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Are you missing part of your COVID-19 Economic Impact Payment?

When Congress passed the CARES Act into law back in March of this year, approximately 85% of US households expected to receive a check. Most recipients should have received $1,200 per adult and $500 per dependent child, with a reduction taking place for individuals with an adjusted gross income over $75,000 and married couples filing joint over $150,000. However, some were surprised to see their check did not include the full amount. Due to these errors, the Internal Revenue Service announced they will be reopening the registration period for those who did not receive the $500 per child payments earlier this year.

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The IRS is urging certain federal benefit recipients to use the Non-Filers’ tool on their website to enter information on their qualifying children to receive the missing payment. This tool will be available from August 15 through September 30. You are eligible to provide this information if you did not file a tax return in 2018 or 2019, have qualifying children, and currently receive one of the following:

  • Social Security retirement
  • Survivor or disability benefits
  • Supplemental Security Income (SSI)
  • Railroad Retirement benefits
  • Veterans Affairs Compensation and Pension (C&P) benefits

Those who meet the criteria explained above, who correctly report the information requested on the IRS website, should expect to receive $500 per eligible child in mid-October.

If you already used the Non-Filers tool any time after May 5, 2020, no action is needed. The IRS will automatically make the appropriate payment in October.

Those with little to no income, who are not required to file a tax return, are still eligible to receive their Economic Impact Payment. People in this group should use the Non-Filers’ tool by October 15 to receive their payment this year. Those who fail to report the necessary information by the October 15 deadline will need to wait until next year to claim it as a credit on their 2020 federal income tax return.

Contact your Henry+Horne tax professional for more details. For more information and resources on COVID-19, see our coronavirus page.

Christopher Cluff