Dutchess County Projects $20-$50 Million Revenue Decline - 41% Comes From Sales Tax - Of Which Beacon Pays In

County Executive Marcus Molinaro released 2020 projections for a severe decrease in revenue to Dutchess County due to the COVID-19 pandemic. According to the release, it “includes a projected sales tax revenue decline of $20-50 million in 2020. Sales tax accounts for 41% of the County’s 2020 budget,” County Executive Molinaro said during his June 10, 2020 online Town Hall. The City of Beacon and other municipalities like Poughkeepsie pay into Dutchess County’s sales tax collection. Beacon does not keep the sales tax generated here, and is instead paid out a distribution of a fixed, negotiated amount from the cumulative sales tax collected across municipalities each year. A Little Beacon Blog conducted research into this, and reported on it here.

According to Molinaro’s statement, 3 of the sales tax payments Dutchess County has received from New York State in 2020, reflecting sales tax revenues since March 1st, have been lower than 2019. You can read about where which municipalities Dutchess County collects sales tax from in New York State, which include Beacon, Poughkeepsie and smaller surrounding municipalities.

Molinaro went on to describe a furlough program for Dutchess County employees: “In the wake of a projected $40-80 million revenue loss, Dutchess County Government has offered its workforce a voluntary furlough program, which 66 employees across various departments have volunteered for, and implemented freezes on hiring and non-essential spending. Funding from New York State accounts for 16% of Dutchess County’s annual budget and Governor Andrew Cuomo has suggested the pandemic may result in as much as a 20% cut in state aid to local counties, resulting in a projected loss of $15-20 million to Dutchess County. County Executive Molinaro continues to advocate for state and federal aid for counties like Dutchess to avoid being forced to eliminate critical services and programs.”

Property Tax Abatement Filing Extended To July 15, 2020

According to this press release, and Dutchess Business Notification Network, Governor Andrew M. Cuomo today signed legislation (S.8122-B/ A.10241-A) authorizing local governments to extend the deadline for filing property tax abatements to July 15, 2020 in recognition of the hardships many families and businesses continue to face as a result of the COVID-19 pandemic.

What is a property tax abatement? Investopedia explains here.

Assembly Member Alicia Hyndman introduced the bill, and said: "The property tax legislation I've introduced and passed in the Assembly is important to homeowners and those alike across my community of District 29 and the State of New York.”

The Stimulus Check: How It Works And Why Your Amount May Be Lower

The Economic Impact Payment, otherwise known as a stimulus payment or check, began arriving this week, with direct deposits showing as available today, April 15, 2020, the usual annual deadline for submitting taxes (The filing deadline has since been autoextended to July 15, 2020. You don’t need to do anything to get the extension, but you can still file your 2019 taxes. This is all spelled out on the IRS website.)

There are a few ways this is working. Not everyone’s amount will be the same; some who are “high-earners” will receive less, and those who haven’t filed taxes in the last two years will have a chance to file via special website in order to receive the funds.

A Little Beacon Blog is not a tax professional, so please check with your own tax professional about any decisions you make or questions you have.

Payments Are Automatic - If You Have Filed Taxes Within 2 Years And Have Direct Deposit

If you have filed taxes for 2018 or 2019, and have set up direct deposit with the IRS, then the money will hit your account connected to that Direct Deposit.

If you did not file taxes in the last two years - and you aren’t part of groups who don’t need to file taxes (explained below) - then you’ll need to file your 2019 taxes. Learn about that here.

Payments Are Paper Check

If you do not have direct deposit already set up, a paper check is being mailed. If you moved since the last time you filed, you can change your mailing address here.

People Who Don’t File Taxes Can Apply

If you did not file a 2018 or 2019 federal income tax return because your gross income was under $12,200 ($24,400 for married couples), or had no income at all, or you weren’t required to file a 2018 or 2019 federal income tax return for other reasons, you can still apply to receive a stimulus payment (click here). But, if you receive Social Security retirement, disability (SSDI), or survivor benefits, or Railroad Retirement and Survivor Benefits, you don’t need to apply, as your payment information is already hooked up, and the payment will come.

