All you have to know about Economic Impact Payment

Due to the sudden outbreak of COVID-19, most businesses and other income generation sources have got severely affected resulting in loss of income and unemployment of employees, contractors, daily-wage workers, etc. This could lead to hardship in maintaining their livelihood.

In order to help people during this tough situation, the IRS has taken various coronavirus relief measures. One among them is the issuance of ‘Economic Impact Payment’ which will be a major relief for individual taxpayers whose income is less than $75,000 (and $150,000 for Joint Filers).

What is ‘Economic Impact Payment’? This is a one-time payment announced by the IRS as part of Coronavirus relief measures. All the individual taxpayers who meet the prescribed criteria are eligible to receive this payment.

Amount of Payment and Eligibility Criteria – Individual (or Head of Household) Resident filers are eligible to receive $1,200 and ‘Married filing jointly’ filers are eligible to receive $2,400 if they are not a dependent of another taxpayer and have a work eligible Social Security Number with Adjusted Gross Income up to: $75,000 for Individuals (Single/MFS); $112,500 for Head of Household (HOH) filers and $150,000 for Married Filing Joint (MFJ) Returns. In addition, they are eligible for an additional $500 per qualifying child.

Taxpayers will receive a reduced payment if their AGI is between: $75,000 and $99,000 if their filing status was ‘Single’ or ‘Married Filing Separately’; $112,500 and $136,500 for ‘Head of Household’ and $150,000 and $198,000 if their filing status was ‘Married Filing Jointly’. Taxpayers whose AGI exceeds the maximum limit are not eligible to receive the Economic Impact payment.

Apart from these, eligible Retirees and recipients of Social Security, Railroad Retirement, Disability or Veterans' Benefits as well as Taxpayers who do not make enough money to normally have to file a tax return will receive a payment. This also includes those who have no income, as well as those whose income comes entirely from certain benefit programs such as Supplemental Security Income benefits.

Retirees who receive either Social Security retirement or Railroad Retirement benefits shall also receive payments automatically.

Those who do not have a valid Social Security Number or those who are a Non-Resident Alien or have filed Form 1040-NR or Form 1040-NR-EZ, Form 1040-PR or Form 1040-SS are not eligible to receive this Economic Impact Payment. Also, those who are claimed as a Dependent on someone else’s Return are also not eligible to receive this payment.

First Time Filers and Economic Impact Payment – Those who have already filed their TY2019 Resident Income Tax Returns or those who haven’t filed their TY2019 Tax Returns but had filed their TY2018 Tax Returns need not have to take any extra steps to get this Economic Impact Payment. The IRS shall make payment based on the information available in TY2019 / TY2018 Tax Returns already filed.

Those who have a requirement to file Tax Return for the first time in U.S. in TY2019 can file their Individual Income Tax Returns by July 15, 2020 (extended Due date) to get this payment but its highly advisable to file Returns as soon as possible so that you can get this payment at the earliest possible time along with Refund, if any, shown on your Tax Returns.

In case of any further queries on Economic Impact Payment, you may contact https://www.universalfinancials.com or write to contact@universalfinancials.com.

We are a firm specialized in offering US Individual and Corporate Tax Return filing Services, Accounting Services, Payroll Services and other ancillary services.

P.s.: This advertorial is only to make people aware of the Cornonavirus relief measure announced by the Internal Revenue Service.

Press release by: Indian Clicks, LLC