IRS Updates — 04/10/20 3:01 PM
To help millions of people, the Treasury Department and the Internal Revenue Service today launched a new web tool allowing quick registration for Economic Impact Payments for those who don’t normally file a tax return.
The non-filer tool, developed in partnership between the IRS and the Free File Alliance, provides a free and easy option designed for people who don’t have a return filing obligation, including those with too little income to file. The feature is available only on IRS.gov, and users should look for Non-filers: Enter Payment Info Here to take them directly to the tool.
“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,” said IRS Commissioner Chuck Rettig. “The IRS and Free File Alliance have been working around the clock to deliver this new tool to help people.”
The IRS reminds taxpayers that Economic Impact Payments will be distributed automatically to most people starting next week. Eligible taxpayers who filed tax returns for 2019 or 2018 will receive the payments automatically. Automatic payments will also go in the near future to those receiving Social Security retirement or disability benefits and Railroad Retirement benefits.
How do I use the Non-Filers: Enter Payment Info tool?
For those who don’t normally file a tax return, the process is simple and only takes a few minutes to complete. First, visit IRS.gov, and look for “Non-Filers: Enter Payment Info Here.” Then provide basic information including Social Security number, name, address, and dependents. The IRS will use this information to confirm eligibility and calculate and send an Economic Impact Payment. Using the tool to get your payment will not result in any taxes being owed. Entering bank or financial account information will allow the IRS to deposit your payment directly in your account. Otherwise, your payment will be mailed to you.
“Non-Filers: Enter Payment Info” is secure, and the information entered will be safe. The tool is based on Free File Fillable Forms, part of the Free File Alliance’s offerings of free products on IRS.gov.
Who should use the Non-Filers tool?
This new tool is designed for people who did not file a tax return for 2018 or 2019 and who don’t receive Social Security retirement or disability benefits or Railroad Retirement benefits. Others, who should consider the Non-Filers tool as an option, include:
Lower income: Among those who could use Non-Filers: Enter Payment Info tool are 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.
Veterans’ beneficiaries and Supplemental Security Income (SSI) recipients: The IRS continues to explore ways to see if Economic Impact Payments can be made automatically to 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.
Social Security, SSDI and Railroad Retirement beneficiaries with qualifying dependents: These groups will automatically receive $1,200 Economic Impact Payments. People in this group who have qualifying children under age 17 may use Non-Filers: Enter Payment Info to claim the $500 payment per child.
Students and others: If someone else claimed you on their tax return, you will not be eligible for the Economic Impact Payment or using the Non-Filer tool.
Coming next week: Automatic payments begin
Eligible taxpayers who filed tax returns for either 2019 or 2018, and chose direct deposit of their refund will automatically receive an Economic Impact Payment of up to $1,200 for individuals or $2,400 for married couples and $500 for each qualifying child. Individuals who receive Social Security retirement or disability benefits, SSDI or who receive Railroad Retirement benefits but did not file a return for 2019 or 2018 will automatically receive a payment in the near future.
Coming next week: Get My Payment shows Economic Impact Payment date, helps with direct deposit
To help everyone check on the status of their payments, the IRS is building a second new tool expected to be available for use by April 17. Get My Payment will provide people with the status of their payment, including the date their payment is scheduled to be deposited into their bank account or mailed to them.
An additional feature on Get My Payment will allow eligible people a chance to provide their bank account information so they can receive their payment more quickly rather than waiting for a paper check. This feature will be unavailable if the Economic Impact Payment has already been scheduled for delivery.
More Information on Economic Impact Payments
The IRS will post additional updates on IRS.gov/coronavirus on these and other issues.
This morning, U.S. Treasury Secretary Steven Mnuchin announced via Twitter: “At @realDonaldTrump’s direction, we are moving Tax Day from April 15 to July 15. All taxpayers and businesses will have this additional time to file and make payments without interest or penalties.”
We expect the IRS will issue official guidance today or Monday, officially extending the deadline.
Here are some changes made by TCJA. IRS also made a few revisions to help protect taxpayers.
State and local tax (SALT) deductions are now limited to $5,000 for a married person filing a separate return and $10,000 for all other filers. This limit applies to the 2018 to 2025 tax periods. Click to learn which taxpayers are impacted by the SALT limit.
Special Tax Breaks for U.S. Armed Forces
Key tax benefits are available to members of the military including combat pay, foreign earned income exclusion, filing deadline postponement, automatic extensions and earned income tax credit; just to start. Dependent care assistance programs available for military personnel, are also excludable and not included in the military member’s income. Click to get more benefits.
