In the following post, Optima Tax Relief reviews services low-income taxpayers and non-filers can use to register for their Economic Impact Payment.
Low-income taxpayers and those experiencing homelessness might have some difficulty receiving their Economic Impact Payment if they haven’t filed their income taxes in the previous years. However, a free tool from the Internal Revenue Service allows low-income individuals who will not be filing a 2018 or 2019 tax return to register for their coronavirus relief payment easily and efficiently.
The payment tool for non-filers is designed for individuals with incomes below $12,200 and married couples with incomes below $24,400, including married couples and individuals experiencing homelessness, regardless of working status. However, eligibility is limited to those who are <i>not</i> claimed as dependents by anyone else.
Economic Impact Payments for low-income individuals are $1,200; payments for married couples are $2,400. Individuals and couples with children under the age of 17 may qualify for $500 per child in addition to the $1,200 for individuals or $2,400 for married couples.
People whose yearly earnings fall below the $12,200/individual and $24,400/couple thresholds are not required to file a tax return. However, because the IRS uses tax returns from 2018 and 2019 to determine whether an individual or couple qualifies for an Economic Impact Payment, those who haven’t filed tax returns may be overlooked. The IRS has set up the non-filer registration tool for anyone whose information isn’t on file with the IRS.
Registering for the Economic Impact Payment only requires entering a name, mailing address, a date of birth, a social security number, and the names of dependents, if any. Once the IRS has processed the information and confirmed the registrant’s eligibility, an Economic Impact Payment amount will be calculated and either mailed as a check or directly deposited into an account.
Registration is not necessary for anyone who has filed an income tax return for the 2018 tax year, including a Form 1040. Those who have not filed income tax returns for the 2018 or 2019 tax years but intend to, should proceed with filing the returns rather than registering with as a Non-Filer with the IRS.
For more information about Economic Impact Payments or any tax information relating to the coronavirus pandemic, please visit the IRS.gov coronavirus update page.