The $600 Stimulus Bill Tax Changes

The New Stimulus Check:

The amounts for this are $600 for each adult individual (meaning a married couple filing jointly gets $1200) as well as dependents age 16 or under as of 2019. The rules are almost exactly the same as the previous checks, which are covered in great detail in older posts on the subject. Here I am going to cover things in a lot less detail, highlighting the major differences.

First, if the place your first stimulus went is still active, the new stimulus should go there, and you don’t need to take any action. If it is not still open, you can update it at irs.gov using the big “Get My Economic Impact Payment” button. The button doesn’t do much right now since they are still programming for the new payment, but it should be soon.

Payments are based on 2019 tax returns, social security or VA disability information for non-filers, or information you provided for the previous $1200 payments. They are tax free advances on your 2020 taxes and will be recalculated when you file your 2020 tax return, and any additional money you are due will be provided then, but no repayment is due if you would have been entitled to less.

I highly recommend e-filing a 2020 tax return, using direct deposit if possible, to make sure you get everything you are entitled to, and to keep your information with the IRS as up to date as possible. Who knows, they may want to send more money! I think this is one of the enduring tax lessons from the pandemic – file a tax return even when not required.

The income limitations for the new stimulus payments were slightly modified from the previous ones. The phaseout starts at the same point, but the payments go down faster as your income goes up. Phaseout starts at $75,000 for Single and Married Filing Separate (MFS) filers, $112,500 for Head of Household (HH), and $150,000 for Married Filing Joint and Qualified Widowers (MFJ/QW). If your income is below those numbers, you should get a full payment. Single and MFS filers get nothing once income hits $87,000 and MFJ/QW filers get nothing when income hits $174,000. HH goes away at $124,000.

The Rest of the Tax Changes (from the latest bill):

This is a broad overview of the rule changes.

1. Charity: You can deduct up to $300 in cash contributions to charity on 2020 even if you don’t normally itemize. Cash means cash/check/credit but not donation of things or time. There is a penalty of 20% of taxes for cheating on this. For 2021 the limit is $600 and the penalty 50%. You can also donate up to 100% of your Adjusted Gross Income in cash to charities in 2020 and 2021 (old limit was 50% and 60% depending on the year) 

2. Retirement Plans: The period for 401k and IRA exemption from the 10% penalty on withdrawals from these plans due to COVID was extended to 60 days after 12/27/2020 (2/25/2021 if my math is correct). This applies to up to $100,000 in withdrawals due to COVID and the rules allowing stretching taxes for three years or repaying within 3 years apply to these withdrawals. Basically, you can take money out, up to $100,000 due to needing it for COVID caused problems all the way out to late February of 2021, though you can’t pull $100,000 in 2020 AND 2021. The $100,000 limit applies to ALL Coronavirus distributions.

3. Disaster Losses: The changes to deducting disaster losses above $500 due to COVID was also extended for 60 days after December 27th, 2020. This suspended the 10% of income rule that meant that a disaster had to be ENORMOUS before it made a difference on your taxes.

4. Business Meal Deduction: I have heard this one called the “3 Martini Lunch Rule”. For 2021 and 2022, the 50% limit on meal deduction for businesses was raised to 100%. Simply put, a business owner can deduct 100% of business-related meals including those with clients.

5. Education Credits: The Tuition and Fees Deduction will be in effect for 2020, but not after. The Lifetime Learning Credit and American Opportunity Credit will have their income limits matched (The LLC limit raised to equal the AOC limit) starting in 2021.

6. Sick and Family Leave: The qualifying period for employers to claim credits for paying employees while they are out sick or taking care of family due to COVID was extended to 3/31/2021. This applies to self-employed taxpayers who are out sick or shutdown and the law allows them to calculate based on 2019 or 2020 income whichever is better.

7. Payroll Tax Holiday: For those who took advantage of not having to pay Social Security Tax in the last quarter of 2020, the payback period has been extended for all of 2021, vice just the first few months. This means paybacks will be smaller, but last longer. This mostly applies to military and some Federal employees, though some civilian employers might have allowed opting in.

8. Paycheck Protection Program: More money was made available and eligible employers can come for more money if they meet certain requirements. The law was clarified to explicitly state that even if the loan is forgiven, expenses paid by loan proceeds remain deductible if allowed by current tax law.

9. Earned Income Tax Credit (and child credits): You can use 2019 income vice 2020 income if it gets better results. This applies to EITC, Child Tax Credit and Additional Child Tax Credit. You use 2019 income for calculating all of them or none of them. You can’t pick and choose.

