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Here’s why taxpayers should have an IRS online account

Here’s why taxpayers should have an IRS online account

An IRS online account is an safe an easy way for individual taxpayers to view specific details about their federal tax account. Here are some of the benefits and features of this online system.

Taxpayers can view:

  • Their payoff amount, which is updated for the current day.
  • The balance for each tax year for which they owe taxes.
  • Their payment history.
  • Key information from the their most current tax return as originally filed.
  • Payment plan details if they have one.
  • Digital copies of select IRS notices.
  • Economic Impact Payments if they received any.
  • Their address on file.

After viewing their information, a taxpayer can:

  • Select an electronic payment option.
  • Set up an online payment agreement.
  • Go directly to Get Transcript.

New authorization feature

The new the “authorization” option in Online Account allows taxpayers to control who can represent them before the IRS or view their tax records. They can also approve and electronically sign Power of Attorney and Tax Information Authorization requests from their tax professional.

Taxpayer’s balance will update no more than once every 24 hours, usually overnight. Taxpayers should also allow 1 to 3 weeks for payments to show up in the payment history.

To access their information online, taxpayers must register through Secure Access. This is the agency’s two-factor authentication process that protects personal info. Taxpayers can review the Secure Access page process prior to starting registration.

Unenrolling from Advance Payments

 

A1. You may want to unenroll from receiving advance Child Tax Credit payments for several reasons, including if you expect the amount of tax you owe to be greater than your expected refund when you file your 2021 tax return. The payments you receive are an advance of the Child Tax Credit that you would normally get when you file your 2021 tax return. Because these credits are paid in advance, every dollar you receive will reduce the amount of Child Tax Credit you will claim on your 2021 tax return. This means that by accepting advance child tax credit payments, the amount of your refund may be reduced or the amount of tax you owe may increase.

You may avoid owing tax to the IRS if you unenroll and claim the entire credit when you file your 2021 tax return.

A2. To stop advance payments, you must unenroll 3 days before the first Thursday of next month by 11:59 p.m. Eastern Time.

Payment Month Unenrollment Deadline Payment Date
July 6/28/2021 7/15/2021
August 8/2/2021 8/13/2021
September 8/30/2021 9/15/2021
October 10/4/2021 10/15/2021
November 11/1/2021 11/15/2021
December 11/29/2021 12/15/2021

A3. You will get the next scheduled advance payment until we process your request to unenroll.

A4. It may take up to seven calendar days. Check back after unenrolling to make sure your request was processed successfully.

A5. You cannot re-enroll at this time. Unenrollment is a one-time action. You will be able to re-enroll starting in late September 2021.

A7. If you don’t unenroll, you will get half of the joint payment you were supposed to receive with your spouse.

2021 Child Tax Credit and Advance Child Tax – General Information

A1. Advance Child Tax Credit payments are early payments from the IRS of 50 percent of the estimated amount of the Child Tax Credit that you may properly claim on your 2021 tax return during the 2022 tax filing season. If the IRS has processed your 2020 tax return or 2019 tax return, these monthly payments will be made starting in July and through December 2021, based on the information contained in that return.

Note: Advance Child Tax Credit payment amounts are not based on the Credit for Other Dependents, which is not refundable. For more information about the Credit for Other Dependents, see IRS Publication 972, Child Tax Credit and Credit for Other Dependents PDF.

For more information about how your advance Child Tax Credit payments are calculated, see Topic D: Calculation of Advance Child Tax Credit Payments.

The expanded and newly-advanceable Child Tax Credit was authorized by the American
Rescue Plan Act, enacted in March. Normally, the IRS will calculate the payment based on a
family’s 2020 tax return, including those who use the Non-filer Sign-up Tool. If that return is not
available because it has not yet been filed or is still being processed, the IRS will instead
determine the initial payment amounts using the 2019 return or the information entered using
the Non-filers tool that was available in 2020.
The payment will be up to $300 per month for each child under age 6 and up to $250 per month
for each child age 6 through 17.
To make sure families have easy access to their money, the IRS will issue these payments by
direct deposit, as long as correct banking information has previously been provided to the IRS.
Otherwise, people should watch their mail around July 15 for their mailed payment. The dates
for the Advance Child Tax Credit payments are July 15, Aug. 13, Sept. 15, Oct. 15, Nov. 15, and
Dec. 15.
For more information, visit IRS.gov/childtaxcredit2021, or read FAQs on the 2021 Child Tax
Credit and Advance Child Tax Credit Payments.

