Carol McAtee's Blog

People call it a stimulus check. Government calls it a recovery rebate. The IRS calls it an economic impact payment (EIP).

Starting this past Saturday and into next week, it is expected more than 80 million people will get it! IRS working overtime! Direct deposit payments being sent out now are: 2019 tax returns filed and 2018 tax returns filed. The next round of direct deposit payments will be social security recipients who did not file in either 2018 or 2019 but who receive their social security by direct deposit.

If the IRS has your bank info, you should be good to go. If they don’t, a paper check it will be. These paper checks are not going out before the end of April, perhaps not even until first week of May. These checks may be going out to lowest income households first, specifically those under $10,000.

Remember, the EIP is a refundable credit, reducing tax liability on 2020 Forms 1040, Individual Income Tax Returns. Because 2020 isn’t over, 2020 tax returns cannot be filed. But the payment needs to be a now thing, not a later thing. Hence, 2018 and 2019 tax returns are being used by the IRS to predetermine eligibility.

We know that you know who is eligible for an Economic Impact Payment. So, we’ll brief you on who isn’t. But first, Get My Payment will ya! The IRS Get My Payment tool went live yesterday (Wednesday, April 15th, 2020).

Get My Payment                    https://sa.www4.irs.gov/irfof-wmsp/login

If you didn’t have to file a 2018 or 2019 tax return for various reasons, including minimum income requirements (see table at the very, very end); or you may be an SSI recipient or Veteran beneficiary, use this:

Non-Filer Tool

https://www.freefilefillableforms.com/#/fd/EconomicImpactPayment

As promised. Who is not getting paid? Anyone claimed as a dependent for 2018 and 2019, adults and children alike, including disabled adults and senior citizens. Nonresident aliens even if they have social security numbers. Undocumented immigrants. Anyone with an ITIN instead of SSN (unless their spouse is a member of the Armed Forces).

And here’s a list of Just Asking for A Friend.  

My friend has kids do they get a bigger stimulus check? If your friend’s children are under 17 and they claim them as dependent, that is an extra $500 per child under 17, no limit.

My friend has a dependent that turned 17 in 2019? Whether your friend filed 2019’s tax return or not, the legislation didn’t specify a date the 17th birthday would create EIP ineligibility. The child tax credit for example states December 31, in that case it would be okay to file the 2019 tax return.

What if my friend was someone’s dependent in 2018 & 2019 but won’t be in 2020? Too soon to tell, as there is no final guidance. It is being said, that overpayments will not have to be paid back. This may be wait and see until the 2020 return.

Should my friend amend their 2019 (or 2018) tax return to say they weren’t a dependent? Absolutely not, this could be fraud. Plus, an amended return is a paper return, which aren’t even being processed right now. This may be wait and see until the 2020 return.

What if my friend did not file a tax return in 2018 or 2019? We recommend your friend e-file a complete and accurate 2019 tax return right away. This will get the proverbial ball bouncing. Your friend should also e-file a complete and accurate 2018 tax return.

What if my friend needs to update their mailing address and/or direct deposit information with the IRS? Give your friend the Get My payment link or web address above.

What if my friend owes back taxes? Your friend is getting a stimulus check. The CARES Act provides for “exception from reduction or offset”. EIPs are not exempt from private debt collection.

What if my friend defaulted on their student loan? Your friend is getting a stimulus check. The CARES Act provides for federal “exception from reduction or offset”. EIPs are not exempt from private debt collection.

What If my friend owes child support? Your friend is probably not getting a stimulus check
if past due child support was reported to the Treasury.

What if my friend got the payment and didn’t qualify for it? “Except in cases of fraud or reckless neglect” you shouldn’t have to pay back any portion of the stimulus payment on your 2020 tax return if you don’t qualify based on 2020 AGI.

My friend’s bank account is overdrawn, can the bank take the stimulus payment? Tell your friend yes, banks can garnish stimulus checks for overdrafts. Some banks are pausing collections of negative balances. Some aren’t. YES: JP Morgan Chase, Wells Fargo, Bank of America, Citigroup/Citibank. NO: USAA (this is shocking!), Comerica Bank. We recommend if your friend is in an overdraft situation to reach out to the bank and ask them to delay collection.

The 2019 minimum income filing requirements are:
Single under 65 12,200
Single over 65 13,850
MFJ both under 65 24,400
MFJ one over, one under 65 25,700
MFJ both over 65 27,000
MFS doesn’t matter how old you both are 5 (Yes, $5)
HOH under 65 18,350
HOH over 65 20,000
Qualifying widow(er) under 65 24,400
Qualifying widow(er) over 65 25,700

COVID-19 Disclaimer. Laws and regulations have quickly changed and will continue to change in order to mitigate the economic damage caused by the Coronavirus Crisis. New laws and regulations are being passed quicker than the legislative process has taken in the past. Guidance, clarifications, and interpretations are constantly evolving. Deadlines and due dates are being extended and re-extended. New relief and programs are constantly rising up. This is occurring on all levels: Federal, State, and Local. Please keep all this in mind.