The IRS has announced:
1. The deadline to FILE and PAY federal income taxes is extended to July 15, 2020. This is due to the current situation with the COVID-19.
2. If you own money the due date for payments has been extended until July 15, 2020 which .means you will not be charge interest nor penalties for paying until that date.
Economic impact payments
Who is eligible for the economic impact payment?
a. Those who filed taxes previously and have a valid social security number.
b. Those who have file their taxes using a TIN number or tax ID DO NOT qualify.
c. For parents with a TIN number with kids with a valid SS number DO NOT qualify, the IRS only checks the SS of the parents filing the return.
Is this taxable income?
No, it is exempt from taxes.
What happens if you have not filed your 2019 taxes?
The IRS will use the information from 2018.
How much is the amount of the benefit?
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 (under 17 years of age).
Is there a limit of income to receive this benefit?
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 adjusted income limit.
Taxpayers with income exceeding the following amounts are not eligible for this benefit:
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.
How will the IRS know where to send my payment?
The economic impact payment will be deposited directly into the same banking account reflected on the return filed for 2019 or 2018.
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.
For those with disability payments or retirees who receive social security benefit who are not typically required to file a tax return don’t need take an action and will receive their payment directly to their bank account,”.
The IRS will use the information on the Form SSA-1099 and Form RRB-1099 to generate the Economic Impact Payments they will receive these payments as a direct deposit or by paper check, just as they would normally receive their benefits.