10. Educator Expense: The $250 deduction for teachers paying for classroom supplies includes costs for protective equipment and other COVID related supplies such as masks or disinfectants.   

11. Flexible Spending Accounts: Normally these accounts, which are usually used for childcare and health care, must be used before the end of the calendar year or the money is lost. Employers have several options for relief in this case, including allowing rollover of money to be used in 2021. Also, money for childcare normally has to be used only for children under the age of 13. This age limit was raised to under 14 for 2021 only.

Changes to Expiring Tax Provisions:

Mortgage Insurance Premiums remain deductible into 2021

Principle Residence Cancelled Debt Exclusion was extended through 2025, but the amount allowed to be excluded was reduced to $750,000 ($375,000 if MFS) starting in 2022.

The Non-Business Energy Efficient Credit was extended to 2021.

Exclusion of employer paid student loans of up to $5250 per year was extended through 2025.

The Solar Credit phaseout was modified and slightly extended. The percentage used for calculating the credit is 26% in 2021 and 2022, and 22% in 2023. The credit is not currently available for 2024 and later.

The increase in the percentage above which medical expenses were deductible was permanently changed back to 7.5%. It was supposed to go up to 10% with the passage of the Affordable Care Act but has been pushed of repeatedly and is now finally dead.

Another Round of Stimulus Checks...

Details are sketchy, but it looks like $600 checks per individual are coming, with $600 for dependents under 17 vice the $500 from before.

Probably will be sent out in a similar manner to the last set, and if you ultimately got the old ones, especially via direct deposit, you should be good for this set.

They should be coming very soon, as early as next week (just after Christmas).

Outstanding questions abound. For me, I am wondering if these will be an advance on 2020 taxes like the old ones, or an advance on 2021. The information is probably out there, but I'm going to give it a day or two to get settled before I really dig in to it.

If You are Self Employed and Couldn't Work due to Coronavirus

Photo by Kelly Sikkema

If you are unable to work or engage in your business as a result of quarantines, shutdowns, getting sick, school/daycare closings or various other reasons, you might be entitled to one or both of credits for sick leave or family leave. These credits are for employers to recoup payments they make to their employees who are unable to work for the above reasons. But, if you would have been entitled to these credits as an employee doing what you do, you qualify for them as the employer of yourself. In this case the government pays you for being unable to work for yourself. 

Exactly how to define what makes the work you do qualifying as an employee is a bit nebulous, but it seems like a fairly liberal interpretation is appropriate, so I would go into conversations with you tax guy assuming you might qualify, and have the information required for them to calculate the credit rather than waiting to find out if you qualify. There were ways to get this money in advance, by reducing estimated payments, but it’s pretty much too late for that to be effective, though you can reduce your Estimated Payment due on January 15^th to account for the amount of credit you are entitled to. Either way, you claim the credit on your 2020 tax return and it reduces your balance due or increases your refund. 

This sucker gets complicated, so I’m going to start with a link to the IRS FAQ on the subject: 

https://www.irs.gov/newsroom/special-issues-for-employees#specific-provisions-related-self-employed-individuals 

I’m going to try my best to simplify how these work, but you absolutely need professional help to get these right. After discussing the various credits, I’m going to list the information you want to have available for when you file taxes. 

Qualified Sick Leave Wages Credit: 

1. You get up to 10 days worth of this credit.

2. If YOU are unable to work or telework because the government shut you down, ordered a quarantine, a doctor quarantined you due to being exposed, you had symptoms and were waiting for a diagnosis, or you actually had the disease you are entitled to $511 per day or 100% of your average daily earnings, whichever is lower, for each day you could not work.

3. If you cannot work because you are caring for SOMEONE ELSE due to conditions similar to the above, or due to the closing of a school, daycare or other facility, or your daycare provider is unable to work, you are entitled to $200 per day or 67% of your average daily earnings, whichever is lower, for each day you could not work.

4. Average daily earnings are your net earnings from your business divided by 260. You get this number when you prepare your taxes as the bottom line on Schedule C.

5. If you received sick wages as an employee with a regular job, you have to reduce these credits by the amount of wages you were paid while not working (no double dipping).

6. This credit is not counted as income, even though it technically replaces income.

 Qualified Family Leave Wages Credit: 

1. This is VERY similar to the situation described in 3 above, but basically takes over where the 10 days above end.

2. You get 50 days worth of this credit.

3. You get this credit for any day you would have been qualified for Family Leave wages due to COVID if you were an employee (basically the situation described in 3 above). You are entitled to $200 per day or 67% of your average daily earnings, whichever is lower, for each day you could not work.