A2. Generally, nothing. If you are eligible to receive advance Child Tax Credit payments based on your 2020 tax return or 2019 tax return (including information you entered into the Non-Filer tool for Economic Impact Payments on IRS.gov in 2020), you generally will receive those payments automatically without needing to take any additional action.

You must take action if you have not filed your 2020 tax return or 2019 tax return. The IRS has unveiled an online Non-Filer tool that will allow individuals who weren’t required to file (and have not filed) a tax return for 2020 to file a simplified tax return. This simplified tax return will allow eligible individuals to register for advance Child Tax Credit payments and the third Economic Impact Payment, as well as claim the 2020 Recovery Rebate Credit. Taxpayers also can visit IRS.gov/filing for details about:

The fastest way to get advance payments is to file your tax return electronically and provide information about your financial account so that you can receive your payments by direct deposit. You can use a bank account, prepaid debit card, or mobile app for your direct deposit and will need to provide routing and account numbers.

For more information regarding eligibility and how advance Child Tax Credit payments are disbursed, see Topic B: Eligibility for Advance Child Tax Credit Payments and the 2021 Child Tax Credit and Topic E: Advance Payment Process of the Child Tax Credit.​​​

A3. No. Even if you have $0 in income, you can receive advance Child Tax Credit payments if you are eligible.

For information regarding eligibility, see Topic B: Eligibility for Advance Child Tax Credit Payments and the 2021 Child Tax Credit.

A4. If you cannot or choose not to use the Non-Filer tool, IRS Free File, or Free File Fillable Forms to file your 2020 tax return, there are various types of tax return preparers, including certified public accountants, enrolled agents, attorneys, and others who can assist you in filing your return. For more information about these and other return preparers who might be right for you, visit Need someone to prepare your tax return?.

A5. If you prefer not to receive monthly advance Child Tax Credit payments because you would rather claim the full credit when you file your 2021 tax return, or you know you will not be eligible for the Child Tax Credit for your 2021 tax year, you will be able to unenroll through the Child Tax Credit Update Portal (CTC UP). CTC UP will be available in June and will allow you to unenroll before the first advance Child Tax Credit payment is made. You will not be able to unenroll before the portal is open.

For more information regarding CTC UP, see Topic F: Updating Your Child Tax Credit Information During 2021.

A6. The IRS will begin disbursing advance Child Tax Credit payments on July 15. After that, payments will be disbursed on a monthly basis through December 2021.

For more information regarding how advance Child Tax Credit payments are disbursed, see Topic E: Advance Payment Process of the Child Tax Credit.

A7. Yes. In June, the IRS will send you Letter 6417. This letter will inform you of the amount of your estimated Child Tax Credit monthly payments. This letter will also indicate where you can find additional information about advance Child Tax Credit payments.

A8. You qualify for advance Child Tax Credit payments if you have a qualifying child. Also, you — or your spouse, if married filing a joint return — must have your main home in one of the 50 states or the District of Columbia for more than half the year. Your main home can be any location where you regularly live. Your main home may be your house, apartment, mobile home, shelter, temporary lodging, or other location and doesn’t need to be the same physical location throughout the taxable year. You don’t need a permanent address to get these payments. If you are temporarily away from your main home because of illness, education, business, vacation, or military service, you are generally treated as living in your main home.

For more information regarding eligibility for advance Child Tax Credit payments, and the Child Tax Credit generally, see Topic B: Eligibility for Advance Child Tax Credit Payments and the 2021 Child Tax Credit.

For information on how the amount of your Child Tax Credit could be reduced based on the amount of your income, see Topic C: Calculation of the 2021 Child Tax Credit.

A10. No. Advance Child Tax Credit payments are not income and will not be reported as income on your 2021 tax return. Advance Child Tax Credit payments are advance payments of your tax year 2021 Child Tax Credit.

However, the total amount of advance Child Tax Credit payments that you receive during 2021 is based on the IRS’s estimate of your 2021 Child Tax Credit. If the total is greater than the Child Tax Credit amount that you are allowed to claim on your 2021 tax return, you may have to repay the excess amount on your 2021 tax return during the 2022 tax filing season. For example, if you receive advance Child Tax Credit payments for two qualifying children properly claimed on your 2020 tax return, but you no longer have qualifying children in 2021, the advance Child Tax Credit payments that you received based on those children are added to your 2021 income tax unless you qualify for repayment protection. For more information regarding your eligibility for repayment protection, and how to reconcile your advance Child Tax Credit payments with your Child Tax Credit on your 2021 tax return, see Topic H: Reconciling Your Advance Child Tax Credit Payments on Your 2021 Tax Return.

