ANOTHER EIP (stimulus check) UPDATE

          

Updated 4/27/2020
         

TALK OF A $2,000 STIMULUS CHECK

            

While there is already talk of the next stimulus payment, there is not currently another $2,000 stimulus check scheduled.  In fact, S.3565 - Small Business and Consumer Debt Collection Emergency Relief Act of 2020 was introduced on March 20, 2020, read twice by the Senate and referred to the Committee on Banking, Housing, and Urban Affairs. No additional information has been provided at this time. 

STIMULUS CHECK UPDATE

            

In general, taxpayers who already filed tax returns, either in 2018 and 2019, will automatically get their payment, and with respect to the payment only, and do not need to do anything further at this time.

 

If you haven’t filed your 2019 tax return yet, or if you filed your 2019 tax return after (approximately) March 31, 2020 the IRS will use information from your 2018 tax return to calculate your payment amount.

 

If you have not yet filed your 2019 income taxes, do NOT go on the "non-filer website" on the IRS to give them your banking information. If you do, when you e-file your tax return, it will be rejected.

    

If you file taxes every year, you are not a non-filer. You just haven't filed yet. A non-filer is somebody who does not need to file because they either have no income or their income is low enough that it doesn't rise to the level of needing to file a tax return.

According to the IRS figures, nearly 88 million individuals have received stimulus payments worth almost $158 billion in the program’s first three weeks (as of April 17). That number is more than half of the 150 million payments expected to be distributed.

 

TAXPAYERS NOT NORMALLY REQUIRED TO FILE A TAX RETURN

       

Social Security Recipients: Taxpayers who receive Social Security retirement, Railroad Retirement benefits or Social Security Disability Insurance (SSDI), who are not typically required to file tax returns, will not need to file a return to receive a payment. Recipients will receive these payments as a direct deposit or by paper check, just as they would normally receive their benefits.

Income Under $12,200 (or $24,000 if Married): If you’re a U.S. citizen with gross income less than $12,200 ($24,00 for married couples) and aren't generally required to file a tax return with the IRS, you can us the Non-Filers: Enter Your Payment Info Here tool to provide the IRS with your information needed to determine your eligibility and payment amount. Do this as quickly as possible, so the IRS has the information it needs to issue your payment.

         

NOTE: People in these groups, who have qualifying children under age 17, can use this tool to claim the $500 payment per qualifying child. Otherwise, you may not be able to claim qualifying children until or unless you file for tax year 2020. 

**According to the IRS, this registration expired on April 22, 2020.  Unless the deadline is extended, those who missed the cutoff will get their stimulus payments of $1,200 but will now have to wait until next year to collect the extra $500 per child when they file their 2020 tax return.

4/27 UPDATE:  If you receive SSI or Veterans Affairs benefits, have any dependent children under 17 and didn’t file a tax return for 2018 or 2019, you have until May 5 to use the non-filer tool on the IRS website to receive the $500 payment per dependent child under 17. If you miss the deadline to register dependent children, you will still get your $1,200 payment, but you will have to wait until next year to get the additional $500 when you file a 2020 tax return.

GARNISHMENTS & DEBT COLLECTIONS

       

The EIP (stimulus checks) are defined as tax credits and not federal benefits, making them subject to "garnishment”.  While the Government has agreed not to seize funds for tax debt or other federally-owed obligations, the CARES Act does not explicitly designate these emergency stimulus payments as exempt from garnishment. As a result, there is a risk that stimulus payments may be garnished by creditors or debt collectors.

       

  • Child support obligations. Your payment WILL be sent to the agency in control of those accounts instead of refunded directly to you.

    

  • Delinquent loans, overdraft and past-due fees. Even if the individual thinks their account with that bank is closed, if the payments post there, the bank is able use them to cover old debts.

            

  • Private debt collection. A debt collector that wins a judgment in court can seize anything of value held by the debtor.

 

For more information on regular tax refund offsets, see the Refund Offset page.

