preparation services will be back to their usual operation—or will have made necessary adjustments to do their work safely. With record unemployment and the sudden spike in medical expenses, the delay should also make things easier for people who are struggling to manage their rapidly shifting finances.
It remains to be seen if all these hopes will pan out, but in the meantime there are a number of other factors that deserve to be addressed. In particular, the relationship between stimulus checks currently being rolled out and taxes has become particularly fraught and confusing. Sources have variously claimed that the checks—maxing out at $1,200 per adult, with an additional $500 for dependents—will be counted toward recipients' 2020 taxable income, or that they function as advances on a future tax return, and will thus eat into or eliminate the amount people can expect to receive from the IRS later this year.
NO you do not have to pay the stimulus money back, NO it will not be deducted from your 2020 tax refund, NO you wonâ�¦ https://t.co/N4XyQVHIE5— polly watson (@polly watson) 1586755532.0
Fortunately, both of these assertions are false. However much you receive in your check—or deposited directly into your account—it will not affect your income for tax purposes, nor will it have any impact on the amount you receive in your refund. That said, that extra money may not be as miraculous as many people are hoping. While the first payments are arriving in people's accounts as we speak, others will see those badly-needed funds delayed for up to five months, and many will not receive as much as they should rightly expect.
People whose are set up to receive direct deposits from the IRS or the Social Security Administration will get their payments quickly, but for those of us waiting on a check in the mail, the first round won't arrive until sometime in May. The issue is that the IRS has a physical limit on the number of checks they can print and ship out—with the added delay of Donald Trump's all-important signature—and with so many people scheduled to receive stimulus money, that capacity becomes a serious drag on the process.
The other major issue is with the way the amounts are calculated. Individuals with incomes over $75,000 will receive smaller amounts, while the threshold is set at $112,500 for the head of a household and $150,000 for joint filers. Every $100 of income over the threshold will reduce your check by $5—so an individual with an income of $80,000 should receive $950 ($250 less than someone who earned $75,000), and an individual with an income of $99,000 won't receive any stimulus money at all.
Woke up this morning to find my stimulus check AND tax refund in my bank account. ð���ð��¾ð���ð��¾ð���ð��¾ https://t.co/PApnZbCHQK— Kirby R. Gibson, M.S. ð��� (@Kirby R. Gibson, M.S. ð���) 1586949210.0
The real problem arises from the fact that the income used for these calculations is based on the most recent tax return you filed. So people who earned a lot more in 2019 than they did in 2018 would benefit if they haven't filed yet (although any refund they're entitled to will obviously be delayed), while people whose income dropped in 2019 will receive more stimulus money if they chose to file early. On top of that mess, some may see their checks go straight to debt collectors.
It will take months before we have real a sense of how much the stimulus money and the delay of tax season have actually helped people, but the least we can do in the meantime is try to reduce the noise and confusion around these issues.
- Get Your 2020 Stimulus Check As Soon As Possible with TurboTax® ›
- Will my stimulus check be affected if I owe taxes or child support? ›
- How to get a stimulus check if you don't usually get a tax refund ... ›
- VERIFY: The stimulus checks won't impact your tax refund next year ... ›
- Why your stimulus check won't lower your tax refund - Business Insider ›
- IRS extends more tax filing deadlines - The Washington Post ›
- Will Your Coronavirus Stimulus Check Count Against Your 2020 Tax ... ›
- Here's What Happens To Your Stimulus Check If You Got Your Tax ... ›
- Is Your Stimulus Check Just An Advance Your Tax Refund? | Money ›
- All You Wanted To Know About Those Tax Stimulus Checks But ... ›
Every time payday rolls around, I’m on top of the world. Jeff Bezos-level rich - even though I’m anything but. And then somehow the very next day, rent is due.
The cycle continues. The next payday, bills for my apartment. I find myself without a surplus of savings since I just moved and newly-furnished my apartment completely.
Even more terrifying is the looming presence of the holiday season. Halloween’s officially over and before we know it, hello Thanksgiving…and then there’s Hanukkah, Christmas, New Year’s. It’s insane.
I’ve been feeling very British lately. Not in a Union-Jack-obsessed, “Keep Calm and Carry-On” way. I went through that phase in 2012 with everyone else… no thank you. And it’s not even a surge of patriotism catalyzed by the Queen dying — I’m firmly team Diana and team Meghan.
Now that fall is officially here, the holidays will sweep in and I’ll have to contend with the fact that I won’t be spending them with my family in the UK. I went home to London earlier this year, so there’s not much left in my travel budget for another trip across the pond. A few domestic jaunts might be in my future, but the closest I’ll get to England this winter is watching Love Island and Love, Actually.
So in that spirit, I’ve been filling my days with content from my favorite Brits. I’m listening to all the old British rock bands I grew up listening to, patiently awaiting the new Arctic Monkeys album, and rewatching anything with Michaela Coel in it. I even shipped myself an order of British Baked Beans, so you know it’s dire.