For this reason, you may wish to unenroll from receiving advance Child Tax Credit payments. You will be able to unenroll through the Child Tax Credit Update Portal (CTC UP), which will become available in June. For more information regarding the CTC UP, see Topic F: Updating Your Child Tax Credit Information During 2021.

A11. Yes. In January 2022, the IRS will send you Letter 6419 to provide the total amount of advance Child Tax Credit payments that were disbursed to you during 2021. Please keep this letter regarding your advance Child Tax Credit payments with your tax records. You may need to refer to this letter when you file your 2021 tax return during the 2022 tax filing season.

For more information regarding this letter and how to reconcile your advance Child Tax Credit payments with your Child Tax Credit on your 2021 return, see Topic H: Reconciling Your Advance Child Tax Credit Payments on Your 2021 Tax Return.

A12. No. Advance Child Tax Credit payments cannot be counted as income when determining if you or anyone else is eligible for benefits or assistance, or how much you or anyone else can receive, under any federal program or under any state or local program financed in whole or in part with federal funds. These programs also cannot count advance Child Tax Credit payments as a resource for purposes of determining eligibility for at least 12 months after you receive it.

A13. The IRS will provide on IRS.gov a Child Tax Credit Update Portal (CTC UP), which will allow you update information with the IRS, including your bank account information.

CTC UP will be available on IRS.gov starting in June, and initially will only allow you to elect not to receive advance Child Tax Credit payments. The IRS will add features to CTC UP later this year, which are described in QF-1, below.

For more information regarding CTC UP, see Topic F: Updating Your Child Tax Credit Information During 2021.

A14. The IRS urges everyone to be on the lookout for scam artists trying to use advance Child Tax Credit payments as a cover for schemes to steal personal information and money. The IRS doesn’t initiate contact by email, text messages, or social media channels to request personal or financial information – even information related to advance Child Tax Credit payments. Also, watch out for emails with attachments or links claiming to have special information about advance Child Tax Credit payments or refunds of the Child Tax Credit.

If you receive a suspicious IRS-related email, see Report Phishing and Online Scams for additional information.

A15. The IRS will be releasing additional materials and information that can be easily shared by social media, email, and other methods. The IRS urges employers, community groups, non-profits, associations, education groups, and anyone else with connections to people with children to share this critical information about advance Child Tax Credit payments and the Child Tax Credit expansions for the 2021 tax year.

A16. You will be able to update certain information in the coming months:

*Date You Can Make Changes What You Can Do
June 21
  • Find out if you’re eligible
  • Unenroll from payments
  • See a list your payments
Late June
  • Make changes to your bank information for your payments beginning in August
Early August
  • Make changes to your address
Late summer
  • Make changes to your dependents, marital status and income
  • Re-enroll if you previously unenrolled

How the American Rescue Plan affects 2021

Here are the first two tax tips providing an overview of how the American Rescue Plan may affect some individual’s 2021 taxes.

COVID Tax Tip 2021-78

Child and dependent care credit increased for 2021 only

The new law increases the amount of the credit and the percentage of employment-related expenses for qualifying care considered in calculating the credit, modifies the phase-out of the credit for higher earners, and makes it refundable for eligible taxpayers.

For 2021, eligible taxpayers can claim qualifying employment-related expenses up to:

  • $8,000 for one qualifying individual, up from $3,000 in prior years, or
  • $16,000 for two or more qualifying individuals, up from $6,000.

The maximum credit in 2021 increased to 50% of the taxpayer’s employment-related expenses, which equals $4,000 for one qualifying individual, or $8,000 for two or more qualifying individuals. When figuring the credit, a taxpayer must subtract employer-provided dependent care benefits, such as those provided through a flexible spending account, from total employment-related expenses.

A qualifying individual is a dependent under the age of 13, or a dependent of any age or spouse who is incapable of self-care and who lives with the taxpayer for more than half of the year.

