Economic Impact Payments (Stimulus)

Where in the world do I begin? Or should I just end this by saying, “The deadline to claim your Economic Impact Payment is approaching.”

Short and simple, that is the truth. However, that is not all!

Filers and non-filers have until 3PM Eastern Standard Time on November 21, 2020 to request payment.

If you are one of those taxpayers (once like myself) that has delayed filing, maybe now is a good time to consider filing. Contrary to popular belief, tax season does not end on April 15. Taxpayers that file Form 4868 have an additional six months to submit their federal tax return. Receiving an extension does not stop or reduce interest, but it does stop penalties related to not filing a timely return. As of today, tax returns are still being sent to the IRS which allows filers a small window to request Economic Impact Payments (EIP).

For all you Non-Filers, the deadline is the same. If you have not requested your EIP, please do so before November 21, 2020. This includes individuals that receive Social Security, Railroad retirement, VA and Disability benefits, your spouse and dependents. Even if you are a receipt of any of these benefits and have received your Economic payment, you can request amounts for your spouse and dependent(s).

The IRS has provided several tools to assist you with gaining more information regarding your payment. It would be wise to check to see if you are eligible for the payment before utilizing the Get My Payment or the Non-Filer tools.

The Get My Payment tool allows taxpayers, aka filers, to check the status of funding status of the stimulus payment. When using the Get My Payment tool, make sure you have the following information handy:

Legal Name (I hope you know this, but if not…it’s the one you used when you filed)
Social Security Number (Make sure it is yours. The exception is for your spouse and dependent(s))
Address (The one you used when you filed your return.)
Birthdate (The Real One!)
Bank account info (Depending on what the tool retrieves, you may be prompted to enter your bank account information: routing and checking/savings number(s). )
Adjusted Gross Income (Depending on what the tool retrieves, once again, you may be prompt to enter your AGI. Make sure you have it nearby.)
Refund/Tax Due (Depending on…blah blah blah…Have it handy!)

The Non-Filer Tool is designed for individuals that do NOT have to file (How convenient for you’s guys!) each year. Despite the joking around, these individuals are usually retired, disabled or veterans receiving benefits that are vital to their livelihood. From my personal experience, it is this group of citizens that are being impacted the most by COVID-19, yet they lack access to the necessary resources. ***Side story*** I’m from a decently small town and now I live in the city. I often go back home to visit my family and friends. Well, when COVID-19 struck, I did not know what to do! My mom, after much convincing, got me to go back to my hometown. She felt that it was safer than being in the city and sorta felt the same. Before I go off on side, side story…I was hesitant because I wanted to remain in the city to work on my business. Hindsight, I am glad I listened to my MOM. Why? I was able to witness how many individuals, specifically the elderly and disabled, that did not receive nor know how to request their stimulus payment. Many were told that it would come automatically. And for millions, it did. But for others, it did not. The most concerning part was that these people did not use the internet or know how to utilize the IRS tools. Not to mention, the freaking IRS was closed. And just when you think you have heard it all, some folks were victims of identity theft. So imagine, if you can, as someone that uses the internet and thrives on technology and good health – not being mobile or able to connect a live person – in a world that is moving rapidly towards being on a cloud. These people don’t know jack crap about clouds or the internet. All they know is this – THEY WANT THEIR MONEY!!!! Thankfully, I was there to assist. ***

The Non-Filer tool is also for individuals that are imprisoned or incarcerated . The tricky part to this is, (read the case summary below) they only had until November 4, 2020 to submit a simplified paper tax return requesting payment. Those wishing to use this method no longer have it available, nor does it appear that the option was made available for a decent period. Nevertheless, those that did not meet the November 4 deadline to paper file can utilize the Non-Filer tool. The deadline for incarcerated persons to request payment is November 21, 2020.

If you are or have been a victim of Identify Theft, make sure you have your IP PIN close by when using the Non-Filer tool. If you get stuck, give me a call and I will be glad to assist! If you need to report Identity Theft to the IRS, see the link below. Also contact all three credit bureaus to alert them of possible identity theft. Granted, tax identity theft is slightly different from having your credit identity stolen, but its all about the same…THEFT!

If you are a caregiver or custodian of someone that has not received their economic payment, utilize the tools below to determine eligibility and/or payment status.

If you or someone you know needs assistance requesting their economic impact payment, contact the Golden One today! In most cases, I am able to provide this service for FREE! Yes, FREE! That means I do not get paid unless you want to tip me. Contact me today for a consultation. You find that the process is quick and easy!

The holidays are approaching and an extra $1,200 in pocket would be nice!

Resources:

Non-filer Tool: https://www.freefilefillableforms.com/#/fd/EconomicImpactPayment

Get My Payment: https://www.irs.gov/coronavirus/get-my-payment (Hint: Stroll down the page)

According to the IRS as of October 26, 2020 in order to be Eligible for the Economic Payment a taxpayer must be:

A U.S. citizen or U.S. resident alien, you will receive an Economic Impact Payment of $1,200 ($2,400 for a joint return) if you (and your spouse if filing a joint return) are not a dependent of another taxpayer and have a Social Security number valid for employment and your adjusted gross income (AGI) does not exceed:
$150,000 if married and filing a joint return
$112,500 if filing as head of household or
$75,000 for eligible individuals using any other filing status Your payment will be reduced by 5% of the amount by which your AGI exceeds the applicable threshold above.

You are Not Eligible for a payment if any of the following apply to you:

You may be claimed as a dependent on another taxpayer’s return (for example, a child or student who may be claimed on a parent’s return or a dependent parent who may be claimed on an adult child’s return).
You do not have a Social Security number that is valid for employment.
You are a nonresident alien. The following are also not eligible: a deceased individual or an estate or trust.

Incarcerated Persons and EIP

Pursuant to a permanent injunction entered in Scholl v. Mnuchin, No. 20-cv-05309 (N.D. Cal. Oct. 14, 2020), appeal docketed, No. 20-17077 (9th Cir.), the IRS cannot deny a payment to someone who is incarcerated if they meet the criteria established. Information can be provided to the IRS by using the Non-Filers: Enter Payment Info here online tool by November 21, 2020. Or, you may mail a 2019 simplified paper tax return following the procedures at File a Simplified Paper Tax Return by the court-ordered deadline of November 4, 2020.

If you are currently incarcerated, you may use your institution address as your home address on Form 1040, even if it is a P.O. Box. If you use your institution address, include your corrections or inmate identifying number in the section at the top to ensure the IRS can deliver the Payment to you. It is best to add it near your last name. If you already used the Non-Filers tool or filed a tax return for 2018 or 2019 (including a joint tax return with your spouse), you DO NOT need to take any further action.

Source:

IRS. https://www.irs.gov/newsroom/economic-impact-payment-information-center-topic-a-eip-eligibility#collapseCollapsible1605029380411

https://www.irs.gov/newsroom/economic-impact-payment-information-center-topic-b-requesting-my-economic-impact-payment#qb13