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UPDATED: Impact Payment Breakdown: How Much Will I Get, When Will I Get It and What Do I Need to Do?

UPDATED: The IRS announced that Social Security beneficiaries who are not typically required to file a tax return will not need to file a return to receive the economic impact payments. These payments will automatically be deposited into their bank accounts. This only applies to individuals receiving social security. Other individuals who typically do not file a tax return will still need to submit a return in order to receive the economic impact payment.

In a recent announcement, the IRS stated that the economic impact payments will begin being sent within the next three weeks. These payments will be distributed automatically and no action is needed by most taxpayers.

How much is the economic impact payment?
The full economic impact payment is $1,200 for individuals, $2,400 for married filing joint couples, and $500 for each qualifying child. 

Taxpayers who are above the income limits will see a lower economic impact payment. The economic impact payments are reduced by $5 for every $100 above the income limit thresholds. Individuals with an adjusted gross income above $99,000 and married filing joint couples with no children and an adjusted gross income above $198,000 are not eligible for an economic impact payment. 

Who is eligible for the economic impact payment?
Individuals with an adjusted gross income up to $75,000 and married filing joint couples with adjusted gross income up to $150,000 will receive the full payment. The economic impact payment begins to phase-out above these income thresholds and individuals with an adjusted gross income above $99,000 and married filing joint couples with no children and an adjusted gross income above $198,000 are not eligible for an economic impact payment. 

How will the IRS determine the amount of my economic impact payment?
For individuals who have already filed their 2019 tax return, the IRS will use that tax return to calculate the economic impact payment.

For individuals who have not filed their 2019 tax return yet, the IRS will use information from their 2018 tax return to calculate the economic impact payment.

How do I receive an economic impact payment if I am not required to file a return?
Individuals who are not required to file a return may still be able to receive economic impact payment. However, in order to receive an economic impact payment, the individuals must file a tax return. Individuals who are Social Security beneficiaries who are not typically required to file a tax return will not need to file a return to receive the economic impact payments. These payments will automatically be deposited into their bank accounts. This only applies to individuals receiving social security.

How will I receive the economic impact payment?
The IRS will direct deposit the economic impact payment into the same bank account reflected on the individual’s most recent return. 

The IRS does not have my bank account information, can I still receive the economic impact payment?
Yes. The IRS is currently working on implementing a web-based portal for individuals to provide their bank account information to the IRS. In the absence of the IRS having bank account information, a paper check will be issued for the economic impact payment.

How long is the economic impact payment available?
The economic impact payment is available throughout the rest of 2020. Therefore, if you have not filed a tax return for 2018 or 2019, you can still receive the economic impact payment when you file. However, the IRS encourages individuals to file their tax returns as soon as possible. 

For additional questions related to the economic impact payment or assistance filing your tax return, please contact BMD Tax Law Attorney Tracy Albanese at tlalbanese@bmdllc.com or (330) 253-9195.

“I’m Out Of Here!” Now What?

We all know that the healthcare industry is experiencing a wave of integration. This trend has been evident for many years. Fewer physicians are willing to assume the legal, financial and other business risks associated with owning their own practices. More and more physicians, including anesthesiologists, are becoming employed by large physician groups, health systems and national providers. This shift necessarily involves not only entry into new employment arrangements but also the termination of existing relationships. And those terminations are often governed by written employment agreements, state and federal healthcare laws and employer benefit plans and other policies and procedures. Before pursuing their next opportunity, physicians should pause for a moment and first attend to the arrangement that they are leaving. Departing physicians need to understand their legal rights and obligations when leaving their current employment relationships in order to avoid unintended consequences and detrimental missteps along the way. Here are a few words of practical advice for physicians contemplating an exit from their current employment arrangements.

Investment Training for the Second and Third Generations

Consider this scenario. Mom and Dad started the business from the ground up. Over the decades it has expanded into a money-making machine. They are able to sell the business and it results in a multimillion-dollar payday for their labors. The excess money has allowed Mom and Dad to invest with various financial advising firms, several fund management groups, and directly with new startups and joint ventures. Their experience has made them savvy investors, with a detailed understanding of how much to invest, when, and where. They cannot justify formation of a full family office with dedicated investors to manage the funds, but Mom and Dad have set up a trust fund for the children to allow these investments to continue to grow over the years. Eventually, Mom and Dad pass. Their children enjoy the fruits of their labors, and, by the time the grandchildren are adults, Mom and Dad's savvy investments are gone.

Provider Relief Funds – Continued Confusion Regarding Reporting Requirements and Lost Revenues

In Fall 2020, HHS issued multiple rounds of guidance and FAQs regarding the reporting requirements for the Provider Relief Funds, the most recently published notice being November 2, 2020 and December 11, 2020. Specifically, the reporting portal for the use of the funds in 2020 was scheduled to open on January 15, 2021. Although there was much speculation as to whether this would occur. And, as of the date of this article, the portal was not opened.

Ohio S.B. 310 Loosens Practice Barrier for Advanced Practice Providers

S.B. 310, signed by Ohio Governor DeWine and effective from December 29, 2020 until May 1, 2021, provides flexibility regarding the regulatorily mandated supervision and collaboration agreements for physician assistants, certified nurse-midwives, clinical nurse specialists and certified nurse practitioners working in a hospital or other health care facility. Originally drafted as a bill to distribute federal COVID funding to local subdivisions, the healthcare related provisions were added to help relieve some of the stresses hospitals and other healthcare facilities are facing during the COVID-19 pandemic.

HHS Issues Opinion Regarding Illegal Attempts by Drug Manufacturers to Deny 340B Discounts under Contract Pharmacy Arrangements

The federal 340B discount drug program is a safety net for many federally qualified health centers, disproportionate share hospitals, and other covered entities. This program allows these providers to obtain discount pricing on drugs which in turn allows the providers to better serve their patient populations and provide their patients with access to vital health care services. Over the years, the 340B program has undergone intense scrutiny, particularly by drug manufacturers who are required by federal law to provide the discounted pricing.