Morgan Hill, CA Tax Preparation & Accounting Firm, NorCal Business & Tax Services, Inc.

We are a full-service Accounting firm licensed in CA. We offer a broad range of services for business owners, executives, and independent professionals. We are affordable, experienced, and friendly.

The tax deadline to file and to pay has been extended one month. This is due to new mid-season tax law changes along with added workload which has accrued for the respected government agencies & tax professionals.

New deadline (solely in respect to individual tax requirements) for the State of CA, Franchise Tax Board & the Internal Revenue Service now is May 17th, 2021. (If you do not reside in California, refer to your state laws to be sure they have also conformed with the IRS in extending individual tax deadlines for 1 month.

Stimulus/COVID Relief payments

and the

American Rescue Plan Act of 2021

(What should I expect, and when should I expect them?) 

Federal economic recovery initatives have been passed during this unprecedented COVID-19 pandemic

Here are some things to know about federal aid you may be eligible

The relief/stimulus checks (meeting requirements set forth by the 3 recent relief bills, in facilitation by the Internal Revenue Service) would have been issued in March of 2020, Late December 2020 or early January of 2021, and the newest started March of 2021 after the American Rescue Plan Act of 2021 was signed into law by Presiden Joe Biden on March 11th. These are current being distributed. To check on the status of your payment, and others, visit here through IRS.gov.

The maximum "stimulus/pandemic relief" payments are as follows (subject to income phase outs):

• #1 - March 2020  - $1,200 per single taxpayer, $2400 for married filing joint; $500 per qualifying child dependent
• #2 - January 2021 - $600 per single taxpayer, $1,200 for married filing joint; $600 per qualifying child dependent
• #3 - March 2021 - $1,400 per single taxpayer, $2,800 for married filing joint; $1,400 per qualifying child;

For adult dependents you claim on your return, could also receive a $1,400 payment with the stipulation that the dependent hasn't recieved the first two relief payment

The relief payments are not taxable but you will notice your tax preparer may ask about them just in case you are eligible to receive them based on off your 2020 tax return. This will go to directly pay for any tax owed or add to any refund you may be receiving.

Note: If you are a non-filer and did not fill out the original form set by the IRS and missed the November 2020 deadline, you will have to file a tax return to claim the $1200 or $600 dollar relief/stimulus payments.

For more information and frequently asked question on the federal relief payments, please refer here to the irs.gov website

Unemployment compensation exemption for households making less than $150,000 for 2020: The first $10,200 of your unemployment compensation has been exempt from federal taxes. Calfifornia does not tax unemployment but some state do so please check out state of residence to be sure they are complying with this exemption.

If you have already filed before the unemployment compensation exemption, don't worry. the IRS has announced that they will be fixing it on their end so you should not have to file an amendment to benefit in this new, mid-season tax change.

We will update more about the benefits you may be entitled to that was written into law via the 1.9 trillion dollar "American Rescue Plan Act of 2021

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