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The IRS has developed a free online tool which will allow Americans who don't usually file tax returns to register their details to claim Economic Impact Payments as part of the recently announced CARES Act.
According to the CARES Act, US taxpayers making $75,000 and below will receive a $1,200 check, while married couples making $150,000 and below will receive $2,400. $500 per dependant will also be available to those individuals and couples earning less than those figures.
The IRS explain that the new tool has been designed for several groups of Americans in particular, including those living overseas, who wouldn't normally need to file. Examples include:
- People who did not file a tax return for 2018 or 2019 and who don't receive Social Security retirement, disability (SSDI), or survivor benefits or Railroad Retirement benefits. People in this group who have qualifying children under age 17 may use the non-filers tool to claim the $500 payment per child.
- Those who haven't filed a 2018 or 2019 return because they are under the normal income limits for filing a tax return. This may include single filers who made under $12,200 and married couples making less than $24,400 in 2019.
- SSI recipients and those who receive veterans disability compensation, pension or survivor benefits from the Department of Veterans Affairs and who did not file a tax return for the 2018 or 2019 tax years. People in these groups can either use Non-Filers: Enter Payment Info option now or wait as the IRS continues to review automatic payment options to simplify delivery for these groups.
NB: If someone else has claimed you on their tax return, you will not be eligible to use the non-filers tool. This could apply, for example, to students.
Explaining the new tool, IRS Commissioner Chuck Rettig said that "People who don't have a return filing obligation can use this tool to give us basic information so they can receive their Economic Impact Payments as soon as possible". The IRS stresses that this tool is only available on the IRS.gov website. Automatic payments are due to begin next week for those who are eligible and have their details registered with the IRS, whilst a second tool is being developed to provide people with details of their payment which they said is coming next week.
For more details on the tool, and to use the tool, go to https://www.irs.gov/coronavirus/non-filers-enter-payment-info-here
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