TaxConnections

 
 

Access Leading Tax Experts And Technology
In Our Global Digital Marketplace

Please enter your input in search

Tag Archive for Economic Impact Payment

Many College Students May Still Qualify For An Economic Impact Payment

Many College Students May Still Qualify For An Economic Impact Payment

The Internal Revenue Service today urged any eligible self-supporting college student who doesn’t need to file a tax return to register by Nov. 21 so they can receive an Economic Impact Payment before the end of the year.

In advance of the National EIP Registration Day on Nov. 10 and highlighted in “A Closer Look,” the IRS is reminding people who don’t normally file a tax return they may be able to register for an Economic Impact Payment with a quick visit to the Non-Filers tool on IRS.gov. In particular, the IRS wants to remind self-supporting students with little or no income that they may be eligible for payments of $1,200 or more.

“The IRS is working hard with our partners across the country to raise awareness about the upcoming deadline to register for a payment,” said IRS Commissioner Chuck Rettig. “College students in particular should be careful not to overlook these payments if they’re supporting themselves and can’t be claimed as a dependent on someone’s tax returns. A few minutes of research could really help students.”

Read more

IRS Releases State-By-State Breakdown Of Nearly 9 Million Non-Filers Who Will Be Mailed Letters About Economic Impact Payments

IRS Releases State-By-State Breakdown Of Nearly 9 Million Non-Filers Who Will Be Mailed Letters About Economic Impact Payments

The Internal Revenue Service today released a state-by-state breakdown of the roughly nine million people receiving a special mailing this month encouraging them to see if they’re eligible to claim an Economic Impact Payment.

The IRS will mail the letters to people who typically aren’t required to file federal income tax returns but may qualify for an Economic Impact Payment. The letter urges recipients to visit the special Non-Filers: Enter Payment Info Here tool on IRS.gov before the October 15 deadline to register for an Economic Impact Payment.

Read more

Need Help With Economic Impact Payment Issues? How TAS Can Assist Those That Qualify

Need Help With Economic Impact Payment Issues? How TAS Can Assist Those That Qualify

In our previous blog, we highlighted the IRS’s procedures to correct missing Economic Impact Payments (EIPs) and how TAS can assist some taxpayers. The table below sets forth the scenarios the IRS will currently resolve, what some individuals need to do before an EIP is issued, the scenarios where individuals will need to claim the correct payment on their 2020 tax return, the types of cases with which TAS can assist, and how taxpayers can get help.

The table identifies ten EIP scenarios. The IRS has corrected or will soon correct the EIP underpayments for the first three of these scenarios. For example, in the first scenario, an individual who used the Non-Filer Tool prior to May 17 and claimed at least one qualifying child may not have received the qualifying child portion of the EIP because of a programming error. The IRS has started issuing additional payments to these individuals, and we anticipate all additional payments will be received by the end of August. If for some reason the IRS’s current programing correction does not fix a specific individual’s situation in this scenario, TAS will be able to assist the affected individual.
Read more

Recovery Rebate Fix Needed By Congress To Not Encourage MFS Filing Status

Annette Nellen- Economic Impact Payment

The CARES Act enacted March 27, 2020 included the 2020 recovery rebate for individuals that provided over 160 million adults with $1,200 to help them with financial challenges during the pandemic (see GAO data). The IRS refers to this payment as the Economic Impact Payment (EIP) and as of(8/1/20) has provided 70 FAQs to help explain it! The provision added Section 6428 to the Internal Revenue Code.

I was surprised by FAQ 26 and its answer because I would think that if for a married couple one spouse has an SSN and the other has an ITIN which disqualifies that spouse for an EIP, the spouse with the SSN would still have been given $1,200. But that will only happen if they file as Married Filing Separately rather than as Married Filing Jointly.

Q26. I filed a joint return with my spouse. Will we receive a Payment if I have a valid SSN and my spouse has an IRS Individual Taxpayer Identification Number (ITIN)?

A26. No, when spouses file jointly, both spouses must have valid SSNs to receive a Payment with one exception. If either spouse is a member of the U.S. Armed Forces at any time during the taxable year, only one spouse needs to have a valid SSN.
Read more

IRS Adds Phone Operators To Answer Economic Impact Payment Questions

IRS Adds Phone Operators To Answer Economic Impact Payment Questions

The Internal Revenue Service is starting to add 3,500 telephone representatives to answer some of the most common questions about Economic Impact Payments.IRS telephone assistance and other services will remain limited, and answers for most of the common questions related to Economic Impact Payments are available on IRS.gov. The IRS anticipates bringing back additional assistors as state and local advisories permit.

Answers for most Economic Impact Payment questions are available on the automated message for people who call the phone number provided in the letter (Notice 1444). Those who need additional assistance at the conclusion of the message will have the option of talking to a telephone representative.
Americans are encouraged to use IRS.gov.

The IRS regularly posts new and updated answers to the most frequently asked questions about Economic Impact Payments and the Get My Payment tool. Those who wish to know the status of their Economic Impact Payment are reminded to check Get My Payment regularly; the information is frequently updated as the IRS continues to process the remaining payments for delivery.
For those who are eligible for an Economic Impact Payment but aren’t required to file a tax return, the IRS reminds them the Non-Filers tool also remains available in English or Spanish for them to register for a payment.

IR-2020-97

How To Return An Incorrectly Received Stimulus Check

How to return an economic stimulus payment

By way of background, the IRS is issuing checks/direct deposits to most US taxpayers who have an SSN, if your income was less than $75,000, you would get $1,200 and another $500 per dependent.
Interestingly enough, US citizens living overseas are eligible.

You can find more details here.

As the IRS focused on relative speed, millions of stimulus payments have already been sent in error. The IRS confirmed it on May 6, along with guidelines to return it. Stimulus payments made by mistake have been issued to, among others, non-resident aliens, detainees, and deceased taxpayers. The IRS is now asking these recipients, or their family members, to return the money.

If one of these situations might apply to you, first check the following:

Your income in 2020 exceeds the income threshold – no mistake. No need to pay it back; The CARE act based taxpayers’ eligibility on their 2018 or 2019 income level.
You renounced US citizenship or surrendered a green card in 2019. The IRS issued a stimulus payment based on the information on your 2018 tax return – this payment is a mistake. You have to return it.
Read more