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Tax Tip: IRS Reopens Online Tool for Non-Filers to Receive EIPs for Children
May 23, 2021
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Answers to Five Common Questions About 2020 Stimulus Payments
May 23, 2021
The IRS recently offered guidance about some common issues that have arisen with 2020 Economic Impact Payments (EIPs, also called stimulus payments). If you are still waiting for your EIP, received a payment addressed to a deceased individual, or believe the amount of your EIP was incorrect, here are the key things you need to know:
I have not received an EIP. What should I do if I believe I am entitled to one?
You may need to provide the IRS with more information. Even though the vast majority of eligible Americans have received their EIPs, some payments are still being calculated and sent. If you believe you are entitled to an EIP but have not yet received one, you can use the IRS Get My Payment (if you filed a 2018 or 2019 federal return) or Non-Filers portal to check on your payment status. The tool will inform you if you need to submit more information, such as your current address or banking information.
You may have been claimed as a dependent on someone’s 2018 or 2019 tax return. If anyone claimed you as a dependent on their 2019 tax return (or 2018 return if they had not filed for 2019 at the time when most EIPs were calculated), you most likely will not receive an EIP during 2020. However, if you cannot be claimed as a dependent by anyone this year, you may qualify to receive a payment. While there is no mechanism in place for people in this situation to get their EIPs during 2020, you may be able claim your EIP as a credit on your 2020 tax return.
What should I do if I receive a payment addressed to someone who passed away?
The IRS has stated that any EIP sent to a deceased individual must be returned to the U.S. Treasury. If you are a past joint filer who received a payment for a couple (usually $2,400) but your spouse is deceased, you may either return just your spouse’s portion (usually $1,200), or return the entire payment to receive a new EIP in your name.
How to return payments received as paper checks or direct deposits:
- If you received the EIP as a paper check and have not cashed or deposited it, write “VOID” on the check before returning it.
- If you cashed or deposited the EIP check or received the payment as a direct deposit, make out a check or money order to “U.S. Treasury.”
In either case, include a note with the reason you are returning the payment and the Social Security number (SSN) of the individual who has passed away, and mail the note and check to the appropriate IRS Center. You can find the address for the IRS Center for your state by visiting the IRS Returning EIPs page and using the table under Q1.
If the payment was issued on a prepaid debit card, mail it back to the card issuer (Money Network Cardholder Services) with a note explaining the reason you are returning it.
What should I do if I believe the amount of my EIP was incorrect?
If the amount of your EIP was lower than you expected , there may be several reasons for the discrepancy. For example, you may not have filed your 2019 federal return at the time your EIP was calculated, and your income was lower in 2019 than in 2018. Or you may have a dependent child who was born or adopted in 2019 or 2020 and qualifies for the $500-per-child supplemental EIP, but the child did not appear on your most recently filed return.
In these cases, save your Notice 1444 (Your Economic Impact Payment) and report the information shown there on your 2020 tax return. If indeed you were underpaid, you may be able to claim the rest of your EIP as a tax credit.
In addition, some EIP amounts were reduced because a taxpayer owes past-due child support, in which case the taxpayer should receive a letter from the Bureau of Fiscal Service explaining the EIP reduction. Unfortunately, these payment adjustments were not always correctly calculated or applied. The IRS is currently working to resolve the issue, so taxpayers affected by the processing errors do not need to take any action.
If the amount of your EIP was higher than you expected , you do not need to take any action at this time. Simply save your Notice 1444 and report the information on your 2020 tax return. Dependents who receive EIPs should hold the money pending further instructions, since those who are claimed as dependents on someone else’s tax return are generally not eligible for EIPs.
Tax Tip: IRS Reopens Online Tool for Non-Filers to Receive EIPs for Children
May 23, 2020
The U.S. Treasury continues its efforts to ensure that all eligible Americans receive their 2020 Economic Impact Payments (EIPs, also called stimulus payments) before the end of the year. Currently, the IRS is reaching out to federal benefits recipients with qualifying children who have not yet received their $500-per-child supplemental EIPs, often because they did not file a 2018 or 2019 tax return. You may qualify for one or more of these $500 payments if all of the following apply to you:
- You receive Social Security, Supplemental Security Income (SSI), Railroad Retirement and/or Veterans Affairs (VA) benefits.
- You are not required to file a federal income tax return.
- You have dependent children under the age of 17 who live with you for more than half of the year.
The IRS urges anyone meeting these requirements to register online using the Non-Filers: Enter Payment Info Here portal (see link below) as soon as possible. To receive their $500 supplemental EIPs before the end of the year, applicants should register by the September 30, 2020 deadline. Most of these payments are expected to be issued by mid-October.
