Blog Layout

Economic Impact Payments under the CARES Act

Here's what you need to know about this program. 

You've probably heard that IRS will be making millions of ''economic impact payments'' in the coming months to help people stay afloat during this time of economic uncertainty related to the COVID-19 crisis. Here's what you need to know about this program. 
 
Amount of payment. 
IRS will soon begin making payments of up to $1,200 to eligible taxpayers or up to $2,400 to married couples filing joint returns. Parents will get an additional $500 for each dependent child under age 17. Thus, the payment for a married couple with two children under 17 will be $3,400.
 
Who is eligible?
U.S. citizens and residents are eligible for a full payment if their adjusted gross income (AGI) is under $75,000 (singles or marrieds filing separately), $122,500 (heads of household), and $150,000 (joint filers). The individual must not be the dependent of another taxpayer and must have a social security number that authorizes employment in the U.S.
 
Phaseout based on income. 
For individuals whose AGI exceeds the above thresholds, the payment amount is phased out at the rate of $5 for each $100 of income. Thus, the payment is completely phased out for single filers with AGI over $99,000 and for joint filers with no children with AGI over $198,000. For a married couple with two children, the payment will be completely phased out if their AGI exceeds $218,000. 
 
How to get a payment. 
The vast majority of people won't have to do anything in order to get an economic impact payment. IRS will calculate and send the payment automatically to those who are eligible. 
If you've already filed your 2019 tax return, IRS will use the AGI and dependents from that return to calculate the payment amount. If you haven't filed for 2019 yet, information from your 2018 return will be used. 
IRS will deposit the payment directly into the bank account reflected on the return. IRS plans to develop a web-based portal for individuals to provide banking information to IRS, so that payments can be received as a direct deposit rather than by check sent in the mail. 
People who are not otherwise required to file a tax return will need to file a simple return to receive an economic impact payment. IRS will soon provide instructions on how to do this. 
 
Payments nontaxable. 
Economic impact payments will not be included in the recipient's income for tax purposes. 
 
Please let us know if you have any questions about the economic impact payments or any other COVID-19 issues.
By Test User November 13, 2024
Monica Dixon Perry to Speak at 2025 WVC Annual ConferenceLas Vegas
October 11, 2024
IR-2024-263, Oct. 10, 2024 WASHINGTON —The Internal Revenue Service announced today continued progress on Employee Retention Credit claims, with processing underway on about 400,000 claims, representing about $10 billion of eligible claims.
October 5, 2024
Monica Dixon Perry, CVPM, will speak at the winter meeting of the Veterinary Management Council of CT. February 12, 2025 8:30AM-12:00PM https://vmcc-ct.org/
September 5, 2024
On Thursday, August 29th, we held our annual state-of-the-firm and company picnic at Owenego Inn located in Branford, CT. The firm recognized the 40th employee anniversary of Partner Melody Mann Fox, CPA. Managing Partner Bill Kalinowski congratulated Melody on her tenure and accomplishments with the firm. Said Ralph L. Ricciardelli, CPA, Emeritus, a founding partner of Burzenski & Company, PC, “Mel, 40 years where does the time go? It’s not easy to build a firm and you’ve done it with a lot of grit, expertise, and professionalism. You have been integral in building the firm. You’ve been integral in helping with the staff, whether it was the administrative staff or the accounting staff. I don’t know what we would do without you. There aren’t enough words of appreciation that we can give to you.” It was a great day for employeea to play games such as bocce, corn hole, Jenga, and a trivia contest with staff split up into teams.
September 1, 2024
At the firm's annual state-of-the-firm and company picnic on August 29th, we recognized the 40th employee anniversary of Partner Melody Mann Fox, CPA. Managing Partner Bill Kalinowski congratulated Melody on her tenure and accomplishments with the firm. Said Ralph L. Ricciardelli, CPA, Emeritus, a founding partner of Burzenski & Company, PC, “Mel, 40 years where does the time go? It’s not easy to build a firm and you’ve done it with a lot of grit, expertise, and professionalism. You have been integral in building the firm. You’ve been integral in helping with the staff, whether it was the administrative staff or the accounting staff. I don’t know what we would do without you. There aren’t enough words of appreciation that we can give to you.”Mel, 40 years where does the time go? I remember when you first came to us in 1984 as a staff person. Our first tax season together was 1985. There was a lot of fun things that happened during those early years that laid the ground work for the future.
September 1, 2024
Monica Dixon Perry, CVPM, our Director of Veterinary Consulting Services, will be presenting on Friday, September 6th at the Veterinary Hospital Managers Association (VHMA) Annual Meeting and Conference. Her topic: Title of Session: Building a Compassionate and Authentic Culture: How to Attract and Keep Your Team
August 18, 2024
As relief medicine continues to rise in popularity, what is the big fuss about it? Within the past few years, there has been tremendous growth within the veterinary industry of professionals making the shift from a traditional career in veterinary medicine to relief work. With the flexibility of making your own schedule, traveling anywhere to work and seeing new places, and becoming your own boss, it can be an easy choice to make the switch to relief medicine.
August 1, 2024
Fetch Kansas City will host Monica Dixon Perry, CVPM, as their Keynote Speaker in Kansas City, MO
July 29, 2024
Monica Dixon Perry to speak at VetPartners Mid-Year Meeting in Kansas City, MO
July 22, 2024
Sarah Williams, formerly of Abilene, TX, has joined the staff at Burzenski & Company, as a Staff Accountant. She earned a Bachelor of Business Administration degree as well as a Master of Accountancy degree from Abilene Christian University in Abilene, TX. Prior to joining our firm, she was as a Tax Associate. She has two cats named Fig and Peach.
More Posts
Share by: