@ March 12, 2021:

Third Stimulus Payment Update

• the IRS will use direct deposit (DD) information from 2020 and 2019 tax returns, with 2020 taking precedent if available.
• If DD info is not present on tax returns, the IRS will likely use DD info entered by the taxpayer into the Get My Payment (GMP) tool.
• If no DD info is available, the taxpayer will receive a check or debit card.

IRS begins delivering third round of Economic Impact Payments to Americans

• “Even though the tax season is in full swing, IRS employees again worked around the clock to quickly deliver help to millions of Americans struggling to cope with this historic pandemic,” said IRS Commissioner Chuck Rettig.
• “The payments will be delivered automatically to taxpayers even as the IRS continues delivering regular tax refunds.
• We urge people to visit IRS.gov for the latest details on the stimulus payments, other new tax law provisions and tax season updates.

Highlights of the third round of Economic Impact Payments; IRS will automatically calculate amounts

• In general, most people will get $1,400 for themselves and $1,400 for each of their qualifying dependents claimed on their tax return.
• As with the first two Economic Impact Payments in 2020, most Americans will receive their money without having to take any action.
• Some Americans may see the direct deposit payments as pending or as provisional payments in their accounts before the official payment date of March 17.
• Because these payments are automatic for most eligible people, contacting either financial institutions, Your Paid Tax Preparer  or the IRS on payment timing will not speed up their arrival.
• Social Security and other federal beneficiaries will generally receive this third payment the same way as their regular benefits.
• Under the new law, an EIP3 cannot be offset to pay various past-due federal debts or back taxes.
• The IRS reminds taxpayers that the income levels in this new round of stimulus payments have changed.
• This means that some people won’t be eligible for the third payment even if they received a first or second Economic Impact Payment or claimed a 2020 Recovery Rebate Credit.
• Payments will begin to be reduced for individuals making $75,000 or above in Adjusted Gross Income ($150,000 for married filing jointly.)
• The reduced payments end at $80,000 for individuals ($160,000); people above these levels are ineligible for a payment.
• The third stimulus payment will be larger for most people.
• Most families will get $1,400 per person, including all dependents claimed on their tax return.
• Typically, this means a single person with no dependents will get $1,400, while a family of four (married couple with two dependents) will get $5,600.
• Unlike the first two payments, the third stimulus payment is not restricted to children under 17.
• Eligible families will get a payment based on all of their qualifying dependents claimed on their return, including older relatives like college students, adults with disabilities, parents and grandparents.
• More information is available on IRS.gov.

Taxpayers with Bank Products

• IRS has updated their process to send these payments directly to the taxpayer’s personal bank account, also referred to as the Ultimate Bank Account (UBA), if they received an RT-Direct Deposit on their 2020 or 2019 tax return.
• While there will likely be some exceptions, we’re hopeful most of the payments will be routed in this manner.
• If the taxpayer received their RT with a paper check, they will receive a paper check from the IRS.

Taxpayers with Bank Products

• The GMP tool will not be updated with EIPs data before Monday, March 15.
• Also, we don’t believe the IRS will be collecting any additional DD info through the GMP tool for EIP3.
• Payments received in this third round of stimulus do not impact 2020 tax returns.
• For more information, look for an IRS Press Release later today:

• limits based on adjusted gross income (AGI) ranges.
• This means that taxpayers making less than the minimum threshold could get the full stimulus check, while those earning above it get reduced payments until they are fully phased out at higher incomes.
• Singles phase out at AGIs between $75,000 and $80,000.
• Heads of household phase out at AGIs between $112,500 and 120,000.
• Couples phase out at AGIs between $150,000 and $160,000.
• The new stimulus plan expands eligibility to adult dependents, including college students, elderly relatives and disabled adults.
• The IRS does not consider stimulus checks to be taxable income.
• You should also note, that if you owe taxes, you could still qualify to get a stimulus payment because the IRS does not use it to offset federal or state tax debts like it normally does with tax refunds.
• For the third round of stimulus checks, the new stimulus plan also does not deduct overdue child support from eligible recipients. You should keep in mind, however, that the IRS intercepted or reduced payment from the first round of stimulus checks for past-due child support.
• Qualifying taxpayers who did not get the full amounts of their stimulus payments could claim a recovery rebate credit to increase their tax refund or lower their tax bill.
• The IRS uses 2019 0r 2020 tax returns to determine eligibility for your third stimulus check. But, if your income fell in the 2020 tax year, you may want to file your tax return earlier to qualify for a third stimulus check.
• You or your spouse or your child(ren) must have a Social Security Number (SSN) or
• If one spouse doesn’t have an SSN, the spouse with an SSN and qualifying children with an SSN or Adoption Taxpayer Identification Number (ATIN) can get stimulus.
• Military Family: If one spouse doesn’t have an SSN, both spouses can receive the stimulus (including the spouse without an SSN).

For all your Tax Service

visit the Contact Jovetee

**********

@ January 6, 2021: Second Economic Impact Payments

Ensure to Read all updates!!!!

Now, so many people have their stimulus checks while some don’t. Here are a few updates that can help if you still have not received yours!!!

First,  check the Status of Your Economic Impact Payments Click Here

IRS Statement about Second Economic Impact Payments 

Dated: January 5, 2021

The IRS updated the Get My Payment tool with information related to the second round of Economic Impact Payments. There is currently heavy demand on the tool given the large number of payments going out and people using the tool.