Those who do not wish to provide their information online may be able to provide the necessary information to the IRS by printing out and mailing the online registration form, or submitting a simplified 2018 or 2019 paper tax return (Form 1040 or 1040-SR). If you miss the registration deadline to receive the EIPs to which you are entitled in 2020, you may still be able to receive them by filing a 2020 federal tax return and claiming the EIPs as a refundable credit.
“IRS Non-Filers: Enter Payment Info Here” portal: https://www.irs.gov/coronavirus/non-filers-enter-payment-info-here
Upcoming Tax Deadlines
May 23, 2020
September
| Day | |
|---|---|
| 10 | Employees Who Work for Tips – If you received $20 or more in tips during August, report them to your employer. You can use Form 4070. |
| 15 | Corporations – Deposit the third installment of estimated income tax for 2020. A worksheet, Form 1120-W, is available to help you estimate your tax for the year. |
| 15 | Employers – Nonpayroll withholding. If the monthly deposit rule applies, deposit the tax for payments made in August. |
| 15 | Employers – Social security, Medicare, and withheld income tax. If the monthly deposit rule applies, deposit the tax for payments made in August. |
| 15 | Individuals – Make a payment of your 2020 estimated tax if you’re not paying your income tax for the year through withholding (or won\’t pay in enough tax that way). This is the third installment date for estimated tax in 2020. |
| 15 | Partnerships – File a 2019 calendar year return (Form 1065). This due date applies only if you timely requested an automatic 6-month extension. Otherwise, see March 16, earlier. Provide each partner with a copy of their final or amended Schedule K-1 (Form 1065) or substitute Schedule K-1 (Form 1065). |
| 15 | S Corporations – File a 2019 calendar year income tax return (Form 1120-S) and pay any tax, interest, and penalties due. This due date applies only if you timely requested an automatic 6-month extension of time to file the return. Otherwise, see March 16, earlier. Provide each shareholder with a copy of their final or amended Schedule K-1 (Form 1120-S) or substitute Schedule K-1 (Form 1120-S). |
October
| Day | |
|---|---|
| 13 | Employees Who Work for Tips – If you received $20 or more in tips during September, report them to your employer. You can use Form 4070. |
| 15 | Corporations – File a 2019 calendar year income tax return (Form 1120) and pay any tax, interest, and penalties due. This due date applies only if you timely requested an automatic 6-month extension. Otherwise, see April 15, earlier. |
| 15 | Employers – Nonpayroll withholding. If the monthly deposit rule applies, deposit the tax for payments made in September. |
| 15 | Employers – Social security, Medicare, and withheld income tax. If the monthly deposit rule applies, deposit the tax for payments made in September. |
| 15 | Individuals – If you have an automatic 6-month extension to file your income tax return for 2019, file Form 1040 or Form 1040-SR and pay any tax, interest, and penalties due. |
November
| Day | |
|---|---|
| 02 | Certain Small Employers – Certain small employers. Deposit any undeposited tax if your tax liability is $2,500 or more for 2020 but less than $2,500 for the third quarter. |
| 02 | Employers – Federal unemployment tax. Deposit the tax owed through September if more than $500. |
| 02 | Employers – Social security, Medicare, and withheld income tax. File Form 941 for the third quarter of 2020. Deposit or pay any undeposited tax under the accuracy of deposit rules. If your tax liability is less than $2,500, you can pay it in full with a timely filed return. If you deposited the tax for the quarter timely, properly, and in full, you have until November 10 to file the return. |
| 10 | Employees Who Work for Tips – If you received $20 or more in tips during October, report them to your employer. You can use Form 4070. |
| 10 | Employers – Social security, Medicare, and withheld income tax. File Form 941 for the third quarter of 2020. This due date applies only if you deposited the tax for the quarter timely, properly, and in full. |
| 16 | Employers – Nonpayroll withholding. If the monthly deposit rule applies, deposit the tax for payments made in October. |
| 16 | Employers – Social security, Medicare, and withheld income tax. If the monthly deposit rule applies, deposit the tax for payments made in October. |
December
| Day | |
|---|---|
| 10 | Employees Who Work for Tips – If you received $20 or more in tips during November, report them to your employer. You can use Form 4070. |
| 15 | Corporations – Deposit the fourth installment of estimated income tax for 2020. A worksheet, Form 1120-W, is available to help you estimate your tax for the year. |
| 15 | Employers – Nonpayroll withholding. If the monthly deposit rule applies, deposit the tax for payments made in November. |
| 15 | Employers – Social security, Medicare, and withheld income tax. If the monthly deposit rule applies, deposit the tax for payments made in November. |