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Category Archives: Economic Impact Payment

HomeArchive "Economic Impact Payment"
Get ready for taxes: Here’s what’s new in 2022
January 19 2022 RgKAdmin14 Tax Tips, Child Tax Credits, Economic Impact Payment 0 comments Tags: filing taxes in 2022, 2022 taxes, economic impact payment, advance child tax credit payments

In case you missed Robert Kratz’s January 18 letter to his clients, following is what to consider when filing your taxes in 2022.

The IRS encourages taxpayers to get informed about topics related to filing their federal tax returns in 2022. These topics include special steps related to charitable contributions, economic impact payments, and advance child tax credit payments. Taxpayers can visit IRS.gov/getready for online tools, publications, and other helpful resources for the filing season.
Here are some key items for taxpayers to know before they file next year.
Changes to the charitable contribution deduction

Taxpayers who don’t itemize deductions may qualify to take a deduction of up to $600 for married taxpayers filing joint returns and up to $300 for all other filers for cash contributions made in 2021 to qualifying organizations.


Check on advance child tax credit payments

Families who received advance payments will need to compare the advance child tax credit payments that they received in 2021 with the amount of the child tax credit that they can properly claim on their 2021 tax return.

Taxpayers who received less than the amount for which they’re eligible will claim a credit for the remaining amount of child tax credit on their 2021 tax return.

Eligible families who did not get monthly advance payments in 2021 can still get a lump-sum payment by claiming the child tax credit when they file a 2021 federal income tax return next year. This includes families who don’t normally need to file a return.

*  *  *  *  * In January 2022, the IRS will send Letter 6419 with the total amount of advance child tax credit payments taxpayers received in 2021. People should keep this and any other IRS letters about advance child tax credit payments with their tax records. Individuals can also create or log in to IRS.gov online account to securely access their child tax credit payment amounts.
Economic impact payments and claiming the recovery rebate credit

Individuals who didn’t qualify for the third economic impact payment or did not receive the full amount may be eligible for the recovery rebate credit based on their 2021 tax information. They’ll need to file a 2021 tax return, even if they don’t usually file, to claim the credit.

Individuals will need the amount of their third economic impact payment and any plus-up payments received to calculate their correct 2021 recovery rebate credit amount when they file their tax return.

*  *  *  *  * In early 2022, the IRS will send Letter 6475 that contains the total amount of the third economic impact payment and any plus-up payments received. People should keep this and any other IRS letters about their stimulus payments with other tax records. Individuals can also create or log in to IRS.gov online account to securely access their economic impact payment amounts.
More information:

Reconciling Your Advance Child Tax Credit Payments on Your 2021 Tax Return 

This blog provides summary information regarding the subject matter at the time of publishing. Please call our office at 610-296-2500 with any questions on how this information may impact your situation. This material may not be published, rewritten, or redistributed without permission, except as noted here. All rights reserved.

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Questions about Economic Impact Payments
June 17 2020 RgKAdmin14 Economic Impact Payment 0 comments

Questions about Economic Impact Payments

The IRS is issuing Economic Impact Payments. These payments are being issued automatically for most individuals. However, some people who don’t usually file a tax return will need to submit basic information to the IRS to receive their payment.

Questions? The IRS is regularly updating the Economic Impact Payment and the Get My Payment tool frequently asked questions pages on IRS.gov as more information becomes available. Here are answers to some of the most common questions.

How are payments calculated and where will they be sent?
If taxpayers have already filed their 2019 tax return and requested direct deposit of their refund, the IRS will use this information to calculate and send their payment. Those who didn’t provide 2019 direct deposit information or owed tax, can use the Get My Payment tool to provide account information or a payment will be mailed. For those who haven’t filed their 2019 return, the IRS will use their 2018 tax return to calculate the payment.

Payments will also be automatic for those who receive Social Security, railroad retirement or Social Security Disability Insurance (SSDI and SSI) and veteran’s benefits who don’t normally file a tax return.

