The eligible individuals of the United States of America will receive Economic Impact Payments of about $ 1200 for the individuals or up to $ 2400 for the married couples, under the Coronavirus Aid Relief and Economic Security (CARES) Act. For each qualifying child, the parent will also receive $ 500 for each child. To receive this Economic Impact Payments, the Internal Revenue Service IRS has announced two procedures.
Procedures to receive the Economic Impact Payments
The first procedure to receive the payment is a simplified one as the eligible individuals can only file the federal income tax return to get economic impact payment. Those individuals who are eligible to receive the payment can use the Non-filers Payment Info tool to get the payment quicker than the paperwork. The instructions contain complete guidance and require the taxpayer to enter the information of the dependents if any. Hence, an additional $ 500 payment is provided. Here, the taxpayers may also file the 2019 paper return to claim the pending payments instead of e-filing.
The second procedure is meant for the taxpayers whose gross income is zero adjusted (AGI- Adjusted Gross Income). This is also for the persons who use tax preparation software; else more information needs to be provided in filing local or state tax returns. A zero AGI tax filer has zero adjusted gross income for the tax year 2019 and also not filed the 2019 federal tax return.
A zero AGI tax filer should have a Social Security Number (SSN) that shows the validity of their employment. In case of a joint return, an individual needs an SSN with valid employment when any one of the joint return tax filers was a U.S armed forces member in 2019.
Even though the individual has no AGI, a zero AGI tax filer needs to enter $ 1 as taxable interest, gross income, and AGI on return.
When do these procedures need to be done?
These alternative procedures should be done before 15th October 2020. Hence, the IRS can process the payment and settle it before the end of 2020. While following the procedure, make sure to add the signature under the penalties of perjury.