September 2020 Tax Newsletter

October 15 deadline approaches.

“…and all at once, summer collapsed into fall.”   – Oscar Wilde

In this unusual and strange year, the ending days of summer is approaching. Vacations, or chosen "staycations", schools beginning, some still at home, and many areas experiencing the cooler weather signaling the approaching autumn days of chiller mists and changing foliage. 

October 15 Filing Deadline - Tax Returns and FBAR

Many taxpayers who did not meet the July 15 filing deadline filed extensions to file their tax returns by October 15. As we enter September, we are approaching the final deadline for filing to the IRS and various states. Taxpayers with tax liability were required to pay with their extensions by July 15. Those not sending their payments then may be subject to late penalties and interest. 

If you need assistance or advice to complete the U.S. tax return by October 15, and/or FBAR filings, please feel free to contact MIR Taxes.

Covid-19 stimulus payments

Taxpayers who have not received the stimulus payments should file their 2019 tax returns as soon as possible to obtain their aid. Most taxpayers may have to wait until the 2020 tax returns are filed in which tax credits will be issued as refunds. This will include the additional aid for dependent children under 17 years old. 

Non-filers… warning!

If you are not required to file a tax return because of below-the-limit filing thresholds, you must act immediately. Non-filers would include retirees with fixed income, college students that are not dependents, unemployed persons in 2019, and other lower-income individuals.  You can still obtain the stimulus payment of $1,200 by applying directly on the IRS website here. The deadline for non-filers to apply by October 15 or lose the option to obtain the check. 

Another stimulus on the way?

The Congressional members and the Administration have been continuously discussing new aid packages to boost the U.S. economy. However, talks continue with no action. It seems that these Congressional members remain on track of pushing their self-centered issues than placing the American public at the front line. In this election year, partisan cooperation is at its lowest point. 

U.S. Presidential Election Year

While 2020 has been an unusual and strange year with the pandemic, Americans face the option of the presidential elections. Should Americans re-elect President Donald Trump or elect another candidate in former Vice-President Joe Biden? In approximately less than two and half months, the world should know the news. As always, a presidential election is a very important event in the United States and every American should exercise their voice by voting for their candidate of choice. 

Tax Positions by the Presidential Candidates

If you are interested in understanding President’s Trump tax policy, read about it here. 
If you wish to comprehend Joe Biden’s proposed tax policies, read it here. Or perhaps, this article gives more insight on the choice for expats considering "taxwise" decision: "Trump Vs. Biden: Who Should The US Citizen Expat Be Rooting For "Tax-Wise"?"

Additional information on "Impact Of Potential Biden Administration On Estate And Wealth Transfer Planning" can be read here. 

Register to Vote from Abroad

If you are living abroad and have not registered to vote in the upcoming U.S. elections, there is still time. One of my clients forwarded a message to let us know how to get registered. As a fellow American living overseas, she wanted to share this information with us.  The form for an absentee ballot is really easy and  works for all States.  After the form is completed, you must sign and send in the NORMAL MAIL to the address provided for your voting district.  With all the Post Office issues in the U.S., be sure to do this ASAP to ensure your vote is counted.  Please pass the word to other Americans you know living overseas. The link to get your ballots is here.  Thank you TN.

Tax Planning 2020 Before Year-end

Keep in mind that for your 2020 tax return you will be able to obtain a charitable contribution credit of $300. This was provided in the CARES Act. You still have a few more months to make that contribution to your favorite charities. Read more information here.

A recommended charity is the The CHS Helpline: This is a free, 24/7, anonymous and confidential telephone support service in English offering information and support to children, adolescents and adults. It is operated by volunteers who are trained and supervised by professionals. In the US: via KBF’s “Community Help Service ASBL (BE)” fund here.