IRS Extends Tax Day Amid Coronavirus Outbreak
March 25, 2020Print
By: Juan Tirado
To help alleviate the impact of the COVID-19 outbreak on the financial stability of America’s low-wage workers, the Internal Revenue Service (IRS) has extended the filing and payment deadline for federal taxes to July 15, 2020.
Additionally, the IRS, the U.S. Treasury Department, and the U.S. Department of Labor have announced a plan to implement Coronavirus-related paid leave for workers and tax credits for small and mid-sized businesses. The plan would include up to 80 hours of paid leave and expanded paid childcare leave for workers, and employers would receive 100% reimbursement for paid leave pursuant to the Act. These measures are an effort to address the very real effects of sudden industry-wide shutdowns on low-wage workers.
The Coronavirus pandemic has created a dire financial situation for millions of Americans. According to the Aspen Institute, more than 50 million Americans live in or near financial crisis, with nearly 1 in 2 adults not able to pay for an unexpected expense of more than $400. With so many in such a precarious financial situation, the sudden reduction of wages can result in the loss of housing and access to medical care. This is exacerbated in communities of color, which already suffer from widening wage, wealth and health gaps.
As the economic situation worsens, federal and state programs such as the Earned Income Tax Credit (EITC) offer additional opportunities to help American workers get by. The EITC not only boosts income, but also can improve health outcomes by helping Americans afford medical attention during this public health crisis.
To learn more about plans and proposals to support low-wage workers during this crisis, follow TCWF on Twitter @TaxCreditsWF.