Calorie Counter

You are currently viewing the message boards in:

US coronavirus stimulus payment may require you to have filed a tax return for 2018 or 2019

kshama2001kshama2001 Posts: 21,576Member Member Posts: 21,576Member Member
I have some friends and family who are not required to file tax returns and have let them know about this, and thought I would do the same for my MFP family. (You can still file a return even if you are not required to do so.)

Disclaimers:
  1. This is pending legislation, not yet law. It has passed the Senate and is expected to pass the House March 27, and then be signed into law.
  2. Reminder to not get political else this thread will be shut down.
  3. I am not a tax professional.

https://www.nytimes.com/article/coronavirus-stimulus-package-questions-answers.html

...What if I haven’t filed tax returns recently, would that affect my ability to receive a payment?

It could. File a return immediately, at least for 2018, according to the I.R.S. website. “Those without 2018 tax filings on record could potentially affect mailings of stimulus checks,” the site says.

If you’re worried about money that you owe that you cannot pay, the I.R.S. recommends consulting a tax professional who can help you request an alternative payment plan or some other resolution.

https://www.irs.gov/newsroom/irs-operations-during-covid-19-mission-critical-functions-continue

Non-filers: Haven't filed a tax return for a previous year? Take steps now.

The IRS encourages anyone with a tax filing obligation who hasn't filed a tax return for 2018 or a previous year to act now. – Pending legislation includes certain potential credits and rebates for those who have filed a return for 2018 and/or 2019. Those without 2018 tax filings on record could potentially affect mailings of stimulus checks. And more than 1 million people who haven't filed tax returns for Tax Year 2016 and are owed a refund still face an April 15, 2020, deadline to file their return. This deadline hasn't been extended. Current law requires the 2016 return to be filed by April 15, 2020.

Many non-filers should consider contacting a tax professional to consider various available options since the time to receive such refunds is limited by statute. Once delinquent returns have been filed, most taxpayers have the opportunity to resolve any outstanding liabilities by entering into an Installment Agreement or an Offer in Compromise with the IRS to obtain a "Fresh Start." See IRS.gov for further information.
edited March 26

Replies

  • DecadeDuchessDecadeDuchess Posts: 304Member Member Posts: 304Member Member
    Filing was a requirement, for the recession stimulus.
  • sgt1372sgt1372 Posts: 3,439Member Member Posts: 3,439Member Member
    Most people won't see any of this until May and it's such a small amount it really won't have any meaningful effect for most people.

    Also people like me who do not file online and have to be sent a physical ck will probably have to wait longer. I'm not going to hold my breath waiting for it

    The more important providion is the $600/wk increase in unemployment benefits for 2 or 3 months. 3M prople have already filed for unemployment because of the "stay at home" and business closure orders and MORE will be sure to still follow.

    The rest and bulk of the $ goes to bailing out and supporting certsin businesses, like the airlines, railroads and other duch concernd, w/o which our commercial infrastructure would surely fail but, even so, many small businesses, esp family owned restaurants, may never recover because t andhey are so heavily financed and run on such thin margins w/o much if any $ in reserve.
    edited March 26
  • TerythaTerytha Posts: 1,481Member, Premium Member Posts: 1,481Member, Premium Member
    Husband files US taxes every year.

    We are Canadian (he's dual.)

    I wonder if he'll get a check.
  • janejellyrolljanejellyroll Posts: 22,029Member Member Posts: 22,029Member Member
    Terytha wrote: »
    Husband files US taxes every year.

    We are Canadian (he's dual.)

    I wonder if he'll get a check.

    According to the articles I've read, legal residency is the requirement (not citizenship). If your husband is filing US taxes, then he would be eligible (to my understanding). But I am not sure how that is complicated by him living in another country.
    edited March 26
  • midlomel1971midlomel1971 Posts: 1,174Member Member Posts: 1,174Member Member
    It wouldn't be a requirement for 2019 since the deadline for filing isn't until April 14, 2020 for the 2019 tax year normally (and it's been extended.)
  • lemurcat2lemurcat2 Posts: 4,850Member Member Posts: 4,850Member Member
    It wouldn't be a requirement for 2019 since the deadline for filing isn't until April 14, 2020 for the 2019 tax year normally (and it's been extended.)

    Yes, but they base it on most recent tax form, either 2018 or 2019, so if you filed 2019 already they would use that.

    Forbes (in a piece updated today) says:

    "Treasury will advance your check based on your most recently filed tax return (2018 or 2019 tax return). If you haven’t filed a tax return, the bill allows Treasury to use the information on your 2019 Form SSA-1099, Social Security Benefit Statement, Form RRB-1099, Social Security Equivalent Benefit Statement....

    The check acts like a refund you get in advance. When you file your 2020 tax return, the IRS will compare your income numbers. If you should have gotten more than you did, you’ll get a refund. If the numbers on your 2020 tax return are different from your 2019 tax return, I don’t expect that you’ll have to pay it back (as the bill is written now). Don’t worry: most taxpayers should get just the right amount."

    https://www.forbes.com/sites/kellyphillipserb/2020/03/25/all-you-wanted-to-know-about-those-tax-stimulus-checks-but-were-afraid-to-ask/#79e06a6e1f9c
  • SuzySunshine99SuzySunshine99 Posts: 1,319Member Member Posts: 1,319Member Member
    What about people who have no income and therefore do not file?
    We support an adult family member and claim him as a dependent. We can only do that because he does not file a tax return. So he can't claim a stimulus check, and I assume we will not get the extra $500 for him, as everything I saw specifically said "$500 per child 16 and younger". Not per dependent.

