IRS Provides Updated Information on Economic Impact Payments and May 13 Deadline to Provide Bank Information to Receive Payment Via Direct Deposit
More questions have emerged regarding the Economic Impact Payments from the Federal Government. Our original Daily Update on the Economic Impact Payments appeared on April 10th, but on May 11th, new information was added to the Q&A section of the IRS website that we believe may be relevant to many of you.
In addition to the Q&A, the IRS issued a news release on May 8th stating that the last chance to provide your bank account information to the IRS to receive your Economic Impact Payment via direct deposit rather than wait for a paper check is noon on Wednesday, May 13. If you miss the May 13th deadline, you should still go to the Get My Payment link to see the status of your payment by check.
Where is your payment?
If you have not received your payment and you have filed a tax return for 2019 or 2018, you may check the status by visiting https://www.irs.gov/coronavirus/economic-impact-payments and use the “Get My Payment” application. You may also confirm if the payment will arrive through direct deposit or U.S. Mail.
If you are a non-filer, you may use the same link but select the “Non-Filers: Enter Payment Info Here” application.
The IRS created a page dedicated on how to use the multiple tools available to help you determine what to do to receive your Economic Impact Payment at https://www.irs.gov/newsroom/how-to-use-the-tools-on-irsgov-to-get-your-economic-impact-payment.
How long is the Payment available? (Question 18)
Payments will be made throughout the rest of 2020. If you don’t receive a Payment this year, you can also claim it by filing a tax return for 2020 next year.
Is the amount of your Economic Impact Payment incorrect? (Question 29)
If you did not receive the full amount to which you believe you are entitled, you will be able to claim the additional amount when you file your 2020 tax return. This is particularly important for individuals who may be entitled to the additional $500 per qualifying child dependent payments. For VA and SSI recipients who don’t have a filing requirement and have a child, they need to use the Non-Filers tool on IRS.gov by May 5 in order to have the $500 added automatically to their $1,200 Economic Impact payment. You may review the “How do I calculate my EIP Payment” question and answer (See question 21).
You received a payment for someone who passed away. (Question 10)
If the Payment was made to someone who died before receipt of the Payment, it should be returned to the IRS by following the instructions in Q&A 41 about repayments. You must return the entire Payment unless the Payment was made to joint filers and one spouse had not died before receipt of the Payment. If that describes your situation, you will only be required to return the portion of the Payment made on account of the decedent. This amount will be $1,200 unless adjusted gross income exceeded $150,000.
How do I return the payment? (Question 41)
You should return the payment as described below.
If the payment was a paper check:
- Write “Void” in the endorsement section on the back of the check.
- Mail the voided Treasury check immediately to the appropriate IRS location listed below.
- Don’t staple, bend, or paper clip the check.
- Include a note stating the reason for returning the check.
If the payment was a paper check and you have cashed it, or if the payment was a direct deposit:
- Submit a personal check, money order, etc., immediately to the appropriate IRS location listed below.
- Write on the check/money order made payable to “U.S. Treasury” and write 2020EIP, and the taxpayer identification number (social security number, or individual taxpayer identification number) of the recipient of the check.
- Include a brief explanation of the reason for returning the EIP.
Where you return your payment depends on where you live. For a complete list of states and the corresponding mailing address, refer to Question 41 located on the IRS Economic Impact Payment Information Center as the addresses were updated on May 11, 2020, and may be updated again.
This article was originally published on May 8, 2020, and updated on May 11, 2020 to reflect new information and links.
DISCLAIMER: The WM Daily Update COVID-19, COVID-19 Business Resources and COVID-19 Client News Alerts and other related communications are intended to provide general information on legislative COVID-19 relief measures as of the date of this communication and may reference information from reputable sources. Although our firm has made every reasonable effort to ensure that the information provided is accurate, we make no warranties, expressed or implied, on the information provided. As legislative efforts are still ongoing, we expect that there may be additional guidance and clarification from regulators that may modify some of the provisions in this communication. Some of those modifications may be significant. As such, be aware that this is not a comprehensive analysis of the subject matter covered and is not intended to provide specific recommendations to you or your business with respect to the matters addressed.
Wouch Maloney
