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Taxpayers act now to receive Economic Impact Payments by direct deposit

People must use Get My Payment by noon Wednesday, May 13, for a chance to get their Economic Impact Payment by direct deposit.

After noon Wednesday, the IRS will begin preparing to mail millions of additional payments to those who haven’t received one yet. Taxpayers can expect to receive these payments beginning in late May. People who use Get My Payment before the deadline can still take advantage of the direct deposit option. Get My Payment is available in English and Spanish.

How Get My Payment works
The Get My Payment tool provides eligible taxpayers with an estimated deposit date for their Economic Impact Payment. The information is updated once a day, usually overnight. There is no need to check more often. Taxpayers who didn’t choose direct deposit on their last tax return can use this tool to enter bank account information to receive their payment by direct deposit.

Non-Filers tool is still available
For people not required to file a federal tax return, the Non-Filers: Enter Payment Info Here tool, available in English and Spanish, helps them submit basic information to have an Economic Impact Payment sent to their bank account. This tool is a free and easy option for those who don’t receive:

• Social Security retirement, survivor or disability benefits (SSDI)
• Railroad Retirement benefits
• Supplemental Security Income (SSI)
• VA Compensation and Pension (C&P)

Eligible taxpayers who filed tax returns for 2019 or 2018 will receive the payments automatically. Automatic payments are also being sent to those receiving Social Security retirement, disability benefits, Railroad Retirement benefits, Veterans Affairs benefits or Supplemental Security Income soon.

The IRS encourages people to share this information with family and friends.

Economic impact payments: What you need to know

Check IRS.gov for the latest information: No action needed by most people at this time

IR-2020-61, March 30, 2020

WASHINGTON — The Treasury Department and the Internal Revenue Service today announced that distribution of economic impact payments will begin in the next three weeks and will be distributed automatically, with no action required for most people. However, some taxpayers who typically do not file returns will need to submit a simple tax return to receive the economic impact payment.

Who is eligible for the economic impact payment?

Tax filers with adjusted gross income up to $75,000 for individuals and up to $150,000 for married couples filing joint returns will receive the full payment. For filers with income above those amounts, the payment amount is reduced by $5 for each $100 above the $75,000/$150,000 thresholds. Single filers with income exceeding $99,000 and $198,000 for joint filers with no children are not eligible. Social Security recipients and railroad retirees who are otherwise not required to file a tax return are also eligible and will not be required to file a return.

Eligible taxpayers who filed tax returns for either 2019 or 2018 will automatically receive an economic impact payment of up to $1,200 for individuals or $2,400 for married couples and up to $500 for each qualifying child.

How will the IRS know where to send my payment?

The vast majority of people do not need to take any action. The IRS will calculate and automatically send the economic impact payment to those eligible.

For people who have already filed their 2019 tax returns, the IRS will use this information to calculate the payment amount. For those who have not yet filed their return for 2019, the IRS will use information from their 2018 tax filing to calculate the payment. The economic impact payment will be deposited directly into the same banking account reflected on the return filed.

The IRS does not have my direct deposit information. What can I do?

In the coming weeks, Treasury plans to develop a web-based portal for individuals to provide their banking information to the IRS online, so that individuals can receive payments immediately as opposed to checks in the mail.

I am not typically required to file a tax return. Can I still receive my payment?

Yes. The IRS will use the information on the Form SSA-1099 or Form RRB-1099 to generate Economic Impact Payments to recipients of benefits reflected in the Form SSA-1099 or Form RRB-1099 who are not required to file a tax return and did not file a return for 2018 or 2019. This includes senior citizens, Social Security recipients and railroad retirees who are not otherwise required to file a tax return.

Since the IRS would not have information regarding any dependents for these people, each person would receive $1,200 per person, without the additional amount for any dependents at this time.

I have a tax filing obligation but have not filed my tax return for 2018 or 2019. Can I still receive an economic impact payment?

Yes. The IRS urges anyone with a tax filing obligation who has not yet filed a tax return for 2018 or 2019 to file as soon as they can to receive an economic impact payment. Taxpayers should include direct deposit banking information on the return.

I need to file a tax return. How long are the economic impact payments available?

For those concerned about visiting a tax professional or local community organization in person to get help with a tax return, these economic impact payments will be available throughout the rest of 2020.

Where can I get more information?

The IRS will post all key information on IRS.gov/coronavirus as soon as it becomes available.

The IRS has a reduced staff in many of its offices but remains committed to helping eligible individuals receive their payments expeditiously. Check for updated information on IRS.gov/coronavirus rather than calling IRS assistors who are helping process 2019 returns.

Payment deadline extended to July 15, 2020

The Treasury Department and the Internal Revenue Service are providing special payment relief to individuals and businesses in response to the COVID-19 Outbreak. The filing deadline for tax returns remains April 15, 2020. The IRS urges taxpayers who are owed a refund to file as quickly as possible. For those who can’t file by the April 15, 2020 deadline, the IRS reminds individual taxpayers that everyone is eligible to request a six-month extension to file their return.

This payment relief includes:

Individuals: Income tax payment deadlines for individual returns, with a due date of April 15, 2020, are being automatically extended until July 15, 2020, for up to $1 million of their 2019 tax due. This payment relief applies to all individual returns, including self-employed individuals, and all entities other than C-Corporations, such as trusts or estates. IRS will automatically provide this relief to taxpayers. Taxpayers do not need to file any additional forms or call the IRS to qualify for this relief.

Corporations: For C Corporations, income tax payment deadlines are being automatically extended until July 15, 2020, for up to $10 million of their 2019 tax due.