To provide greater security and improve transparency, IRS now requires an ITIN or SSN from individuals named as “responsible party” on Form S-4, Application for Employer Identification Number. This revision is effective May 13, 2019. Only government entities are exempt from the responsible party requirement, to include military and state national guards. Click to get the entire news release.
Penalty Relief Threshold Lowered to 80 Percent
IRS expands penalty waiver for taxpayers whose withholding and estimated tax payments fell short in 2018. The usual threshold is 90 percent to avoid a penalty. An 85 percent threshold was announced Jan 16. “Taxpayers who have already filed for tax year 2018 but qualify for this expanded relief may claim a refund by filing Form 843, Claim for Refund and Request for Abatement and include the statement “80% Waiver of estimated tax penalty” on Line 7. This form cannot be filed electronically.” Click to learn more.
A taxpayer affected by disaster could be any individual whose principal residence is located in a disaster area; the spouse of an affected taxpayer; or any business or sole priorietor whose principal place of business is located in a disaster area. Also included is any individual, business or sole proprietor not located in a covered disaster area, but whose records necessary to meet an IRS deadline are located in the disaster area.
There are four (4) types of disaster relief:
• Administrative relief is the granting of additional time to file tax returns, pay taxes and perform other time sensitive tasks. You may also be able to get late filing and payment penalties waived or abated.
• Tax relief is claiming casualty losses on your tax return.
• For Safe harbor provisions see your tax professional.
• Election to claim disaster losses on a prior year tax return.
Taxpayers may elect to deduct a casualty loss that occurred in the current tax year on their preceding year tax return if the casualty loss occurred in a federally declared disaster area determined to warrant federal assistance.
The election to claim disaster losses on a preceding year tax return can be made up to six months after the due date of the taxpayer’s federal income tax return for the disaster year (without regard to any extension of time to file.) Effective for tax returns filed after October 13, 2016. Click to learn more about disaster relief.
Enrolled Agent Week is February 4-10, 2019 in the State of South Carolina.
Those taxpayers who usually file early in the year and have all of the needed documentation, there is no need to wait to file. You should file when you’re ready to submit a complete and accurate tax return.
The U.S. tax system is pay-as-you-go. Taxpayers are required, by law, to pay most of their tax obligation during the year rather than at the end of the year. This can be done by either having tax withheld from paychecks or pension payments, or by making estimated tax payments.
The filing deadline to submit 2018 tax returns is Monday, April 15, 2019 for most taxpayers. Because of the Patriots’ Day holiday on April 15 in Maine and Massachusetts and the Emancipation Day holiday on April 16 in the District of Columbia, taxpayers who live in Maine or Massachusetts have until April 17, 2019 to file their returns.
The IRS announced January 16, 2019, that it is waiving the estimated tax penalty for many taxpayers who’s 2018 federal income tax withholding and estimated tax payments fell short of their total tax liability for the year. This relief is designed to help taxpayers who were unable to properly adjust their withholding and estimated tax payments to reflect an array of changes under the Tax Cuts and Jobs Act (TCJA), the far-reaching tax reform law enacted in December 2017. Taxpayers are urged to check their withholding again this year to make sure they are having the right amount of tax withheld. [ Withholding Calculator ] Continue reading
Did you know that you can deposit money into an IRA for retirement through a:
- bank or other financial institution?
- life insurance company?
- mutual fund?
Contributions can be either tax-deductible, matched by an employer, controlled by the employee or tax-free. Distributions can be voluntary or mandatory, and funds can be rolled-over if changing employment. Click here to learn more.
More than 14 million taxpayers filed for an extension in 2018 and, although Oct. 15 is the last day for most people to file, some may have more time. They include:
- Members of the military and others serving in combat zone localities still have more time. They typically have until at least 180 days after they leave the combat zone to both file returns and pay any taxes due.
- Taxpayers in several disaster area localities who already had valid extensions now have more time to file. Currently, taxpayers in parts of California, North Carolina, South Carolina and Texas qualify for this relief. For details, see the disaster relief page on IRS.gov. However, like other extension filers, these taxpayers were required to pay what they owed by April 18, which was this year’s filing deadline for 2017 tax returns.
Click here for information about how long to keep tax return copies, why you should adjust your paycheck withholding, how to pay balance(s) due and more.
Did you know that your filing status could change during the year? If this happens just remember that your marital status on Dec. 31 is your status for the whole year.
Sometimes more than one filing status may apply to taxpayers. When that happens, taxpayers should choose the one that allows them to pay the least amount of tax.
Claiming the wrong filing status can affect the amount of tax you owe for the year. Learn about the five filing statuses and a description of who claims them by clicking here.