One of the biggest benefits to every US taxpayer with the coronavirus relief package is an extension of the tax deadline from April 15 to July 15. Tax expert Dan Pilla says the filing extension and payment extension comes without any penalties or interest. He says there's even more help if needed.
"There are secondary extensions that are available as well," Pilla told CBN News anchor Mark Martin. "If folks can't file their taxes by July 15 or can't file their returns by July 15th, there are other strategies to get you more time."
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Pilla told CBN News the stimulus checks going to most taxpayers will not be taxable income. He says the criteria for receiving the checks are pretty simple.
"But the key is this... you gotta file a tax return, Mark, to get the money. It's gonna be based on your 2019 tax return or your 2018 tax return. Alright, so, if you haven't filed '19 yet, okay, fine as long as you've filed '18. It's gonna be based on the 2018 income. If you haven't filed either 2019 or 2018, I would say get on the stick and get that tax return filed because if you don't have the return in there, then you're not gonna get the stimulus because that's what it's based on," Pilla explained.
Another huge benefit that Pilla believes will help many folks financially as the world battles this pandemic is a measure that allows withdrawals from retirement savings without tax penalties. People will be allowed to withdraw up to $100,000 from their IRA or 401k and have three years to repay it.
"There's a whole series of reasons you can withdraw the money," Pilla said, explaining it relates to coronavirus complications such as sickness or diagnosis of yourself or family member with the virus, medical bills, reduced work, and lay-offs.
"So, as long as it's an IRA or 401k, which is essentially money you've put into the plan to begin with, you can take that out without penalties and then you've got that payback period," Pilla said.
Watch Mark Martin's entire interview with Dan Pilla above and learn much more about the tax benefits and stimulus checks.