The Internal Revenue Service has officially reopened their registration to parents. This is part of the CARES Act stimulus program in which parents may receive $500 per child.
The $2.2 trillion stimulus package was passed in March to help offset the economic turmoil from the coronavirus pandemic. As part of this package, $1,200 was given to adults and $500 per child. These Economic Impact Payments were sent with information from 2018 and 2019 taxes, but the problem is that not all children were reported on these returns. This was due to the dependent exemption from the 2017 tax reform. Parents who don’t file tax returns also didn’t receive their share of the $500 per child.
To help the process of getting payments to all Americans, the IRS created a Non-Filers tool. This tool allows those who did not file taxes to claim their children. The problem was that many parents didn’t know about or by the time they found out about it, it was past the time to use the tool.
Many people complained they didn’t receive their payment, so the IRS has decided to reopen the Non-Filers tool and it will be open until September.
Starting August 15th, parents can use the Non-Filers tool on the IRS website to claim their children. This will prompt the system to release the $500 payment per child. The Non-Filers tool can only be used by those who did not file taxes during the 2018 and 2019 tax year due to:
• Social Security Retirement
• Survivor Benefits
• Disability Benefits
• Supplement Security Income
• Railroad Retirement benefits
• Veterans Affairs
• Pension Benefits
The IRS reports the payments will all be mailed by mid-October.
For those who have not filed their 2019 tax return, children can be claimed on the return vs. using the Non-Filers tool. The return will be sufficient in releasing the stimulus payment for each child.
The form of payment depends on how money is deposited from the tax return or benefits. For instance, if social security retirement benefits are directly deposited, the IRS will direct deposit the $500 per child. If payments are sent by check, the stimulus payment will also be sent by check.
The Non-Filers tool will no longer be available after October 15th, which means anyone who doesn’t submit the information by that time may not be able to receive their payment. It’s best to use the tool as soon as possible rather than waiting as to not risk losing it.
The IRS continues to struggle with getting all stimulus payments out to Americans. There was a glitch in the system in which many Americans in some states have yet to receive their payment. Those who have past due child support payments did not receive their stimulus payment. The IRS announced those people do not have to do anything and that they will be automatically sending out the EIP that was applied to the debt.
Spouses of deceased taxpayers received payments for the deceased. The IRS is in the process of cancelling them and reissuing payments not including the deceased.
While the IRS rushed to send out Americans their economic relief because of COVID-19, they have been faced with many issues. With time, these issues will be solved but Americans must stay vigilant on what to do.