I’ve also been watching British YouTubers like Grace Beverley — my favorite. Generally, I only go on YouTube to watch Vogue Beauty Secrets and AD Open Door videos. But I’m so glad I stumbled on Grace. Her content is a mix of London lifestyle (what lured me in), relatable entrepreneurship, and mindful productivity. I’m not a hustle-and-grind-girlboss, but as a creative person in a 9-to-5, I need all the help I can get to stay plugged in. So, the video “how to be really really really productive without getting overwhelmed” changed my approach to WFH.
Grace outlines her own productivity method: the to-do table. Instead of making a simple to-do list, she divides her tasks into a table that anyone can follow. As someone who’s survived with to-do lists for years, I recently implemented Grace’s method, and it’s revolutionized my workdays.
how to be really really really productive without getting overwhelmedwww.youtube.com
I follow her routine to a tee. Here’s how it works:
Essentially, she divides her daily responsibilities into four categories: quick ticks, tasks, projects, and non-negotiables.
- Quick Ticks: Actions that take less than 5-minutes
- Tasks: To-do’s that take up to 30-minutes. Probably don’t take too much brain energy.
- Projects: Long-term list items. These help guide your priorities, even if you’re not crossing them off in one day.
- Non-negotiables: Pick 3 things each day that you must get done. This is how you’ll truly measure success.
With everything written down and sorted, next address your schedule. Meetings, deadlines, and time blocks — whatever works best for you. Write it down. Then make a pact with yourself to stick to them.
This way of categorization provides a roadmap for prioritizing your day — making you far more productive. Have you ever spent the entire day on small tasks and then suddenly realized you hadn’t moved the needle on any task? Or do you spend way too much time on tasks that aren’t a priority? No more. With your non-negotiables laid out, you know what to laser-focus on and what to dedicate energy towards.
Also, it pays to know your working style. I’m not a morning person. Yet, I have to be up and at ‘em super early. So, first thing in the morning, I march through my Quick Ticks to warm me up. I set a time limit, so I can knock out some easy wins which is totally inspiring. Then I move on to bigger things without lingering on emails or admin. For others, it might be more helpful to tackle the big things with all that early-in-the-day brain power earlier.
Grace has great tips on avoiding overwhelm and burnout. My favorite is taking more intentional breaks rather than scrolling through social media. I call this scrolling “productive” because I’m “coming up with pitches.” Oh, the lies we tell ourselves. It’s more productive in the long run to giving my brain a break with non-screen related stimuli.
Grace’s solution? Set a timer to read a real, an actual book. I’ve never thought of this. It’s a genius way to check off some books on my TBR and kickstart my creativity. After reading a good book, I’m completely inspired to write. So having books near my desk helps me step away from the computer during my lunch break for an actual reset. (And yes, the current books I’m reading are by British authors: Assembly by Natasha Brown, and Love in Color: Mythical Tales from Around the World, Retold by Bolu Babalolu.)
In my pursuit of switching out my WFH set-up and getting my life together, I’ve engineered my workstation for success. With my new WFH essentials and Grace’s productivity technique, I’m revitalized for work — despite the fall blues and my melancholy about the pending holidays.
Here are the things getting me hyped for work and helping me crush my Grace Beverley-inspired to-do tables — no lists in sight:
Pack your bags — Southwest Airlines is having a major sale! Fares are as low as $59 one-way if you book by October 3rd.
This end-of-summer super sale is a game-changer for your travel plans through the end of the year. Summertime travel gets all the glory. But why not take advantage of your long weekends, holidays, and PTO this fall. You’ll be surprised at how much travel you can fit in. Keep the fall/winter season exciting with domestic trips that give you all the excitement without breaking the bank. All thanks to Southwest.
Here’s the breakdown:
Where can you go?
You’ll find discounted tickets to and from most airports. Sale fares apply to cross country travel, and even Hawaii, Mexico, and the Caribbean! Whether you’re visiting a new city or revisiting your last beach vacation, this sale has fares to make your travel dreams come true.
What do the fares cover?
Southwest Airlines has multiple fare tiers, each with various benefits. Wanna Get Away fares start at $59, while Wanna Get Away Plus fares start at $89. You can also find great deals on Anytime fares, which offer priority boarding and express lanes. Then there’s Business Select tickets for a luxe experience at an affordable price point.
Do you have to be a Southwest Rapid Rewards member?
You may think these sale fares are too good to be true. Is there a catch? Do you have to be a Southwest Rapid Rewards member to access them? You’re in luck — anyone can attain these fares for a limited time.
But, insider tip, you should consider signing up for Southwest Rapid Rewards. With a free sign up, you earn points and miles with each trip you take. And with this sale, each dollar you spend on these discounted tix can stretch super far until you eventually earn free travel. The only thing better than a sale is free stuff.
I’ve been browsing the Southwest Airlines site, checking out flights and dreaming.