Timely & Relevant News: Local and National Updates
Markets were up sharply on Tuesday and were mostly up again on Wednesday as investors look toward the future.
Local Updates
The Delaware Division of Revenue (DDR) announced on Tuesday that the deadline for taxpayers to file their 2019 Delaware personal income tax returns has been extended to July 15th. The DDR still encourages people to file as soon as possible in order to get their tax refund soon. If July 15th is not long enough, tax payers can request an extension beyond this point.
Delaware followed closely behind many other states as Governor Carney issued a State of Emergency declaration, "ordering Delawareans to stay at home whenever possible and closing all non-essential businesses in Delaware to help fight the spread of COVID-19", according to delaware.gov.
The White House and Senate Strike a Bill
Wednesday morning brought big news and an even bigger stimulus package totaling $2-Trillion dollars. That's about 10% of the US nominal GDP.
The official vote to pass this bill is said to take place Wednesday afternoon. We have yet to receive full details of all that is included in the stimulus package. However, we do know that elements include $250 billion for direct payments to individuals and families, $350 billion in small business loans, $250 billion in unemployment insurance benefits and $500 billion in loans for distressed companies.
Though not confirmed yet, a Tuesday draft of the deal gave some more information on what payments to American households could look like. Details included $1,200 for individuals, $2,400 for married couples and $500 per child. These dollar amounts would be reduced for individuals who make over $75,000 or a couple that makes more than $150,000.
IRA Contribution Deadline Extended
We have been closely watching for clarification from the IRS regarding an extension for contributing to an IRA and we finally received it. The IRS stated, "Contributions can be made to your IRA, for a particular year, at any time during the year or by the due date for filing your return for that year. Because the due date for filing Federal income tax returns has been postponed to July 15, the deadline for making contributions to your IRA for 2019 is also extended to July 15, 2020."
Similar provisions also exist for contributions to your HSA. The IRS stated, "Contributions may be made to your HSA or Archer MSA, for a particular year, at any time during the year or by the due date for filing your return for that year. Because the due date for filing Federal income tax returns is now July 15, 2020, under this relief, you may make contributions to your HSA or Archer MSA for 2019 at any time up to July 15, 2020."
If you have any specific questions, hesitations or would like to discuss your own investment strategy or financial planning needs, we welcome you to call us at 302.234.5655 or email us at contactus@covenantwealthstrategies.com to set up time to discuss further.
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