However, to add the $500 per eligible child amount to these payments, the IRS needs the dependent information before the payments are issued. Otherwise, their payment at this time will be $1,200 and, by law, the additional $500 per eligible child amount would be paid in association with a return filing for tax year 2020.

What if the IRS doesn’t have the taxpayer’s direct deposit information?
If the IRS has not processed the taxpayer’s payment, the taxpayer  may be able to use the Get My Payment tool to provide their banking information to the agency so their payments can be directly deposited. If no banking information is provided, IRS will mail a check to the taxpayer’s address on record. The direct debit account information used to make payments to the IRS cannot be used as the account information for the direct deposit of your payment.

Can taxpayers who aren’t required to file a tax return receive a payment?
Yes. People who don’t normally file can use Non-File

rs: Enter Payment Info tool to give IRS  basic information to get their Economic Impact Payments. This includes low-income or no income taxpayers.

Can taxpayers who haven’t filed a tax return for 2018 or 2019 still receive a payment?
Yes. Anyone who is required to file a tax return and has not filed a tax return for 2018 or 2019 should file their 2019 return do so as soon as possible to receive a payment. They should include direct deposit banking information on their return.

I received an additional $500 in 2020 for my qualifying child. However, he just turned 17. Will I have to pay back the $500 next year when I file my 2020 tax return?
No, there is no provision in the law requiring repayment of an Economic Impact Payment. When you file next year, you can claim additional credits on your 2020 tax return if you are able to eligible for them, for example if your child is born in 2020. But you will not be required to repay any Payment when filing your 2020 tax return even if your qualifying child turns 17 in 2020 or your adjusted gross income increases in 2020 above the thresholds listed above.

As always, should you have any questions or concerns regarding your tax situation please feel free to call.

This blog provides summary information regarding the subject matter at time of publishing. Please call with any questions on how this information may impact your situation. This material may not be published, re-written or redistributed without permission, except as noted here. This blog includes, or may include, links to third party internet web sites controlled and maintained by others. When accessing these links the user leaves this blog. These links are included solely for the convenience of users and their presence does not constitute any endorsement of the Websites linked or referred to nor does ROBERT J KRATZ & CO have any control over, or responsibility for, the content of any such Websites. All rights reserved.
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Get Your Money: Ensure You Receive a Stimulus Payment
June 17 2020 RgKAdmin14 Economic Incentive Payment, Economic Impact Payment, Others 0 comments

The IRS has two websites to help with stimulus payments: One for non-tax filers to register to receive their economic impact payment and a new “Get My Payment” tool.

Background

As a response to the COVID-19 pandemic, the government is sending $1,200 to single taxpayers with income less than $75,000 ($98,000 with phaseouts). $2,400 is being sent to married taxpayers with income less than $150,000 ($198,000 with phaseouts). An additional $500 is being sent for each child under the age of 17.

The Problem

The payments are being made based on 2019 or 2018 tax returns. If you do not need to file a tax return for either of these years, you run the risk of not receiving this payment.

The Solution

The IRS launched a way to register to receive your payment and to determine the status of your payment. Here are the websites:

  • Non-filers: If you are not required to file a 2019 and/or a 2018 tax return, visit https://www.freefilefillableforms.com/#/fd/EconomicImpactPayment.
  • Payment status and direct deposit registration: There is also an IRS app called “Get Your Payment” to register to receive your payment via direct deposit. Visit https://www.irs.gov/coronavirus/get-my-payment. Also use this tool to review the status of your payment.