4. Average daily earnings are your net earnings from your business divided by 260. You get this number when you prepare your taxes as the bottom line on Schedule C.

5. If you received family leave wages as an employee with a regular job, you have to reduce these credits by the amount of wages you were paid while not working (no double dipping).

6. This credit is not counted as income, even though it technically replaces income. 

Information you should provide to your tax dude: 

1. Proof, as best you can get, of the situations discussed above. This could be doctor’s notes, notices from schools or daycare facilities, quarantine or shutdown notices, COVID test results, copies of government statements regarding allowed working conditions, or even newspaper articles reporting on work rules and quarantines.

2. The number of days you were unable to work due to YOU being affected by quarantines, shutdowns etc. as previously discussed.

3. The number of days you were unable to work due to caring for someone else as a result of quarantines, closures etc. as discussed previously.

4. The detailed reasons you were unable to work or make money for the days discussed above.

Getting a Stimulus Check When You Didn't Direct deposit a Refund in 2019 (or 2018)

The IRS "Get Your Payment" app is live: Access by clicking HERE

UPDATE (5/12): The IRS says people have until noon on 5/13 to update direct deposit information. I assume this applies to people who filed a while ago and that recent filers will have more time.

You use this app if you filed a 2018 or 2019 tax return, but did not have a REFUND direct deposited into your account. If you OWED...this is the app for you.

You can also use the app to get a status of your payment, even if you expect it to be deposited normally.

The non-filer app is on the same page, use that one if you didn't file a 2018 or 2019 return, and you don't get Social Security (unless you get Social Security and have dependents or a spouse who do not).

To use the app, you click on the blue "Get My Payment" button.
Enter the primary taxpayer's SSN, birthday (I included the slashes and it worked) and the address from the last tax return filed. Make sure the address matches the return exactly - specifically - make sure to abbreviate or not abbreviate Rd, Street, etc as it appears on the return.
This will give you the status of your payment and tell you if the IRS needs direct deposit information. It doesn't appear that you can UPDATE direct deposit information if it has changed.
To provide direct deposit information, you enter the Adjusted Gross Income from your 2019 return (or 2018 if 2019 not filed), indicate if it was a refund or balance due on that return, and provide the amount of the refund or balance due. You enter your routing and account number twice, and then the IRS confirms that your deposit information has been updated.

Not sure how long it takes to get the deposit after this...

Remote Tax Preparation in the Age of CoronaVirus

These instructions are provided to assist my current and referred clients (or brand new clients) with preparing taxes remotely through Lighthouse Tax.


The best way to do this is to email me at taxadvisor@email.com and give me your name, phone number and email address. With that, I will share a drop box folder that only we can access. You can upload your documents there. You can also email them directly to me, but you do that at your own risk. I also need a copy of your 2019 tax return and birthdays for everyone in the household.


Once I have the documents, I will prepare the tax return and send emails to confirm information, or ask for additional documents. Once I have a good result, I will send them to you with any discussion or additional information, to make sure you are okay with the result and fees. If you aren't satisfied at this point, there is no obligation to pay and you are free to let me know that you will not be filing with me. I will also either ask for your direct deposit information if not already provided, or confirm the last 4 digits of the account number to make sure it hasn't changed.


After you confirm you are ready to go, I will send you an email with a brief discussion of the approval process, and discuss how to pay the fees, and sign documents via a drop box shared folder.


At no point in this process should you go more than 48 hours without getting a response from me if you have sent information, unless I have informed you I won't be available. So if you don't get a response - ping me again.


Here is a fairly comprehensive list of documents to include:
Write up a quick document that summarizes your 2020 life/tax situation - include the name, SSN, birthday and relationship of everyone in the household. You can also include information here that you might have receipts for, but that are too cumbersome to scan, such as charitable donations, car taxes, gas receipts, business/rental expenses, college book costs, list of Goodwill type items donated etc.
Send a picture of your driver's license (and spouses). If you want fees pulled from the refund, I also need a picture of you holding the license near your face so we can verify identity.
A digital copy of your 2019 tax return is important.

Birthdays for everyone in the household.

Name, SSN and birthday for any new children.