This relief also includes estimated tax payments for tax year 2020 that are due on April 15, 2020.

Penalties and interest will begin to accrue on any remaining unpaid balances as of July 16, 2020. If you file your tax return or request an extension of time to file by April 15, 2020, you will automatically avoid interest and penalties on the taxes paid by July 15.

The IRS reminds individual taxpayers the easiest and fastest way to request a filing extension is to electronically file Form 4868 through their tax professional, tax software or using the Free File link on IRS.gov. Businesses must file Form 7004.

This relief only applies to federal income tax (including tax on self-employment income) payments otherwise due April 15, 2020, not state tax payments or deposits or payments of any other type of federal tax. Taxpayers also will need to file income tax returns in 42 states plus the District of Columbia. State filing and payment deadlines vary and are not always the same as the federal filing deadline. The IRS urges taxpayers to check with their state tax agencies for those details.

Taxpayers should know the signs of a phone scam, especially during filing season

Taxpayers should be aware that aggressive criminals pose as IRS agents in hopes of stealing money or personal information. The tax filing season is a prime time for phone scams because people are thinking about taxes.

Here are some tell-tale signs of a tax scam along with actions taxpayers can take if they receive a scam call.

The IRS will never:

  • Call to demand immediate payment using a specific payment method such as a prepaid debit card, gift card or wire transfer. Generally, the IRS will first mail a bill to any taxpayer who owes taxes.
  • Threaten to immediately bring in local police or other law enforcement groups to have the taxpayer arrested for not paying.
  • Demand that taxes be paid without giving taxpayers the opportunity to question or appeal the amount owed.
  • Call out of the blue about an unexpected tax refund.

Taxpayers who receive these phone calls should:

More information:
Tax Scams and Consumer Alerts
Report Phishing and Online Scams

Taxpayers filing for the first time should look into Free File

If you are one of the many people who will be filing federal taxes for the first time this year, IRS Free File may be the perfect match, especially if you are looking to save money on tax preparation.

Most Free File users are under the age of 30 with modest incomes. The Free File adjusted gross income limit for 2020 is $69,000. If you want to do your own taxes, Free File means free tax preparation, free electronic filing and free direct deposit, which is the fastest way to get a refund.

Free File features 10 brand-name tax software providers who are in a partnership with the IRS to offer their online products for free. Each provider sets additional eligibility requirements, generally based on age, state residency and income.

Taxpayers using Free File software for the first time will need a few things before starting. You will need:

•Your Social Security number.

•Your wage and income information. This is usually found on forms from your employer such as Form W-2 and Form 1099.

•Make sure your parents are not claiming you as a dependent. If your parents are claiming you as a dependent you may still file a separate tax return, but make sure you indicate you are a dependent on another person’s return.

•Documentation for all tax credits and deductions. You should remember that the standard deduction has been greatly increased so that itemizing deductions may not be necessary

•Prior-year adjusted gross income. This is required for all electronic tax returns as part of the user’s electronic signature. First-time filers over the age of 16 can simply enter “0” as your prior-year income for signature purposes. If you have filed before, your prior-year tax return will show your adjusted gross income.

•Your bank account and routing number. Most people receive a tax refund. This is the fastest way to get your money; through direct deposit to a financial account.

Remember these tips when searching for a tax preparer

The tax filing season is upon us, and if you will be looking for someone to help you file a tax return you should choose your tax return preparer wisely.

This is because it’s ultimately you who is responsible for all the information on your income tax return. It’s important for you to remember that this is true no matter who prepares the return.

Here are some tips to remember when selecting a preparer:

Check the Preparer’s Qualifications. You can use the IRS Directory of Federal Tax Return Preparers with Credentials and Select Qualifications. This tool helps you find a tax return preparer with specific qualifications. The directory is a searchable and sortable listing of preparers.

Check the Preparer’s History. You can ask the local Better Business Bureau about the preparer. You should check for disciplinary actions and the license status for credentialed preparers. There are some additional organizations with information about specific types of preparers:
•Enrolled Agents: Go to the verify enrolled agent status page on IRS.gov.
•Certified Public Accountants: Check with the State Board of Accountancy.
•Attorneys: Check with the State Bar Association.

Ask about Service Fees. You should avoid preparers who base fees on a percentage of the refund or who boast bigger refunds than their competition.

Ask to e-file. The quickest way for you to get your refund is to electronically file your federal tax return and choose direct deposit.

Make Sure the Preparer is Available. You may want to contact your preparer after this year’s April 15 due date. You should avoid “fly-by-night” preparers.

Provide Records and Receipts. Good preparers will ask to see your records and receipts. They’ll ask questions to figure things like the total income, tax deductions and credits.

Never Sign a Blank Return. You should not use a tax preparer who asks you to sign a blank tax form.

Review Before Signing. Before signing a tax return, you should review it. You should ask questions if something is not clear. You should feel comfortable with the accuracy of your return before you sign it. Once you sign the return, you are accepting responsibility for the information on it.

Review details about any refund. You should make sure that your refund goes directly to you – not to the preparer’s bank account. You should review the routing and bank account number on the completed return.

Ensure the Preparer Signs and Includes their PTIN. All paid tax preparers must have a Preparer Tax Identification Number. By law, paid preparers must sign returns and include their PTIN.

Report Abusive Tax Preparers to the IRS. Most tax return preparers are honest and provide great service to their clients. However, some preparers are dishonest. You can report abusive tax preparers and suspected tax fraud to the IRS. Use Form 14157, Complaint: Tax Return Preparer.

 

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