Who should use the app for non-filers

If you fall into one of the following cases, you need to review whether it makes sense to use the app mentioned above for non-filers:

  • Not required to file. If you are not required to file a tax return in either 2018 or 2019 but otherwise qualify to receive a stimulus payment, using this tool or other tax filings is the only way to receive the payment.
  • College students. If you are not a dependent on someone else’s tax return, you need to look into using this tool. If you are a dependent, it may also be worth a conversation to see if you can or should change your filing status in 2019 in order to receive this payment.
  • Seniors. Seniors that do not file tax returns in 2018 or 2019 will eventually receive the payment based upon their Form 1099-SA or railroad retirement information. The non-filer site asks you not to register, but you may receive the payment sooner AND protect your identity from would-be thieves by filing a tax return.

Who should NOT use the app for non-filers

DO NOT use the app for non-filers if you will be filing a 2019 return. If you are required to file a return, using this tool will not speed up your stimulus payment and will likely slow down processing of your tax return and receiving any refund.

As always, should you have any questions or concerns regarding your tax situation please feel free to call.

This blog provides summary information regarding the subject matter at time of publishing. Please call with any questions on how this information may impact your situation. This material may not be published, re-written or redistributed without permission, except as noted here. This blog includes, or may include, links to third party internet web sites controlled and maintained by others. When accessing these links the user leaves this blog. These links are included solely for the convenience of users and their presence does not constitute any endorsement of the Websites linked or referred to nor does ROBERT J KRATZ & CO have any control over, or responsibility for, the content of any such Websites. All rights reserved.
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Treasury, IRS unveil online application to help with Economic Impact Payments;Get My Payment allows people to provide direct deposit information and gives payment date
June 17 2020 RgKAdmin14 Economic Impact Payment 0 comments

WASHINGTON – Working with the Treasury Department, the Internal Revenue Service today unveiled the new Get My Payment with features to let taxpayers check on their Economic Impact Payment date and update direct deposit information.

With an initial round of more than 80 million Economic Impact Payments starting to hit bank accounts over the weekend and throughout this week, this new tool will help address key common questions. Get My Payment will show the projected date when a deposit has been scheduled, similar to the “Where’s My Refund tool” many taxpayers are already familiar with.

Get My Payment also allows people a chance to provide their bank information. People who did not use direct deposit on their last tax return will be able to input information to receive the payment by direct deposit into their bank account, expediting receipt.

“Get My Payment will offer people with a quick and easy way to find the status of their payment and, where possible, provide their bank account information if we don’t already have it,” said IRS Commissioner Chuck Rettig. “Our IRS employees have been working non-stop on the Economic Impact Payments to help taxpayers in need. In addition to successfully generating payments to more than 80 million people, IRS teams throughout the country proudly worked long days and weekends to quickly deliver Get My Payment ahead of schedule.”

Get My Payment is updated once daily, usually overnight. The IRS urges taxpayers to only use Get My Payment once a day given the large number of people receiving Economic Impact Payments.

How to use Get My Payment
Available only on IRS.gov, the online application is safe and secure to use. Taxpayers only need a few pieces of information to quickly obtain the status of their payment and, where needed, provide their bank account information. Having a copy of their most recent tax return can help speed the process.

  • For taxpayers to track the status of their payment, this feature will show taxpayers the payment amount, scheduled delivery date by direct deposit or paper check and if a payment hasn’t been scheduled. They will need to enter basic information including:
    • Social Security number
    • Date of birth, and
    • Mailing address used on their tax return.
  • Taxpayers needing to add their bank account informationto speed receipt of their payment will also need to provide the following additional information:
  • Their Adjusted Gross Income from their most recent tax return submitted, either 2019 or 2018
  • The refund or amount owed from their latest filed tax return
  • Bank account type, account, and routing numbers

Get My Payment cannot update bank account information after an Economic Impact Payment has been scheduled for delivery. To help protect against potential fraud, the tool also does not allow people to change bank account information already on file with the IRS.

A Spanish version of Get My Payment is expected in a few weeks.

Don’t normally file a tax return? Additional IRS tool helps non-filers
In addition to Get My Payment, Treasury and IRS have a second a new web tool allowing quick registration for Economic Impact Payments for those who don’t normally file a tax return.