The amount of any stimulus you received and date received.
W-2's for jobs
1099's for investments
1098's for mortgages
1098E's for student loans
1098T for college
Daycare statements
1099MISC for business or rental income
1099SA if you have Health Savings Accounts and spent money from them.
1099R's for pensions or retirement withdrawals.
SSA1099 for Social Security
Car taxes paid
Sales tax paid on cars or boats purchased during the year, if you don't pay state income taxes
For businesses include a summary list of categorized expenses, or a list of all expenses paid.
For rentals, provide rental income and expenses, and I will ask for further information as I need it.

Filing A Tax Return When Not Required In Order To Get A Stimulus Check

The IRS is going to send stimulus checks based on a 2019 or 2018 tax return. You might need to file a tax return in 2019 to get your stimulus check. Here are a few scenarios where it might be required and all of these assume you don't already have a 2018 tax return that has proper information for your income and direct deposit information:


Instead of doing the $1 returns below, the IRS now has a free non-filer system available by clicking HERE.




1. You made too little income in 2019 to require a tax return and are not claimed as a dependent in 2019. In this case, prepare a tax return using your income documents and provide direct deposit information for the refund. If the return says it cannot be filed due to no income, enter $1 on a 1099INT form (bank interest) and put "Stimulus Payment" as the bank name.
2. You receive Social Security, but your spouse does not receive Social Security or you have dependents. In this case, file a tax return (jointly if married) claiming all dependents and including the Social Security 1099 in the return. Enter $1 on a 1099INT form (bank interest) and put "Stimulus Payment" as the bank name. Obviously provide direct deposit information for the zero tax return.
3. You have no reportable income and are not claimed as a dependent. File a tax return and enter $1 on a 1099INT form (bank interest) and put "Stimulus Payment" as the bank name. Obviously provide direct deposit information for the zero tax return.


You don't need to file a return to get your stimulus if you, and your spouse, if married, receive Social Security (or Railroad retirement) and have it direct deposited and have no dependents.


Most of the scenarios above will qualify for free filing using online software and many professional tax preparation companies are offering some of these tax returns fee free. You should NOT file a state return unless there is sufficient refund to justify the fees (assuming you don't have a state filing requirement, which you shouldn't if you're in need of this post). A state tax return is NOT required to get the stimulus payment.

The BIG Coronavirus Link Post

Just a bunch of tax and non-tax information for those interested. Check back for additional information as I add it:

SuperTaxGenius Master Index (with a Section on the Virus)

Taxes and Stimulus Payments:

IRS.gov Coronavirus Page
IRS.gov Stimulus (Economic Impact Payment) Page
H&R Block's Stimulus Calculator
Treasury Page for Social security recipients about Stimulus Checks
Slideshow with Information About Sick Leave and Medical Leave Changes
Forbes FAQ on Stimulus Checks
Forbes on Stimulus Scams

Business and Economic Information:

Treasury's Comprehensive Page on Coronavirus Programs
Small Business Administrations Coronavirus Page with Loan Resources
South Carolina SBA and Home Mortgage Broker I Trust

Education and General Information:

Full Text of CARES Act (the big stimulus bill)
Veteran's Administration Coronavirus FAQ's
Centers for Disease Control Coronavirus Page
Trillium Ayurveda Spring Emergency Kits
How Stuff Works Coronavirus Education
WebMD Coronavirus Page

The NERD Section (Thanks to Anthony Crego for much of this):

COVID-19 Projections Website
The Hammer and the Dance
Taiwan and COVID-19 Response
Five Thirty Eight Weighs in on Testing

Politics:

The Hill thinks making people who don't normally have to file a tax return file one to get a stimulus check is a bad idea. I'm waiting to see what the "simple" return process is: The Hill's Blog Post about Needless tax Filing to get Checks

AOC thinks young people should file independently to get their stimulus check. I think this is a BAD idea without first checking with a tax professional and their parents. You can't just DECIDE you are independent and the cost may be worse than the benefit. But she's right that there is a donut hole here: https://dnyuz.com/2020/04/04/aoc-offers-advice-for-young-people-to-get-around-stimulus-check-exclusion/

The New York Times loves deficit spending: https://www.nytimes.com/2020/03/27/upshot/stimulus-national-debt-coronavirus.html, Reason hates it, of course: https://reason.com/2020/03/06/no-stimulus-spending-wouldnt-be-an-economic-vaccine-against-the-coronavirus/

In the, "Things Everybody Already Knew" category, China lied about the extent of the virus and hundreds of thousands of people are going to die that didn't need to because of it. See also: No one will hold them accountable: https://www.bloomberg.com/news/articles/2020-04-01/china-concealed-extent-of-virus-outbreak-u-s-intelligence-says?fbclid=IwAR3wEQ2NA1xZJG521ar1liYR4TtUQ_OTaNqzY00Si17l2Gs-NnsxClApsmI

More on China: https://news.sky.com/story/coronavirus-anger-is-growing-at-china-over-covid-19-and-its-apparent-cover-up-attempt-11966539

Ronald Bailey is a regular with fighting panic: https://reason.com/2020/04/03/what-percentage-of-covid-19-patients-are-likely-to-die/

Coronavirus Stimulus Checks

This is the post everyone wants to read.
How much am I getting and what do I need to do?

