This Quarter’s Topics

2019 Refunds

RMD’s Waived

Stimulus

Retirement
Penalties

2019 Refunds

The IRS stopped processing paper returns when quarantines were implemented. This delayed 2019 refunds.  Many pastors have told us they have now received their refund checks but we are still getting calls daily from others that are still waiting.  In the meantime, the IRS is still asking people not to call and ask about their refund, and not to file a second return.

The IRS is paying interest on delayed refunds so if your refund is higher than expected because you receive your refund with interest you do not need to contact us.  Any interest will need to be reported on your 2020 tax return as interest income. 

RMD’s Waived

Don’t forget…the RMD rule is suspended for 2020.  You are not required to take a required minimum distribution from your pension or IRA. 

Stimulus

If you did not receive an Economic Impact Payment (stimulus check) OR you received an incorrect amount,  we will rectify that on your 2020 tax return.  There will be a new question on the tax data questionnaire asking you what amount you received.  You MUST fill in this question in order for us to prepare your tax return and if you did not receive a payment you must write in a zero for this question.  DO NOT LEAVE IT BLANK!

If you receive a payment that was too high you will not be required to pay back any part of the payment unless you received a portion for someone who was deceased before 2020, that portion you will be required to pay back.  If you had a child during 2020 you will receive their portion on your 2020 tax return.

Retirement Penalties Waived for COVID

If you have COVID related financial needs, you should be able to get an early distribution from your IRA or pension without paying any penalties.  Check with your investment broker for details.

Sincerely in Christ,

James W. Rickard

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