The Non-filers: Enter Payment Info tool, developed in partnership between the IRS and the Free File Alliance, provides a free and easy option designed for people who don’t have a return filing obligation, including those with too little income to file. The new web tool is available only on IRS.gov, and users should look for Non-filers: Enter Payment Info Here to take them directly to the tool.

Non-filers: Enter Payment Info is designed for people who did not file a tax return for 2018 or 2019 and who don’t receive Social Security retirement, disability (SSDI), or survivor benefits and Railroad Retirement benefits. Additional information is available at https://www.irs.gov/coronavirus/non-filers-enter-payment-info-here.

No action needed by most taxpayers
Eligible taxpayers who filed tax returns for 2019 or 2018 will receive the payments automatically. Automatic payments will also go in the near future to those receiving Social Security retirement, or disability (SSDI), or survivor benefits and Railroad Retirement benefits.

General information about the Economic Impact Payments is available on a special section of IRS.gov: https://www.irs.gov/coronavirus/economic-impact-payment-information-center.

Watch out for scams related to Economic Impact Payments
The IRS urges taxpayers to be on the lookout for scams related to the Economic Impact Payments. To use the new app or get information, taxpayers should visit IRS.gov. People should watch out for scams using email, phone calls or texts related to the payments. Be careful and cautious: The IRS will not send unsolicited electronic communications asking people to open attachments, visit a website or share personal or financial information. Remember, go directly and solely to IRS.gov for official information.

More information
The IRS will post frequently asked questions on IRS.gov/coronavirus and will provide updates as soon as they are available.

 

As always, should you have any questions or concerns regarding your tax situation please feel free to call.

This blog provides summary information regarding the subject matter at time of publishing. Please call with any questions on how this information may impact your situation. This material may not be published, re-written or redistributed without permission, except as noted here. This blog includes, or may include, links to third party internet web sites controlled and maintained by others. When accessing these links the user leaves this blog. These links are included solely for the convenience of users and their presence does not constitute any endorsement of the Websites linked or referred to nor does ROBERT J KRATZ & CO have any control over, or responsibility for, the content of any such Websites. All rights reserved.
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What people really want to know about Economic Impact Payments
June 17 2020 RgKAdmin14 Economic Incentive Payment, Economic Impact Payment 0 comments

IRS.gov has answers to many questions people may have about their Economic Impact Payment. Here are answers to some of the top questions people are asking about these payments.

Is this payment considered taxable income?

No, the payment is not income and taxpayers will not owe tax on it. The payment will not reduce a taxpayer’s refund or increase the amount they owe when they file their 2020 tax return next year. A payment also will not affect income for purposes of determining eligibility for federal government assistance or benefit programs.

Can people who receive a Form SSA-1099 or RRB-1099 use Get My Payment to check their payment status?

Yes, they will be able to use Get My Payment to check the status of their payment after verifying their identity by answering the required security questions.

If someone’s bank account information has changed since they filed their last tax return, can they update it using Get My Payment?

To help protect against potential fraud, the tool also does not allow people to change direct deposit bank account information already on file with the IRS.

If the IRS issues a direct deposit based on the account information that the taxpayer provided on their tax return and the bank information is now invalid or the account has been closed, the bank will reject the deposit. The agency will then mail payment as soon as possible to the address they have on file. Get My Payment will be updated to reflect the date a payment will be mailed. It will take up to 14 days to receive the payment, standard mailing time.

Where can people get more information?

Taxpayers who are required to file a tax return, can go to IRS Free File to file electronically. If they aren’t required to file, they should go to the Non-Filers: Enter Payment Info Here tool and submit their information to receive an Economic Impact Payment.

For the complete lists of FAQs, visit the Economic Impact Payment and the Get My Payment tool pages on IRS.gov. The IRS updates these FAQs regularly.