For most people, the answer is $1200 per taxpayer and spouse (each) and $500 for each dependent under age 17 and you don't need to do anything. Specifically, if you filed a 2019 tax return, made less than $75,000 filing Single or Married Filing Separately, $112,500 Head of Household, $150,000 Married Filing Jointly, and had direct deposit to an account that is still active, you will be getting a deposit in short order and don't need to do anything. If the last tax return you filed was 2018, and the above limits were met, you also will get the payment and don't need to do anything.

Who won't get a check:
People 17 or older who are claimed as a dependent.
Single or Married Filing Separately taxpayers who made more than $99,000 and no children under 17.
Head of Household taxpayers who made more than $136,500 and had no children under 17.
Married Filing Joint taxpayers who made over $198,000 and had no children under 17.

If you don't meet the criteria of the previous two paragraphs, use the calculator from H&R Block to see what you get: https://www.hrblock.com/coronavirus-tax-impact/calculator/

Who needs to do something:
People who did not provide direct deposit information on their latest tax return. This includes people who owed, regardless of if they used direct debit. The IRS has provided a portal for updating direct deposit information to get your check faster, otherwise it can take up to TWENTY weeks to get your check. The IRS will prioritize lower incomes for check mailing. The "Get My Payment" portal is prominently displayed on irs.gov. On 5/12, the IRS said filers had until noon on 5/13 to update direct deposit information to avoid getting a check. I assume this does not apply to people who filed in the last couple of weeks.
People who did not file a 2018 or 2019 tax return. File a return as soon as possible to get your tax return unless you receive Social Security and have it direct deposited AND you have no dependents and your spouse also receives Social Security. If not, you might want to file a "simple" return which the IRS says to do using $1 of interest labelled as "Stimulus Payment" as if it was received on a 1099INT. Click HERE for instructions.
People who filed a 2018 tax return and made too much money to qualify, or who have kids born in 2019. File a 2019 tax return to make sure you get the full amount of the check.
People who have closed or changed the bank account to which their last tax return was directed: The IRS says it will provide a portal for updating direct deposit information. I will provide details when the IRS provides it.
People without a bank account who have moved: Update your address with the IRS using Form 8822 ASAP!

What if you aren't required to file and don't receive Social Security: You might want to file a "simple" return which the IRS says to do using $1 of interest labelled as "Stimulus Payment" as if it was received on a 1099INT. I will have instructions for this in a separate post shortly...check the Master Index to find it. Alternatively, you might qualify to file a tax return if you have a W-2. In this case, get on it and file. I believe H&R Block is planning on filing these for free, even using an office (via drop-off or online approval in most cases). If you have only non-taxable income such as VA disability, you need to file a "simple" tax return. Click HERE for instructions.

What to do if you owe for 2019 and haven't filed: File your tax return ASAP and then use the forthcoming portal to proved direct deposit information to the IRS. This will ensure your stimulus payment is dropped to that account and will be available to cover your balance due (or to spend).

What happens if I don't file a 2018 or 2019 tax return, or made too much money on the latest filed tax return to qualify? The payment is truly based on your 2020 tax return, so if you qualify for a payment but didn't get it (or qualify for a larger one) it will be provided on your 2020 tax return.

Is the payment taxable? Do I have to pay it back? What if I make more money in 2020 such that I shouldn't have qualified? The payment IS an advance on your 2020 tax return but the amount is from a brand NEW credit that increases your 2020 tax return. It is not taxable, it does not have to be paid back. I'm not 100% certain, but, every other time they did this, if you qualify for a bigger payment on your 2020 tax return, you get the extra. If you deserve less, they let it go.

The IRS will send you a letter detailing the amount you should have received and how it was calculated.

Weird tricks:
A child over 17 on your tax return gets you $500. Filing independently they could get $1200.
Filing separately if one person has a big income and the other doesn't could get you a stimulus check when otherwise not entitled due to income, but will probably f**k up your tax return.
If your 2018 tax return met the above requirements and your 2019 doesn't, and you haven't filed 2019 yet, you should wait to file until after you get your stimulus payment.

