Colleagues,

Here's what I know after this morning's briefing from the Center on Budget and Policy Priorities on today's National Low Income Housing Coalition call:

1. The proper IRS name for these payments to certain individuals and couples is Economic Impact Payments. It's important to remember this so you get the correct information when you search for it. The IRS website is: https://www.irs.gov/newsroom/economic-impact-payments-what-you-need-to-know . Be sure to check for updates.

2. Eligibility and guidance for receiving the Economic Impact Payment continues to change as advocates push back on early IRS decisions.

IRS: 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.

Note: Most high school seniors and college students will not be a "qualifying child" because the eligibility follows the federal Child Tax Credit.

This is from the Indianapolis Recorder:
Generally, the child must be your dependent, lived with you over six months of the tax year, you provided over half of their support, and were under 17 during the tax year in review. They must also be a U.S. Citizen, U.S. Resident or U.S. National. IRS Publication 972 gives more insight into Child Tax Credit Rules.

What about my college-age dependents? They qualify for EIC so aren’t they a qualifying child for this? No, unfortunately, they are not. Dependents 17-24 do not qualify for the child tax credit, so they will not qualify for the additional $500 payment, even if they were claimed on your return. Students between ages 18-24 who were not a dependent on another return and had income but were not required to file should file their tax return as soon as possible to receive the stimulus payment amount.

3. This probably won't change:

The Economic Impact Payment is income limited but also requires a Social Security Number. (There are a couple of rare exceptions for children that I don't understand.)

The Economic Impact Payment is $1200/person, $2400/married couple, $500/per dependent child up to a limit that I can't seem to find right now.

If you are someone else's dependent, you can't receive the money. That means most 17-24 year olds will not receive the money.

The process for most people is:

IF you filed a 2018 or 2019 IRS tax return and are income eligible, your Economic Impact Payment will either be directly deposited to the direct deposit information the IRS has on file for you or will be mailed to the address the IRS has for you.

IF you receive Social Security or Railroad Retirement and did not have to file a 2019 tax return, the IRS will send your Economic Impact Payment the same way they send your Social Security or Railroad Retirement checks.

IF you did not file federal taxes in 2019 and have dependent children, you need to file because the IRS doesn't know about your children who may be eligible for the $500 Economic Impact Payment.

The Economic Impact Payment program lasts through Dec. 31, 2020 but the IRS wants all "simple taxes" filed by Oct. 15. For those who must normally file, the new federal 2019 tax filing deadline is July 15, 2020.

The Economic Impact Payment is technically an advance on next year's tax returns BUT the IRS has said the money will NOT need to be paid back.

The first direct deposit checks will go out the end of this week. Then they will be issued in waves.

Paper checks will not be mailed before the end of the month and may not be received until late summer/early fall.

4. This might change but right now, if you receive SSI, SSDI, or Veterans benefits, you must file a 2019 tax return - even though you are not normally required to file, if you want this money, you have to do so. The IRS is working on a "simplified form."

5. The IRS is working on:

A simplified 2019 tax form for those not required to file

A platform for banking information

A way for people to check on the status of their check.

6. If you have no permanent address, you may use a trusted relative, friend, shelter, homeless program, agency where you receive State benefits.

7. If you have no bank account, you will receive a paper check OR you can open a bank account OR a debit account.

That means we need no fee/no minimum deposit; no credit check bank accounts. Some VITA sites and states have "friendly" debit cards. The IRS may offer debit cards.

8. People with Green Cards are eligible based on whether they have a Social Security Number. Mixed status families won't get the full amount - only those with Social Security numbers are eligible.

9. Domestic Violence survivors who have changed bank accounts or addresses will need to let the IRS know.

10. Maureen thinks we need A Serious Outreach program

The nonprofits, government agencies, and private sector firms who normally do financial counseling for low-income people, who normally provide federal tax assistance, and who normally work with people experiencing homelessness to figure out how to make this benefit available to every eligible person in Pierce County.

The Center on Budget and Policy Priorites is organizing and will have tools, FAQ's, etc. Their main link is www.cbpp.org and I'll send the organizing link when they have it.

That's what I know tonight.

Be kind. Be safe. And thank you for your work.

Maureen

MaureenHowardConsulting
maureenhowardconsulting@gmail.com

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