This blog provides summary information regarding the subject matter at time of publishing. Please call with any questions on how this information may impact your situation. This material may not be published, re-written or redistributed without permission, except as noted here. This blog includes, or may include, links to third party internet web sites controlled and maintained by others. When accessing these links the user leaves this blog. These links are included solely for the convenience of users and their presence does not constitute any endorsement of the Websites linked or referred to nor does ROBERT J KRATZ & CO have any control over, or responsibility for, the content of any such Websites. All rights reserved.
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Taxpayers with a filing requirement must file a tax return to get an Economic Impact Payment
June 17 2020 RgKAdmin14 Economic Impact Payment 0 comments

While most eligible taxpayers don’t need to take any action to receive an Economic Impact Payment, some people will. This includes those who are required to file and haven’t filed a tax return for either 2018 or 2019.

Here are some facts for eligible taxpayers who need to – and haven’t – filed a tax return for 2018 or 2019.

  • Eligible taxpayers with a filing requirement who haven’t filed a tax return for 2018 or 2019 must file for 2019 to get an Economic Impact Payment.
  • Taxpayers should file electronically and include direct deposit information to get their Economic Impact Payments faster.
  • The $1,200 payments will automatically be sent to those who receive Social Security, railroad retirement or Social Security Disability Insurance (SSDI and SSI) and veteran’s benefits but, don’t normally file a tax return.  However, to add the $500 per eligible child amount to these payments, the IRS needs the dependent information before the payments are issued. Otherwise, their payment at this time will be $1,200 and, by law, the additional $500 per eligible child amount would be paid in association with a return filing for tax year 2020.
  • Other people who don’t normally file – including those with low income or no income – should use the Non-Filers: Enter Payment Info tool to give the IRS basic information so they can their payment as soon as possible.

Questions? The IRS is regularly updating the Economic Impact Payment and the Get My Payment tool frequently asked questions pages on IRS.gov as more information becomes available.

Taxpayers concerned about visiting a tax professional or community organization for help with their taxes should remember the payments will be available throughout the rest of 2020.

The IRS encourages taxpayers to share this information with family and friends. Some people who normally don’t file a tax return may not realize they’re eligible for an Economic Impact Payment.

As always, should you have any questions or concerns regarding your tax situation please feel free to call.

This blog provides summary information regarding the subject matter at time of publishing. Please call with any questions on how this information may impact your situation. This material may not be published, re-written or redistributed without permission, except as noted here. This blog includes, or may include, links to third party internet web sites controlled and maintained by others. When accessing these links the user leaves this blog. These links are included solely for the convenience of users and their presence does not constitute any endorsement of the Websites linked or referred to nor does ROBERT J KRATZ & CO have any control over, or responsibility for, the content of any such Websites. All rights reserved.
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Tools to help people get their Economic Impact Payment
June 10 2020 RgKAdmin14 Economic Impact Payment 0 comments

The IRS has two tools to help millions of taxpayers with their Economic Impact Payment. The payments are $1,200 per eligible person and up to $500 for each qualifying child.

The first tool, Non-filers: Enter Payment Info Here is available – in English and Spanish – for certain taxpayers who don’t normally need to file a return. This free tool allows them to enter basic information so the IRS can issue their payment. The second tool, Get My Payment, allows people to check the status of their payment and provide bank account information if a payment has not been scheduled for delivery.

Who needs to use Non-filers: Enter Payment Info Here?

  • Taxpayers with low- or no-income: Those who don’t normally file a tax return include those with little or no income. This includes single filers who made under $12,200 and married couples who made less than 24,400 in 2019.
  • Taxpayers who receive federal benefits: Eligible SSI and veterans’ beneficiaries who usually don’t file a tax return don’t need to provide information to get a $1,200 payment automatically. However, VA and SSI benefit recipients who don’t normally file a tax return and have children should use the free tool by May 5. This will add the $500 per qualifying child under 17 to the automatic payments. If they miss the May 5 deadline, they will have to file a tax return next year for 2020 to receive the $500 per child.
  • Married individuals must provide additional information for their spouse to claim the full $2,400 payment if their spouse didn’t receive SSA, SSDI, RRB, SSI or VA benefits in 2019 and didn’t have to file a tax return in the last two years. They need to provide this information using the Non-Filer tool before the payment is scheduled otherwise, their payment at this time will be $1,200.