However, if you have qualifying children under 17 who you claim as a dependent, and you are part of those special groups already receiving benefits, then you do need to apply here to get the $500 child credit.

How Much Will The Stimulus Check Be?

Now we are into the nitty-gritty. The straightforward answer is $1,200 for individuals who file single, and $2,400 for couples who file jointly. But - income limits offset this, reducing the amount you will receive if you are a “high-earner.” There is also an additional $500/child credit if you claim qualifying children under 17 years old.

You should read all about the amounts of the stimulus check here, but here are some highlights from the IRS website:

$1,200* for individuals:

• Eligible individuals with adjusted gross income of up to $75,000 for single filers

• $112,500 for head of household filers

• $150,000 for married filing jointly

$2,400* married filing jointly.

*$500 paid in addition per qualifying child under 17 years old (this does not seem to be impacted by “high-earner” status).

“High-Earners”

For filers with income above those amounts, the payment amount is reduced by $5 for each $100 above the $75,000/$112,500/$150,000 thresholds. Single filers with income exceeding $99,000, $136,500 for head of household filers and $198,000 for joint filers with no children, are not eligible and will not receive payments.

Some Groups Of People Not Eligible For Stimulus Payment

People who are themselves dependents (like children or elder adults), people who don’t have Social Security Numbers, or are nonresident aliens are not eligible. Read about that here.

Receipt Of Payment

The IRS will be sending a letter 15 days after making payment, showing how your payment was calculated. Read about that here.

Should You File Your 2019 Close To The Original April 15 Deadline (aka Soonish)?

Some accountants believe you should. For the backlog of filings, if you hire an accountant to do this for you, it is probably a good idea to get in line now. According to the IRS, who continues to process electronic tax returns: “As of April 3, the IRS received over 97.4 million tax returns and issued over $213 billion in refunds.”

Especially in light of social distancing at work, even for the IRS, the IRS is urging online filing and writes about it here.

MONEY: Should You File Your Taxes By April 15, 2020? Despite The Extension?

The deadline to file federal and New York State taxes has been extended to July 15, 2020. This includes individual returns, trusts, and corporations for both state and federal, as well as estimated tax payments for tax year 2020 that would otherwise be due on April 15, 2020. The decision for states to extend state filings is up to each state, and New York is one such state that has issued the automatic extension. This extension is automatic, meaning you do not need to file for an extension, or call the IRS to qualify, according to the IRS federal website, and New York State Department of Taxation and Finance. Excellent. One less thing to apply for.

But should you wait to file your taxes? If you have been paying your taxes throughout the year, either as an employee taxed in the W2 classification, or as a business owner who pays taxes in payroll, or has been making estimates, if you’re all caught up, should you keep pressing along and file your taxes?

Both the state and federal taxation websites say yes, file now: “The IRS urges taxpayers who are owed a refund to file as quickly as possible,” says the federal site. At the New York State level, the language is the same: “Taxpayers who are due a refund are urged to file as soon as possible.”

A local accountant agrees. A Little Beacon Blog checked in with Arthur DeDominicis, CPA for his guidance. Here is what he had to say: “We are still encouraging people to file especially if they have refunds coming. I’m sure they can use this refund money for their immediate needs. Self-employed taxpayers may not know if they are getting a refund or owe unless they actually do the return. Just another reason to get it done.”

In a slightly morbid direction, should anything happen to you, or to your spouse if filing jointly, you may want to have this task complete. If you are taken sick in a month or during the apex, this portion of your life could be done. Estate-planning is not fun to think about, but sometimes, during times of stress, preparation can bring focus and calm. That you are doing everything you can to put things into place around you; taking care of the things that you do have control over.