As before, the more a taxpayer earns, the lower the percentage of employment-related expenses that are considered in determining the credit. However, under the new law, more individuals will qualify for the new maximum 50% of employment-related expenses credit percentage rate. That’s because the adjusted gross income level at which the credit percentage starts to phase out is raised to $125,000. Above $125,000, the 50% credit percentage goes down as income rises. It is entirely unavailable for any taxpayer with adjusted gross income over $438,000.

The credit is fully refundable for the first time in 2021. This means an eligible taxpayer can receive it, even if they owe no federal income tax. To be eligible for the refundable portion of the credit, a taxpayer, or the taxpayer’s spouse if filing a joint return, must reside in the United States for at least half of the year.

Workers can set aside more in a dependent care FSA

For 2021, the maximum amount of tax-free employer-provided dependent care benefits increased to $10,500. This means an employee can set aside $10,500 in a dependent care flexible spending account, instead of the normal $5,000.

Workers can only do this if their employer adopts this change. Employees should contact their employer for details.

Childless EITC expanded for 2021

For 2021 only, more workers without qualifying children can qualify for the earned income tax credit, a fully refundable tax benefit that helps many low- and moderate-income workers and working families. That’s because the maximum credit is nearly tripled for these taxpayers and is, for the first time, available to younger workers and now has no age limit cap.

For 2021, EITC is generally available to filers without qualifying children who are at least 19 years old with earned income below $21,430; $27,380 for spouses filing a joint return. The maximum EITC for filers with no qualifying children is $1,502.

Another change for 2021, allows individuals to figure the EITC using their 2019 earned income if it was higher than their 2021 earned income. In some instances, this option will give them a larger credit.

COVID Tax Tip 2021-79, June 3, 2021

Changes expanding EITC for 2021 and beyond

New law changes expand the EITC for 2021 and future years. These changes include:

  • More workers and working families who also have investment income can get the credit. Starting in 2021, the amount of investment income they can receive and still be eligible for the EITC increases to $10,000.
  • Married but separated spouses who do not file a joint return may qualify to claim the EITC. They qualify if they live with their qualifying child for more than half the year and either:
    • Do not have the same principal place of abode as the other spouse for at least the last six months of tax year for which the EITC is being claimed, or
    • Are legally separated according to their state law under a written separation agreement or a decree of separate maintenance and do not live in the same household as their spouse at the end of tax year for which the EITC is being claimed.

Expanded child tax credit for 2021 only

The American Rescue Plan made several notable but temporary changes to child tax credit, including:

  • Increasing the amount of the credit
  • Making it available for qualifying children who turn age 17 in 2021
  • Making it fully refundable for most taxpayers
  • Allowing many taxpayers to receive half of the estimated 2021 credit, in advance.

Taxpayers who have qualifying children under age 18 at the end of 2021 can now get the full credit if they have little or no income from a job, business, or other source. Prior to 2021, the credit was worth up to $2,000 per qualifying child, with the refundable portion limited to $1,400 per child. The new law increases the credit to as much as $3,000 per child ages 6 through 17 at the end of 2021, and $3,600 per child ages 5 and under at the end of 2021. For taxpayers who have their main homes in the United States for more than half of the tax year and bona fide residents of Puerto Rico, the credit is fully refundable, and the $1,400 limit does not apply.

The maximum credit is available to taxpayers with a modified adjusted gross income of:

  • $75,000 or less for single filers and married persons filing separate returns
  • $112,500 or less for heads of household
  • $150,000 or less for married couples filing a joint return and qualifying widows and widowers

Above these income thresholds, the excess amount over the original $2,000 credit — either $1,000 or $1,600 per child — reduces by $50 for every $1,000 in additional modified AGI. The original $2,000 credit continues to be reduced by $50 for every $1,000 that modified AGI is more than $200,000; $400,000 for married couples filing a joint return.

Advance child tax credit payments

From July 15 through December 2021, Treasury and the IRS will advance one half of the estimated 2021 child tax credit in monthly payments to eligible taxpayers. Eligible taxpayers are taxpayers who have a main home in the United States for more than half the year. This means the 50 states and the District of Columbia. U.S. military personnel stationed outside the United States on extended active duty are considered to have a main home in the United States.

The monthly advance payments will be estimated from their 2020 tax return, or their 2019 tax return if 2020 information is not available. Advance payments will not be reduced or offset for overdue taxes or other federal or state debts that taxpayers or their spouses owe. Taxpayers will claim the remaining child tax credit based on their 2021 information when they file their 2021 income tax return.