    I guess they'd argue that since he has no income, he is not affected by the crisis. But we who are supporting him are, so I think that $500 should apply to EVERY dependent, no matter the age.
  • lemurcat2lemurcat2 Posts: 4,850Member Member Posts: 4,850Member Member
    Does he have any of the forms mentioned in my above post?
  • SuzySunshine99SuzySunshine99 Posts: 1,319Member Member Posts: 1,319Member Member
    lemurcat2 wrote: »
    Does he have any of the forms mentioned in my above post?

    It basically says for him to just file immediately...he can't file, because we already claimed him as a dependent so that would mess up our tax return, as I understand it anyways. I might be wrong, maybe he can file with no income and that would be okay? It's a long story, but he's not on disability or unemployment either. And doesn't collect social security.

    I have an accountant...guess I should just give him a call to clarify what we/he should do.
    edited March 26
  • lemurcat2lemurcat2 Posts: 4,850Member Member Posts: 4,850Member Member
    He can file and have no deductions/allowances. I filed in college when my parents could still claim me (and did) and just had 0 as my number. He wouldn't get the standard individual deduction but with no income it wouldn't matter.

    Obviously ask your accountant, not me, but I think that should be workable.
    edited March 27
  • lynn_glenmontlynn_glenmont Posts: 7,697Member Member Posts: 7,697Member Member
    What about people who have no income and therefore do not file?
    We support an adult family member and claim him as a dependent. We can only do that because he does not file a tax return. So he can't claim a stimulus check, and I assume we will not get the extra $500 for him, as everything I saw specifically said "$500 per child 16 and younger". Not per dependent.

    I guess they'd argue that since he has no income, he is not affected by the crisis. But we who are supporting him are, so I think that $500 should apply to EVERY dependent, no matter the age.

    Unless they have changed the rules very recently, this is not true. You get to claim someone as a dependent if you are paying for more than half of their support. It has zero to do with whether they have income (they could be living off of savings that they've decided to keep in a zero-interest account or under the mattress, although the latter would be difficult for the IRS to prove), much less whether they choose to file when they are not required to.

    It might be worth filing a 2019 tax return for him quickly. It should be pretty easy if he has no income.

    ETA: As I recall, there is a space on the 1040 for indicating if you can be claimed as a dependent by someone else (assuming that didn't disappear when they "shortened" the tax form for 2018), and you'd have to check that box on his return and do whatever else is required because you check it.
    edited March 27
  • midlomel1971midlomel1971 Posts: 1,174Member Member Posts: 1,174Member Member
    lemurcat2 wrote: »
    It wouldn't be a requirement for 2019 since the deadline for filing isn't until April 14, 2020 for the 2019 tax year normally (and it's been extended.)

    Yes, but they base it on most recent tax form, either 2018 or 2019, so if you filed 2019 already they would use that.

    Forbes (in a piece updated today) says:

    "Treasury will advance your check based on your most recently filed tax return (2018 or 2019 tax return). If you haven’t filed a tax return, the bill allows Treasury to use the information on your 2019 Form SSA-1099, Social Security Benefit Statement, Form RRB-1099, Social Security Equivalent Benefit Statement....

    The check acts like a refund you get in advance. When you file your 2020 tax return, the IRS will compare your income numbers. If you should have gotten more than you did, you’ll get a refund. If the numbers on your 2020 tax return are different from your 2019 tax return, I don’t expect that you’ll have to pay it back (as the bill is written now). Don’t worry: most taxpayers should get just the right amount."

    https://www.forbes.com/sites/kellyphillipserb/2020/03/25/all-you-wanted-to-know-about-those-tax-stimulus-checks-but-were-afraid-to-ask/#79e06a6e1f9c

    Good! I haven't filed our taxes yet for 2019. We usually owe so I'm in no rush now that the deadline has been extended to July.
    edited March 27
  • kshama2001kshama2001 Posts: 21,576Member Member Posts: 21,576Member Member
    lemurcat2 wrote: »
    It wouldn't be a requirement for 2019 since the deadline for filing isn't until April 14, 2020 for the 2019 tax year normally (and it's been extended.)

    Yes, but they base it on most recent tax form, either 2018 or 2019, so if you filed 2019 already they would use that.

    Forbes (in a piece updated today) says:

    "Treasury will advance your check based on your most recently filed tax return (2018 or 2019 tax return). If you haven’t filed a tax return, the bill allows Treasury to use the information on your 2019 Form SSA-1099, Social Security Benefit Statement, Form RRB-1099, Social Security Equivalent Benefit Statement....

    The check acts like a refund you get in advance. When you file your 2020 tax return, the IRS will compare your income numbers. If you should have gotten more than you did, you’ll get a refund. If the numbers on your 2020 tax return are different from your 2019 tax return, I don’t expect that you’ll have to pay it back (as the bill is written now). Don’t worry: most taxpayers should get just the right amount."

    https://www.forbes.com/sites/kellyphillipserb/2020/03/25/all-you-wanted-to-know-about-those-tax-stimulus-checks-but-were-afraid-to-ask/#79e06a6e1f9c

    Good to know, thanks!

    My brother is not required to file. I was going to file for him, but he does get a SSA-1099 so he should be all set. I will do a little more digging to confirm, and maybe file anyway on Sunday since it's going to rain.
  • lemurcat2lemurcat2 Posts: 4,850Member Member Posts: 4,850Member Member
    Yes, definitely double-check.
  • sdavis484sdavis484 Posts: 160Member Member Posts: 160Member Member
    I haven't read the past replies but I was reading an article just now that said this:

    For those that haven't filed a 2019 or 2018 tax return, the IRS would rely on information on file at the Social Security Administration, which keeps records on all Americans who have paid payroll taxes.

    https://www.cnn.com/2020/03/27/politics/stimulus-payments/index.html
Sign In or Register to comment.