Please note that this blog is based on laws effective in September 2020 and may not contain later amendments. Please contact Cray Kaiser for the most recent information.
The Internal Revenue Service (IRS) announced that it would reopen the registration period for federal beneficiaries with children who did not receive a $500 per child Economic Impact (stimulus) Payment earlier this year. Here’s what you need to know:
When to Apply
The IRS urges certain federal benefit recipients to use the IRS.gov Non-Filers tool between August 15 and September 30 to enter information on their qualifying children in order to receive the supplemental $500 payments.
Who Should Register
Those eligible to provide this information include people with qualifying children who receive Social Security retirement, survivor or disability benefits; Supplemental Security Income (SSI); Railroad Retirement benefits; and Veterans Affairs Compensation and Pension (C&P) benefits and did not file a tax return for 2018 or 2019.
The IRS anticipates the catch-up payments, equal to $500 per eligible child, will be issued by mid-October.
If You Already Used the Non-Filer Tool
For those Social Security, SSI, Department of Veterans Affairs and Railroad Retirement Board beneficiaries who have already used the Non-Filers tool to provide information on their children, and who haven’t yet received payment, no further action is needed. The IRS will automatically make a payment in October.
If You Haven’t Used the Non-Filer Tool
For those who received Social Security, SSI, RRB or VA benefits and have not used the Non-Filers tool to provide information on their children, register online by September 30 using the Non-Filers: Enter Payment Info Here tool. However, anyone who filed or plans to file either a 2018 or 2019 tax return should file the tax return and not use this tool.
Any beneficiary who misses the September 30 deadline will need to wait until next year to claim the Economic Impact Payment as a credit on their 2020 federal income tax return.
How the Payment Will be Made
Those who received their original Economic Impact Payment by direct deposit will also have any supplemental payment direct deposited to the same account. Others will receive a check. The status of the payments can be checked by using the Get My Payment tool. In addition, a notice verifying the $500-per-child supplemental payment will be sent to each recipient and should be filed with other tax records.
Those who are not required to file a tax return are still eligible to receive an Economic Impact Payment by using the Non-Filers’ tool, but they need to act by October 15 to receive their payment this year. Otherwise, they will need to wait until next year and claim it as a credit on their 2020 federal income tax return.
About the Non-Filers Tool
The Non-Filers tool is designed for people with incomes typically below $24,400 for married couples, and $12,200 for singles. This includes couples and individuals who are experiencing homelessness. People can qualify, even if they don’t work or have no earned income. But low- and moderate-income workers and working families eligible to receive special tax benefits, such as the Earned Income Tax Credit or Child Tax Credit, cannot use this tool. They will need to file a regular return.
If you have questions about the child stimulus payment or stimulus payments in general, please contact Cray Kaiser today.