Update for taxpayers who paid taxes on 2020 unemployment compensation

The IRS is sending more than 2.8 million refunds to those who already paid taxes on 2020 unemployment compensation.

Earned Income Tax Credit (EITC) adjustments

  • Taxpayers who have qualifying children and who become eligible for EITC after the exclusion is calculated may have to file an amended return to claim any new benefits.
  • The IRS can adjust tax returns for those who are single with no children and who become eligible for EITC.
  • The IRS also can adjust tax returns where EITC was claimed and qualifying children identified.

The IRS plans to issue the next set of refunds in mid-June. The review of returns and processing corrections will continue during the summer as the IRS continues to review the simplest returns and then turns to more complex returns.

Taxpayers will receive letters from the IRS, generally within 30 days of the adjustment, informing them of what kind of adjustment was made (such as refund, payment of IRS debt payment or payment offset for other authorized debts) and the amount of the adjustment.

IRS News – Families Who May Qualify for Child Tax Credits

IRS sending letters to more than 36 million families who may qualify for monthly Child Tax Credits; payments start July 15

WASHINGTON — The Internal Revenue Service has started sending letters to more than 36 million American families who, based on tax returns filed with the agency, may be eligible to receive monthly Child Tax Credit payments starting in July.

The expanded and newly-advanceable Child Tax Credit was authorized by the American Rescue Plan Act, enacted in March. The letters are going to families who may be eligible based on information they included in either their 2019 or 2020 federal income tax return or who used the Non-Filers tool on IRS.gov last year to register for an Economic Impact Payment.
Families who are eligible for advance Child Tax Credit payments will receive a second, personalized letter listing an estimate of their monthly payment, which begins July 15.

Most families do not need to take any action to get their payment. Normally, the IRS will calculate the payment amount based on the 2020 tax return.  If that return is not available, either because it has not yet been filed or it has not yet been processed, the IRS will instead determine the payment amount using the 2019 return.

Eligible families will begin receiving advance payments, either by direct deposit or check. The payment will be up to $300 per month for each qualifying child under age 6 and up to $250 per month for each qualifying child ages 6 to 17.The IRS will issue advance Child Tax Credit payments on July 15, Aug. 13, Sept. 15, Oct. 15, Nov. 15 and Dec. 15.

Eligible families should file tax returns soon

The IRS urges individuals and families who haven’t yet filed their 2020 return – or 2019 return – to do so as soon as possible so they can receive any advance payment they’re eligible for.

Filing soon will also ensure that the IRS has their most current banking information, as well as key details about qualifying children. This includes people who don’t normally file a tax return, such as families experiencing homelessness, the rural poor, and other underserved groups.

For most people, the fastest and easiest way to file a return is by using the Free File system, available only on IRS.gov.

Throughout the summer, the IRS will be adding additional tools and online resources to help with the advance Child Tax Credit. One of these tools will enable families to unenroll from receiving these advance payments and instead receive the full amount of the credit when they file their 2021 return next year.

Additionally, later this year, individuals and families will also be able to go to IRS.gov and use a Child Tax Credit Update Portal to notify IRS of changes in their income, filing status, or number of qualifying children; update their direct deposit information; and make other changes to ensure they are receiving the right amount as quickly as possible.

Other tools coming soon

The IRS has created a special Advance Child Tax Credit 2021 page at IRS.gov/childtaxcredit2021, designed to provide the most up-to-date information about the credit and the advance payments.

In the next few weeks, the page will also feature other useful new online tools, including:

• An interactive Child Tax Credit eligibility tool to help families determine whether they qualify for the Advance Child Tax Credit payments.
• Another tool, the Child Tax Credit Update Portal, will initially enable anyone who has been determined to be eligible for advance payments unenroll/ to opt out of the advance payment program. Later this year, it will allow people to check on the status of their payments, make updates to their information, and be available in Spanish.  More details will be available soon about the online Child Tax Credit Update Portal.

Child Tax Credit Changes

The American Rescue Plan raised the maximum Child Tax Credit in 2021 to $3,600 for qualifying children under the age of 6 and to $3,000 per child for qualifying children between ages 6 and 17. Before 2021, the credit was worth up to $2,000 per eligible child, and 17 year-olds were not considered as qualifying children for the credit.

The new maximum credit is available to taxpayers with a modified adjusted gross income (AGI) of:
• $75,000 or less for singles,
• $112,500 or less for heads of household, and
• $150,000 or less for married couples filing a joint return and qualified widows and widowers.