YOU ARE NOT ELIGIBLE FOR A PAYMENT IF YOU:

       

  • Can be claimed as a dependent on someone else’s return;

  • Do not have a valid Social Security number (a taxpayer with an individual taxpayer identification number (ITIN) does not qualify);

           

  • Are a nonresident alien;

  • Filed Form 1040-NR or Form 1040NR-EZ, Form 1040-PR or Form 1040-SS for 2019; or

  • Have adjusted gross income (AGI) above the amount based on your filing status and the number of your qualifying children. 

WHEN WILL I GET MY PAYMENT?

       

The IRS began issuing payments to taxpayers who already had existing direct deposit information on file.

      

Payments will continue to be issued over the coming weeks and months through December 31, 2020. U.S. Treasury Secretary Steven Mnuchin has instructed the Internal Revenue Service to get payments out as fast as possible to help offset the pain of losing jobs and shutting down businesses, but numerous glitches — affecting filers who used tax preparers, parents of dependent children and people with 2019 tax returns still to be processed — are delaying payments and causing confusion.

4/27 UPDATE: If you’re still waiting on your stimulus money, here is an estimate of when more payments will be delivered.

  • If you have successfully entered your bank information “any day until noon on Tuesday, your payment date will be available beginning the following Saturday.”

    • If you miss the Tuesday deadline, you have to wait another week to get a payment date.

    • Or, if your payment has already been processed, you’ll get a check that could take up to 14 days to receive.

  • Social Security, survivor and disability non-filers will see economic impact payments in their bank accounts by April 29th

  • SSI non-filers should begin seeing payments in early May

  • Veterans benefit recipients should also begin receiving their stimulus payments by early May

 

Use Get My Payment

       

  • To check your payment status

  • To confirm your payment type: direct deposit or check

  • To update direct deposit bank account information in some situations

             

You cannot use the Get My Payment application to update the direct deposit bank account information after an Economic Impact Payment has been scheduled for delivery.

    

However, if you who did not use direct deposit on your last tax return to receive a refund, or when your direct deposit information was inaccurate and resulted in a refund check, you will be able to provide that information and speed up payment with a deposit into your bank account.

If Get My Payment says "Need More Information"

You are eligible for an Economic Impact Payment (EIP), but we do not have your direct deposit information to send your payment electronically. You should provide your bank information once you have properly verified your identity. Make sure the routing number, account number, and account type are correct. You can find this information on one of your checks, through your online banking applications or by contacting your financial institution directly. Direct deposit is the fastest way to get your EIP.

If you choose not to provide your bank information or prefer to receive your EIP by mail, your payment will be sent to the address we have on file for you.

** CURRENT STIMULUS PAYMENT ISSUES **

       

Issues using 'Get My Payment'

              

‘Payment Status Not Available’

        

There are a number of reasons the tool can’t check the status of a stimulus payment:

     

  • You aren’t eligible for a payment.

  • You have not filed a 2018 or 2019 federal tax return.

  • You filed your 2019 return, but it hasn’t been fully processed.

  • The application doesn't yet have your data; the IRS is working on adding more data to allow more people to use it.

  • You used the non-filers tool, but the information you entered is still being processed.

  • There’s a problem verifying your identity when answering the security questions.

  • If your payment is based on your status as a Social Security, disability, Veterans Affairs or Railroad Retirement beneficiary and your information has not been loaded onto the system yet . In this case, the IRS will use your SSA or RRB Form 1099 payment information, your payment information isn’t available on the “Get My Payment” tool.

     

Some say they are getting that message even though they do not fall into any of these categories. Information on the site is updated only once a day, so checking more than once in a 24-hour period won’t yield a different result. The IRS says people who qualify for a payment will receive it by mail if they do not get it from direct deposit.

If you receive “Payment Status Not Available”, you will not be able to provide direct deposit information at this time.

