Questions have arisen since the issue of the first Economic Impact Payments (EIP) in April, 2020. But information is updated frequently. Here are some facts which may clear things up a bit.
If taxpayer is a US citizen (or resident alien), they may be eligible for $1,200 ($2,400 joint), plus $500 for each qualifying child AND they may be eligible for $600 ($1,200 joint), plus $600 for each qualifying child. They (and the spouse if a joint return) must have a Social Security Number which is valid for employment. The adjusted gross income must be below the limits for their filing status.
Taxpayers do not qualify if they were a dependent on another’s 2019 tax return. They must have been alive before 2020. If a surviving spouse received erroneous payments on a spouse who died before 2020, that amount must be returned to the IRS.
Recipients of Social Security, SSI, Railroad Retirement or Veteran’s Benefits, had EIP payments delivered in the same manner that they received their income. Past due Child Support is the only debt that was allowed to be taken from the EIP. Payments are not taxable for Federal or State and they are not included when filing the Homestead Credit.
Children who were born in 2020 are eligible for the additional child payment. Taxpayers who file jointly where only one individual has a valid SSN, the spouse with the valid SSN will receive the EIP and the corresponding amount for each qualifying child claimed on the 2019 tax return.
If the second EIP was sent to a closed account, a check or a prepaid debit card will be mailed to the address the IRS has on file.
You may call 1-800-660-5430 for a screening to see if you qualify for CAP Services VITA free tax preparation. We can assist you with many of these problems. This year’s tax preparation will be totally no contact.