For most people, modified AGI is the amount shown on Line 11 of their 2020 Form 1040 or 1040-SR. Above these income thresholds, the extra amount above the original $2,000 credit — either $1,000 or $1,600 per child — is reduced by $50 for every extra $1,000 in modified AGI.

In addition, the entire credit is fully refundable for 2021. This means that eligible families can get it, even if they owe no federal income tax. Before this year, the refundable portion was limited to $1,400 per child.

The IRS urges community groups, non-profits, associations, education organizations, and others with connections to people with children to share this critical information about the Child Tax Credit as well as other important benefits. The IRS will be providing in the near future additional materials and information that can be easily shared by social media, email and other methods.

For the most up-to-date information on the Child Tax Credit and advance payments, visit Advance Child Tax Credit Payments in 2021.

February 1 is the deadline for employers to issue and file wage statements

February 1 is the deadline for employers to issue and file wage statements

Employers must file Form W-2 and other wage statements by Monday, February 1, 2021. This is also the date Form W-2s are due to employees.

By law, employers are required to file copies of their Form W-2Wage and Tax Statement, and Form W-3Transmittal of Wage and Tax Statements, with the Social Security Administration by January 31. However, since January 31 falls on a Sunday in 2021, the deadline is the next business day, Monday, February 1.

Form 1099-MISCMiscellaneous Income and Form 1099-NECNonemployee Compensation, are also due to recipients on February 1, 2021, with some exceptions. Other due dates related to Form 1099 are listed in the instructions for these forms.

Timely filing helps prevent fraud.
Filing wage statements on time and without errors is beneficial to employers and the IRS. The employer avoids penalties, and the IRS has time to verify income taxpayers report on their tax returns, which helps prevent fraud.

Employers should plan and prepare early.
Good preparation now can help employers avoid problems later. For instance, employers can start by verifying or updating employee information, such as:
•  Names
•  Addresses
•  Social Security numbers
•  Individual Taxpayer Identification Numbers

Employers should be sure their account information is current and active with the Social Security Administration as soon as possible. Lastly, employers should order paper Form W-2s, if needed.

Automatic extensions of time to file Form W-2s are not available. The IRS will only grant extensions for very specific reasons. For details, employers should read the instructions for Form 8809Application for Extension of Time to File Information Returns.

 

IRS extends Economic Impact Payment deadline to Nov. 21 to help non-filers

 

IRS extends Economic Impact Payment deadline to Nov. 21 to help non-filers

WASHINGTON – The Internal Revenue Service announced today that the deadline to register for an Economic Impact Payment (EIP) is now Nov. 21, 2020. This new date will provide an additional five weeks beyond the original deadline.

The IRS urges people who don’t typically file a tax return – and haven’t received an Economic Impact Payment – to register as quickly as possible using the Non-Filers: Enter Info Here tool on IRS.gov. The tool will not be available after Nov. 21.

“We took this step to provide more time for those who have not yet received a payment to register to get their money, including those in low-income and underserved communities,” said IRS Commissioner Chuck Rettig. “The IRS is deeply involved in processing and programming that overlaps filing seasons. Any further extension beyond November would adversely impact our work on the 2020 and 2021 filing seasons. The Non-filers portal has been available since the spring and has been used successfully by many millions of Americans.”

Special note: This additional time into November is solely for those who have not received their EIP and don’t normally file a tax return. For taxpayers who requested an extension of time to file their 2019 tax return, that deadline date remains Oct. 15.

To support the ongoing EIP effort, many partner groups have been working with the IRS, helping translate and making available in 35 languages IRS information and resources on Economic Impact Payments.

To help spread the word, the IRS sent nearly 9 million letters in September to people who may be eligible for the $1,200 Economic Impact Payments but don’t normally file a tax return. This push encourages people to use the Non-Filers tool on IRS.gov.

“Time is running out for those who don’t normally file a tax return to get their payments,” Rettig added. “Registration is quick and easy, and we urge everyone to share this information to reach as many people before the deadline.”

While most eligible U.S. taxpayers have automatically received their Economic Impact Payment, others who don’t have a filing obligation need to use the Non-Filers tool to register with the IRS to get their money. Typically, this includes people who receive little or no income.

The Non-Filers tool is secure and is based on Free File Fillable Forms, part of the Free File Alliance’s offering of free products on IRS.gov.

