Update: Economic Impact Payments

What You Need to Know
About Stimulus Payments

Relief options for individuals and businesses (i.e. all of us) affected by the COVID-19 virus and how to obtain available options remain fluid.

For example, in last week’s post we reported that to receive the economic impact payment, you must at least file a simple tax return even if you typically are not required to file a return. Shortly after our publication, the IRS updated the guidelines for receiving the stimulus payment for those who would not typically file a return.

The updated information is as follows:

People Who Aren’t Typically Required to File a Tax Return

Social Security and railroad retirement recipients who are not typically required to file a tax return need to take no action.

The IRS will use the information on Form SSA-1099 and Form RRB-1099 to generate Economic Impact Payments of $1,200 to these individuals even if they did not file tax returns in 2018 or 2019.
Recipients will receive these payments as a direct deposit or by paper check, just as you would normally receive your benefits. Social Security Disability Insurance (SSDI) recipients are also part of this group who do not need to take action.
Social Security, railroad retirees, and SSDI who have qualifying children can take an additional step to receive $500 per qualifying child.

There are other individuals such as low-income workers and certain veterans and individuals with disabilities who aren’t required to file a tax return but are still eligible for the Economic Impact Payments.

These individuals, as well as other taxpayers, can check the IRS.gov tool –Do I Need to File a Tax Return? – to see if they have a filing requirement.

The IRS will soon provide guidance for these individuals on the steps to take to get their payment as soon as possible.

As always, feel free to contact your local tax professional if you have questions about economic impact payments related to the coronavirus.

Stay safe. Stay well. Stay home.

Bayshore CPA’s, P.A. are your local Certified Public Accountants

and Tax Resolution Specialists conveniently located

in Mooresville, North Carolina