April 16, 2020
The following information is provided courtesy of the National Association of Tax Professionals (NATP)
| The first batch of economic stimulus payments have been deposited in taxpayer accounts. For those who have not received their payment the IRS has released a set of tools to address questions about stimulus payments. The Social Security Administration recommends that for some people receiving Supplemental Security Income (SSI)—specifically those who have dependent children under the age of 17—it is to their advantage to go to this portal to ensure they also get the $500 per dependent payment. For those SSI recipients who do not have dependents, no further action is needed on their part. The IRS projects the payments for this group will go out no later than early May.
The IRS also released the Get My Payment tool, which shows where and when the economic impact payment was delivered. An additional feature on Get My Payment gives eligible individuals an opportunity to provide their bank account information so they can receive their payment more quickly rather than waiting for a paper check. This feature will be unavailable if the economic impact payment has already been scheduled for delivery. According to an IRS stakeholder liaison, as of mid-day April 15, more than 6.2 million taxpayers successfully received their payment status using the tool, and almost 1.1 million taxpayers successfully provided banking information, ensuring a direct deposit will be quickly sent. In situations where payment status is not available, the tool will respond with “Status Not Available”. You may receive this message for one of the following reasons:
In addition, an IRS liaison noted taxpayers should only access the tool one time per day. If they access it more than once per day, they will get locked out and possibly have no way to get back in the system. The Get My Payment tool is updated once daily, usually overnight. To help you figure out how the stimulus payments are determined, we have two videos available on YouTube that discuss various taxpayer case studies relating to the economic impact payments — part 1 and part 2. |
IR-2020-61, March 30, 2020
WASHINGTON – The Treasury Department and the Internal Revenue Service today announced that distribution of economic impact payments will begin in the next three weeks and will be distributed automatically, with no action required for most people. However, some seniors and others who typically do not file returns will need to submit a simple tax return to receive the stimulus payment.
Who is eligible for the economic impact payment?
Tax filers with adjusted gross income up to $75,000 for individuals and up to $150,000 for married couples filing joint returns will receive the full payment. For filers with income above those amounts, the payment amount is reduced by $5 for each $100 above the $75,000/$150,000 thresholds. Single filers with income exceeding $99,000 and $198,000 for joint filers with no children are not eligible.
Eligible taxpayers who filed tax returns for either 2019 or 2018 will automatically receive an economic impact payment of up to $1,200 for individuals or $2,400 for married couples. Parents also receive $500 for each qualifying child.
How will the IRS know where to send my payment?
The vast majority of people do not need to take any action. The IRS will calculate and automatically send the economic impact payment to those eligible.
For people who have already filed their 2019 tax returns, the IRS will use this information to calculate the payment amount. For those who have not yet filed their return for 2019, the IRS will use information from their 2018 tax filing to calculate the payment. The economic impact payment will be deposited directly into the same banking account reflected on the return filed.
The IRS does not have my direct deposit information. What can I do?
In the coming weeks, Treasury plans to develop a web-based portal for individuals to provide their banking information to the IRS online, so that individuals can receive payments immediately as opposed to checks in the mail.
I am not typically required to file a tax return. Can I still receive my payment?
Yes. People who typically do not file a tax return will need to file a simple tax return to receive an economic impact payment. Low-income taxpayers, senior citizens, Social Security recipients, some veterans and individuals with disabilities who are otherwise not required to file a tax return will not owe tax.
How can I file the tax return needed to receive my economic impact payment?
IRS.gov/coronavirus will soon provide information instructing people in these groups on how to file a 2019 tax return with simple, but necessary, information including their filing status, number of dependents and direct deposit bank account information.
I have not filed my tax return for 2018 or 2019. Can I still receive an economic impact payment?
Yes. The IRS urges anyone with a tax filing obligation who has not yet filed a tax return for 2018 or 2019 to file as soon as they can to receive an economic impact payment. Taxpayers should include direct deposit banking information on the return.
I need to file a tax return. How long are the economic impact payments available?
For those concerned about visiting a tax professional or local community organization in person to get help with a tax return, these economic impact payments will be available throughout the rest of 2020.
Where can I get more information?
The IRS will post all key information on IRS.gov/coronavirus as soon as it becomes available.
The IRS has a reduced staff in many of its offices but remains committed to helping eligible individuals receive their payments expeditiously. Check for updated information on IRS.gov/coronavirus rather than calling IRS assistors who are helping process 2019 returns.
Please feel free to contact Tax On Wheels, LLC at 803 732-4288 if we can assist you with securing your economic stimulus payment.