The Non-Filers tool is designed for people with incomes typically below $24,400 for married couples, and $12,200 for singles who could not be claimed as a dependent by someone else. This includes couples and individuals who are experiencing homelessness.

Anyone using the Non-Filers tool can speed the arrival of their payment by choosing to receive it by direct deposit. Those not choosing this option will get a check.

Beginning two weeks after they register, people can track the status of their payment using the Get My Payment tool, available only on IRS.gov.

IRS now sending $500 payments to taxpayers who did not originally receive the correct amount of their Stimulus Payment

If you get $500 from Uncle Sam in the next week or so, don’t freak out. It’s real if you used one of the Internal Revenue Service’s online coronavirus registration tools and didn’t originally get all the relief you were due.

The tax agency is sending the money to those who previously were denied the $500 per child economic impact payment (EIP) amount created by the Coronavirus Aid, Relief and Economic Security (CARES) Act.

The problem with the shorted amount wasn’t with these individuals’ or their minor children’s’ eligibility.

It was due to a glitch in the IRS system set up to deliver the payments and the timing of when they made requests for the stimulus money.

Problem with non-filers solution: The original stimulus payouts of $1,200 per taxpayer were based on a person’s 2019 or 2018 tax year federal income tax returns. Where filers claimed dependents, children younger than 17 usually meant an additional $500.

Since some eligible EIP recipients weren’t required to file returns for either tax year, in early April the IRS established an online non-filers tool that allowed these individuals to register for the payments.

Sometimes, though, good intentions go awry, especially when you’re trying to get things done in a hurry. That happened for some folks who had legitimate minor dependents and who used the IRS’ non-filer tool.

Early EIP request issues: The IRS says that eligible individuals who used the non-filer tool before May 17 and claimed at least one qualifying child did not receive the qualifying child portion.

The reason was an error in the system that was corrected on that May date.

So now the IRS is sending out the appropriate $500 dependent payments to those who used the online registration tool before May 17.

Usual delivery methods: The corrected amount of dependent EIP money will be delivered as direct deposit to those who included that information when they used the non-filer online option.

The IRS started depositing those payments on Aug. 5, so in most instances, that money should have showed up in bank accounts by now.

If you are due an extra $500 (or more, depending on the number of qualifying children) and don’t have a bank account, the IRS is sending your EIP via the U.S. Postal Service as a paper check or a debit card.

Checks and cards were scheduled to go out on Friday, Aug. 7, so look for them to show up in your snail mail box this week.

Payment follow-up, record keeping: Regardless of how this corrected dependent payment amount is issued, recipients also will get another mailed notice letting them know the additional $500 EIP was issued.

As with the original letter from the White House, it’s an official tax document that you should keep with your other tax records.

And if you were due this previously-denied dependent EIP and haven’t or don’t soon receive it, you can use the IRS’ Get My Payment online search to check its status.

You also might find these items of interest:

Non-Filers tool-Economic Impact Payment; low-income, homeless qualify

New Spanish language version unveiled

 