Scams: No one is going to call or email you requesting you provide direct deposit information, personal information or have you pay money upfront to get the payment. The scams haven't started...but they will.

Coronavirus Tax Post - Stimulus Checks and MORE

I'm going to try to consolidate all the Coronavirus stuff that I think is important into one tax post...
A lot of this is very early interpretations of the laws and guidance, and is subject to changing at any time.

First: The IRS is currently not manning their live phone lines. So don't try to call.

Second: You don't have to take your 2020 Required Minimum Distribution from your Retirement Account. This applies to people over the age of 70 and a half who have to take annual withdrawals from their tax advantaged accounts and pay taxes on them. This is an under-reported and under-appreciated big deal. I highly recommend taking advantage of this if you don't need the money from your account. Pulling money out during a dramatic stock market downturn is painful.

Third: You don't have to pay your balance due for 2019 until 7/15/2020. Most states are following suit. You also don't have to make your first Estimated tax payment for 2020 until 7/15/2020, though, ironically, the 6/15/2020 payment is still due on time. If you scheduled a direct debit for 4/15/2020, you can cancel the payment by calling the IRS. Here is what they say about it: "Call IRS e-file Payment Services 24/7 at 1-888-353-4537 to inquire about or cancel your payment, but please wait 7 to 10 days after your return was accepted before calling. Cancellation requests must be received no later than 11:59 p.m. ET two business days prior to the scheduled payment date."

Fourth: If you suffered economic impact from the Coronavirus, specifically, you or a family member you care for contracted the disease, or you lost your job or lost business or were laid off, or lost business income due to the virus, you can withdraw up to $100,000 from your retirement accounts without penalty and with the ability to pay the taxes due over three years, or put the money back and pay no taxes. The connection and calculations between the economic impact and the withdrawal amounts are not clearly defined. There are also changes to loan requirements and costs associated with making a hardship withdrawal. I DO NOT recommend doing this unless ABSOLUTELY necessary and only withdraw the minimum amount possible to keep your family alive. In fact, there are so many programs available to defer rent, mortgages and student loan payments that this should not be necessary.

Fifth: Things I don't know jack about: There is greatly expanded ability to get unemployment benefits if you have reduced income vice full job loss, and for self-employed people. There are amazing small business loan opportunities, some of which don't require paying back (go to sba.gov). There are programs that limit the ability to evict people based on non-payment of rent, guaranteed deferment of mortgage payments for government backed loans, and deferment of student loan payments.

Sixth: There are a bunch of useful resources out there. I will have another post with these linked. See the Master Index Coronavirus section to find it.

Seventh: You might have heard that stimulus checks are coming. I'm writing a BIG post on that. See the Master Index Coronavirus section to find it.

Eighth: The IRS has suspended pulling back taxes, delinquent student loans and other debts from tax refunds and stimulus payments. Delinquent Child Support withdrawals are still happening on a state by state basis.

Coronavius COVID-19 and Getting Your Taxes Done

So how do you get your taxes done if you are self-quarantined?
Is it safe to go to an office for tax preparation?

I don't really know the answer to the second question, but the first one is easy.

First, don't panic. If you are getting a refund, the IRS doesn't care if you are late. If you owe money, there's a good chance that relief from penalties will be in the offing.

But if you really need them done...you have options.

At home software (which I hate) is obviously unaffected by quarantining. If your taxes are simple, you have a good understanding of taxes, and you are willing to download appropriate manuals and instructions, then you can probably do a passable job. I do mean DOWNLOAD THE TAX FORM INSTRUCTIONS! Complete reliance on software is a TERRIBLE idea.

But what if you need a professional?
First thing, give yours a call and see what they can do. Many professionals have remote systems established for online exchange of forms and approvals. Those that don't can probably set something up. At the very least they can keep you updated on what the rules are and advise about extensions.

H&R Block has a completely established remote preparation system, though most of their tax professionals will have never used it. Give yours an email and ask if it is available for you.

Last resort...I do hundreds of remote tax returns.
Email me at kirk.taylor@tax.hrblock.com for advice and instructions on remote tax preparation. I'm pretty busy, but I'm making time to help affected people. Most remote tax preparation can be done in 48 hours. Less if you are responding to my emails quickly. That said, there's no way of knowing how the virus is going to shift demand, but I'll always keep you informed.

And DON'T PANIC!
Everything is going to be fine.