Should these groups use the Non-filers: Enter Payment Info Here tool?

  • Taxpayers who have already filed or who are required to file a 2019 tax return should not use this tool. Using this tool will NOT speed up their Economic Impact Payment and will likely slow down processing of their tax return and receiving any refund.
  • People who already received their payment, even if they did not receive the full amount, should not use this tool.
  • Those who can be claimed as a dependent on someone else’s 2019 tax return are not eligible for the Payment and should not use the tool.

How to use Non-filers: Enter Payment Info Here.
The process is simple, and it only takes a few minutes to complete and submit the request for their Economic Impact Payment. First, taxpayers should visit IRS.gov and go to Non-filers: Enter Payment Info Here. Then provide basic information. The IRS will use this information to confirm the taxpayer’s eligibility, calculate, and send them a payment.

No tax will be owed on Economic Income Payments. It will not reduce a taxpayer’s refund or increase the amount owed when on the 2020 tax return filed next year. It will not affect income for purposes of determining eligibility for federal government assistance or benefit programs.

As always, should you have any questions or concerns regarding your tax situation please feel free to call.

This blog provides summary information regarding the subject matter at time of publishing. Please call with any questions on how this information may impact your situation. This material may not be published, re-written or redistributed without permission, except as noted here. This blog includes, or may include, links to third party internet web sites controlled and maintained by others. When accessing these links the user leaves this blog. These links are included solely for the convenience of users and their presence does not constitute any endorsement of the Websites linked or referred to nor does ROBERT J KRATZ & CO have any control over, or responsibility for, the content of any such Websites. All rights reserved.
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Beware of Scams Tied to COVID-19 Economic Impact Payments
June 10 2020 RgKAdmin14 Economic Impact Payment 0 comments

The IRS is warning you to be on the lookout for a surge of calls and e-mail phishing attempts related to COVID-19.

They will come in the form of e-mails, text messages, websites and social media attempts that request money or personal information.

It can come in many forms

The IRS says that scammers may do the following when trying to contact you:

  • Emphasize the words “stimulus check” or “stimulus payment.” The official term is economic impact payment.
  • Ask you to sign over your economic impact payment check to them.
  • Ask by phone, e-mail, text or social media for verification of personal and/or banking information saying that the information is needed to receive or speed up your economic impact payment.
  • Suggest that you can get a tax refund or economic impact payment faster by working with them on your behalf. This scam could be conducted by social media or even in person.
  • Mail you a bogus check, perhaps in an odd amount, then tell you to call a number or verify information online in order to cash it.

Some live examples

Here are some audio examples of scam calls put out by the Federal Trade Commission.

  • Social Security scam call: Sample SS scam call
  • Sample COVID-19 Medicare scam call: Sample Medicare scam call

What you can do

If you receive unsolicited e-mails, text messages or any other type of attempt to gather information that appears to be from either the IRS or an organization closely linked to the IRS (such as the Electronic Federal Tax Payment System, or EFTPS), you should forward it to phishing@irs.gov.

As always, should you have any questions or concerns regarding your tax situation please feel free to call. 

This blog provides summary information regarding the subject matter at time of publishing. Please call with any questions on how this information may impact your situation. This material may not be published, re-written or redistributed without permission, except as noted here. This blog includes, or may include, links to third party internet web sites controlled and maintained by others. When accessing these links the user leaves this blog. These links are included solely for the convenience of users and their presence does not constitute any endorsement of the Websites linked or referred to nor does ROBERT J KRATZ & CO have any control over, or responsibility for, the content of any such Websites. All rights reserved.
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