27 Apr New Web Tool for Non-Filers to Claim Economic Impact Payments
In the wake of COVID-19’s impact on individuals’ daily lives and the US economy as a whole, President Trump recently announced a relief plan for both individuals and business. The highlights of this plan included economic impact payments for every citizen: $1,200 per person, plus an additional $500 for each dependent child. The government will be utilizing the IRS’s payment structure and information from your 2019 or 2018 tax return to process and send out these payments to you.
However, there are many individuals in the country who are not required to file an annual tax return. If the government is utilizing the payment information included on your tax return, then how can non-filers claim their economic impact payments? The Treasury Department and the IRS announced a new tool that these individuals can use to claim their payments. Here’s what you need to know.
Easy-to-Use Online Tool
Non-filers will be happy to know that claiming your economic impact payment will still be quite simple and easy to do. The new online tool, launched on the 10th of this month, can be found on the IRS website, here. Or, you can visit IRS.gov and look for “Non-filers: Enter Payment Info Here” at the top of the IRS home page.
Once you are in the form, you will be asked to provide some basic information, including:
- Social Security number
- Dependent information
The IRS will use this information to confirm your eligibility and calculate your payment amount. Entering this information into the tool will not result in you owing any taxes. If you choose to enter financial account information, this will only be used so that the IRS can make a direct deposit payment to your account; otherwise, you will receive a check in the mail.
The payment info tool is safe and secure, and any information you enter on the website will be protected.
Who Needs to Use This Tool?
This new tool is designed to be used by those who did not file a return in 2019 or 2018. If you did not file in these years but received Social security retirement or disability benefits or Railroad Retirement benefits, you can still receive your economic impact payment; the IRS can use the same payment information used when you receive your benefits. Those who should be using the new tool include:
- Low-income individuals: Individual filers who made under $12,200 and married couples who made under $24,400 in 2019 are not required to file a 2019 tax return. If you’ve fallen under the income threshold for both 2019 and 2018, then you should use the new online tool to provide your information to the IRS.
- Recipients of SSI and veterans’ benefits: While the IRS is currently working on a way to automatically provide economic impact payments to these individuals, there is not currently one in place. You may choose to wait for an automatic payment process to be put into place, at which point you will receive your check; however, if you want to receive it a bit more quickly, we recommend using the online tool.
- Social Security, SSDI, and Railroad Retirement recipients with dependents: As mentioned earlier, these individuals will receive their economic impact payments automatically using their currently provided payment information. However, if you fall into this category and also have qualifying dependents, you will need to use the online tool to receive your $500 payment per dependent; otherwise, you will only receive the $1,200 payment for yourself.
When Can You Expect Your Payment?
Many people are anxiously awaiting their economic impact payments in order to assist with financial struggles brought on by the current pandemic, and you are likely wondering when you can expect your payment to arrive. The IRS intends to begin making automatic payments next week. These will first be sent to those who filed tax returns in 2019 or 2018 and who selected direct deposit for their refund. If you fall into this category, you can expect your payment very soon. Others should not be far behind, especially if you ensure the IRS has your payment information using the tool on the IRS website.
As of April 17th, the IRS will be launching another new tool on their website called Get My Payment. This will allow you to check on the status of your payment, including the exact date that your payment is scheduled to be deposited into your account, or when you check is scheduled to be mailed to you.
If you have any questions or concerns about your economic impact payment, your upcoming tax return, or how this pandemic is impacting your business, please feel free to reach out to the CPAs here at The Accounting Guys in Provo. We’re here to answer any questions you may have. Together, we can get through this.