Who can get more Economic Impact Payment money for children
IR-2020-83, April 28, 2020
WASHINGTON – The Internal Revenue Service today reminds low-income Americans to use the free, online tool Non-Filers: Enter Payment Info to quickly and easily register to receive their Economic Impact Payment.
The IRS has recently released a new Spanish language version of the tool to help even more Americans get their money quickly and easily.
“The IRS is working hard to find new ways for people who don’t have a filing requirement to receive their Economic Impact Payment,” said IRS Commissioner Chuck Rettig. “The Non-Filers tool is an easy way people can register for these payments. I appreciate the work of the Free File Alliance to quickly develop a Spanish-language version of this tool to reach additional people. This is part of a wider effort to reach underserved communities.”
The Non-Filers tool is designed for people with incomes typically below $24,400 for married couples or less than $12,200 for single people. This includes couples and individuals who are homeless. People can qualify, even if they do not work. Anyone claimed as a dependent by another taxpayer is not eligible.
Usually, married couples qualify to receive a $2,400 payment while others normally qualify to get $1,200. People with dependents under 17 can get up to an additional $500 for each child.
Just like people who file returns every year, those who do not have a filing requirement also generally qualify for an Economic Impact Payment. The IRS doesn’t know who many of these people are since they normally don’t file. So, the only way to get the Economic Impact Payment is to register with the IRS.
Here are some questions and answers on the Non-filers tool:
How do I use the Non-Filers: Enter Payment Info tool?
For those who don’t normally file a tax return, the process is simple and only takes a few minutes. First, visit IRS.gov, and look for “Non-Filers: Enter Payment Info Here.” Then provide basic information including Social Security number, name, address, and dependents.
The IRS will use this information to confirm eligibility, calculate and send an Economic Impact Payment. No tax will be due as a result of receiving the payment. Entering bank or financial account information will allow the IRS to quickly deposit the payment directly in a savings or checking account. Otherwise, the payment will be mailed, which will take longer to receive than by direct deposit.
Non-Filers: Enter Payment Info is secure, and the information entered will be safe. The tool is based on Free File Fillable Forms, part of the Free File Alliance’s offerings of free products on IRS.gov.
Who should use the Non-Filers tool?
This new tool is designed for people who did not file a tax return for 2018 or 2019 and are not required to do so under the law. Usually, this means couples with incomes below $24,400 and singles with incomes below $12,200 in 2019.
In addition, the Non-Filers tool can also help families receiving certain government benefits get additional payment amounts, based on their children. These include those receiving Supplemental Security Income (SSI) and Veterans Affairs beneficiaries who did not file returns for 2018 or 2019. These recipients need to make the updates for the children in the tool by May 5.
By taking this step, they will still be eligible to receive the separate payment of $500 per qualifying child. See the news release on IRS.gov for full details.
Who should NOT use the tool?
Anyone who already filed either a 2018 or 2019 return does not qualify to use this tool. Similarly, anyone who needs to file either a 2018 or 2019 return should not use this tool, but instead they should file their tax returns. This includes anyone who files a return to claim various tax benefits, such as the Earned Income Tax Credit for low-and moderate-income workers and working families.
The IRS also has seen instances where people required to file a Form 1040 for 2019 are trying to use the Non-Filers tool. The IRS urges people with a filing requirement to avoid complications later with the IRS, and file properly without using the Non-Filer tool.
Students and others who file a return only to receive a refund of withheld taxes should also not use this tool. In addition, students and others claimed as dependents on someone else’s tax return don’t qualify for an Economic Impact Payment and are not eligible to use the Non-Filers tool.
For more Information on Economic Impact Payments, including answers to frequently-asked questions and other resources, visit IRS.gov/coronavirus.

 

Millions of Americans have already received their Economic Impact Payments as the IRS continues to automatically send payments to more individuals. Eligible taxpayers who filed tax returns for either 2019 or 2018 will automatically receive their payment. The IRS will calculate the amount based on the income, filing status and dependent information on their most recently filed tax return.
While people who receive Supplemental Security Income and Veterans Affairs disability compensation and pension benefits will receive up to $1,200 automatically, some people in this group with children under 17 can receive up to an additional $500 for each qualifying child and need to act by May 5 to get it.
People in this group who have qualifying children under age 17 can claim the additional $500 per qualifying child and will need to provide their child’s information to the IRS using the Non-Filers: Enter Payment Info Here tool before May 5. Individuals who are married must also provide additional information using the Non-Filer tool 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.
A qualifying child is someone who:
  • Is the child, stepchild, eligible foster child, sibling, half sibling, step sibling or a descendant of the individual. A descendant includes children like a grandchild, niece or nephew.
  • Can be claimed as a dependent on the taxpayer’s tax return. For those who don’t usually file a tax return, include the child’s information in the Non-Filers: Enter Your Payment Info Here tool before May 5.
  • Was younger than 17 at the end of the 2019 tax year.
  • Is a U.S. citizen, U.S. national, or U.S. resident alien.
  • Has a valid Social Security number or an adoption taxpayer identification number.
Some people have older dependents. This includes people like an individual’s parent or a college student. Here are a couple things to know about dependents 17 or older:
  • Individuals with dependents 17 and older won’t get more money for those dependents.
  • The person claimed as a dependent on another person’s tax return isn’t eligible for the $1,200 Economic Impact Payment.
In addition to those receiving SSI and VA recipients who receive Compensation and Pension (C&P) benefit, payments are also automatic for people who don’t normally file a tax return but receive certain payments. These payments are:
  • Social Security benefits for retirement,
  • Social Security Disability insurance
  • Survivor benefits
  • Railroad Retirement benefits
More information:
Share this tip on social media — #IRSTaxTip: Who can get more Economic Impact Payment money for children. https://go.usa.gov/