HELPFUL HINTS: Get My Payment Status is Unavailable

       

  • If you had a balance due on your last filed tax return: use the amount of actual tax, not including any penalties calculated on the return.

  • If your tax return had a zero balance due or zero refund, try entering the information as 'refund' and enter zero in the box. 

  • If your refund was applied forward enter zero in the refund box.

The IRS website locks you out if you try too many times

                

To thwart fraudsters, the IRS tool locks out people who try multiple times a day. This has become a problem for people trying to give the IRS direct deposit information.

People who owed $0 in taxes can’t check their payment status

      

Some have complained about a glitch in the tool that won’t allow them to move forward because they neither owed any money to the IRS nor received a refund for 2018 or 2019. Typing in zero didn’t work. The IRS is aware of the problem and are checking into it.

Receiving the wrong payment amount or no money for dependent children

              

Many people have indicated they received an incorrect payment amount. Five people contacted The Post saying they didn’t receive any money for their children or they received only one child payment when they have three kids. Others said the amount for them personally was wrong.

           

People who receive what they believe is an incorrect amount will have an opportunity to let the IRS know. The agency is required to mail a letter to your last known address 15 days after sending your payment. The letter is supposed to explain how the payment was made and provide instructions on how to report any issues. (see below)

If you used H&R Block, Turbo Tax, etc.

              

Several million people who filed their taxes via H&R Block, TurboTax and other services were unable to get their payments because the IRS did not have their direct deposit information on file, according to the Treasury, companies and experts.

         

IRS and Treasury officials said they are aware of these issues and are working to fix them.

If you used received an advance on your tax refund 

                  

If you received an advance on their tax refund from these companies or had the fee for tax preparation taken out of their tax refund. The reason is that tax preparation companies received these people’s tax refunds first, deducted their fees and then distributed the remaining refunds to the customers. Because of that, the IRS had a “temporary bank account” on file that the tax preparer created for the 2019 tax season which will not be used for the EIP.

        

The IRS is aware of the problem and urges people to input their bank information on the Get My Payment portal.

If you received your tax refund through prepaid debit cards 

                  

People who file their taxes through online platforms like TurboTax have the option to get their refunds sent to them on prepaid debit cards through the Netspend, or in H&R Block's case, the company's Emerald Card.

            

While some of those people will still get a stimulus check in the mail, others will find their stimulus payments were put directly on their prepaid debit cards — even if the person is longer using the card.

PAYMENT LETTERS WITH INSTRUCTIONS TO FOLLOW

       

For security reasons, the IRS plans to mail a letter about the economic impact payment to each taxpayer’s last known address within 15 days after the payment is paid. The letter will provide information on how the payment was made and how to report any failure to receive the payment. If you are unsure if you are receiving a legitimate letter, the IRS urges taxpayers to visit IRS.gov first to protect against scam artists.

MORE INFORMATION

       

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Strive Tax & Accounting, LLC reminds readers that the information which is summarized herein is for general and informational purposes only, it is not legal advice. It does not take into account your specific circumstances and should not be acted on without full understanding of your current situation and future goals and objectives by a fully qualified financial advisor. In doing so you risk making commitment to a product and/or strategy that may not be suitable to your needs.

   

While we have tried to ensure the accuracy and completeness of the contents of this website, Strive Tax & Accounting, LLC cannot offer any undertaking or guarantee, either expressly or implicitly, including liability towards third parties, regarding how correct, complete or up to date the contents of this website are. We reserve the right to supplement this website at any time or to change or delete any information contained or views expressed on this website.

Please consult us or your legal professionals regarding any specific matters related to the CARES Act that may affect your firm and its portfolio companies.

       

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 Our primary goal as a trusted advisor is to be available and to provide insightful advice to enable our clients to make informed financial decisions.

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Strive Tax & Accounting, LLC

CPA's specializing in small business tax and accounting with emphasis in construction and manufacturing for corporation and passthrough entities.

PO Box 28353

Green Bay, WI 54324

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