While the IRS has been able to deliver the second round of Economic Impact Payments in record time, we understand there are many questions and we appreciate everyone’s patience during this period.

Here are answers to some common questions coming up related to Get My Payment and the second round of Economic Impact Payments.

I’m having trouble accessing the Get My Payment tool.

Some people visiting the site may get a “please wait” or error message due to the high volumes coming in. The “please wait” message is a normal part of the site’s operation. We encourage people to check back later. Also, there is a limit to the number of times people can access Get My Payment each day. When people reach the maximum number of accesses, Get My Payment will inform them they will need to check back the following day.

I didn’t receive a direct deposit yet. Will I get a second Economic Impact Payment?

Maybe. IRS updated Get My Payment (GMP) for individuals who are receiving the second Economic Impact Payment on January 5, 2021. If you checked GMP on or after January 5 then:

• If GMP reflects a direct deposit date and partial account information, then your payment is deposited there.
• If GMP reflects a date your payment was mailed, it may take up to 3 – 4 weeks for you to receive the payment. Watch your mail carefully for a check or debit card. (See the FAQ for EIP Card)
• If GMP shows “Payment Status #2 – Not Available,” then you will not receive a second Economic Impact Payment and instead you need to claim the Recovery Rebate Credit on your 2020 Tax Return.

Because of the speed at which the law required the IRS to issue the second round of Economic Impact Payments, some payments may have been sent to an account that may be closed or, is or no longer active, or unfamiliar. By law, the financial institution must return the payment to the IRS; they cannot hold and issue the payment to an individual when the account is no longer active. If Get My Payment shows “Payment Status #2 – Not Available” you will not receive a second EIP.

The IRS advises people that if they don’t receive their Economic Impact Payment, they should file their 2020 tax return electronically and claim the Recovery Rebate Credit on their tax return to get their payment and any refund as quickly as possible.

What if I have a different bank account than I had on my 2019 tax return? What should I do?

If the second Economic Impact Payment was sent to an account that is closed or is no longer active the financial institution must , by law, return the payment to the IRS, they cannot hold and issue the payment to an individual when the account is no longer active. The IRS advises people that if they don’t receive the full Economic Impact Payment they should file their 2020 tax return electronically and claim the Recovery Rebate Credit on their tax return to get their payment and any refund as quickly as possible.

Why can’t the IRS reissue the second Economic Impact Payment to me?

The IRS is working hard to deliver the second Economic Impact Payment quickly, as required by law, while still preparing for the upcoming 2021 tax filing season. Due to the compressed timeline, the IRS is unable to reissue and mail checks and instead encourages people to file their 2020 tax return electronically to claim and receive the Recovery Rebate Credit quickly as possible.

Can I call the IRS, software company or bank to resolve issues with my Economic Impact Payment?

People should visit IRS.gov for the most current information on the second round of Economic Impact Payments rather than calling the agency or their financial institutions or tax software providers. IRS phone assistors do not have additional information beyond what’s available on IRS.gov.

What about if I have ITIN? 

Immigrants in the country illegally, as well as some other immigrants who are legally present in the U.S. but are not eligible for a Social Security number, use what is called an Individual Tax Identification Number, or ITIN, to pay taxes. Under the CARES Act, not only were people using an ITIN to file taxes ineligible for stimulus payments, but anyone filing jointly with someone using an ITIN was also ineligible for direct checks – meaning that, for example, a U.S. citizen married to an immigrant using an ITIN didn’t receive any money for themselves or their children. The act made an exception for military families.

@ Dec. 21, 2020: People in mixed-status families sued the government for excluding them from stimulus payments. Democrats and advocates pushed for the next major relief package to include relief for all people who pay taxes, including immigrants in the country illegally who use ITINs, to receive checks, despite opposition from Republicans. It’s not yet clear if immigrants using ITINs to pay taxes will be eligible for this new round of checks or if only U.S. citizens or legal residents will be eligible, regardless of who they filed taxes with.

…Updates

@ January 6, 2021:  IRS again depositing stimulus payments in wrong bank accounts

The Internal Revenue Service is once again depositing the latest round of Economic Impact Payments in the wrong bank accounts in a replay of problems experienced last year by many taxpayers.

The problem stems in part from tax preparation companies that used temporary bank accounts in previous years where taxpayers could receive their tax refunds, while the tax prep companies took a portion of the refund for payment. The temporary bank accounts were later closed, but the IRS relied on the old information it had on file for those bank accounts when it began making direct deposits this week of the latest round of stimulus payments.

The banks have to send back the deposits to the IRS, and taxpayers will have to update their information with the IRS directly. However, some are already complaining about the problems in receiving the much-needed payments in the midst of the economic crisis from the pandemic. They have been checking the IRS’s online Get My Payment tool and finding that the deposits went to bank accounts that don’t match their own. The IRS advises taxpayers that they may need to wait until later this year to claim a tax credit for the missing stimulus payment, but for those who are desperate for funds to pay their bills as soon as possible, that will be a long wait “Because of the speed at which the law required the IRS to issue the second round of Economic Impact Payments, some payments may have been sent to an account that may be closed, or is no longer active, or unfamiliar,” said the IRS on Tuesday. “By law, the financial institution must return the payment to the IRS; they cannot hold and issue the payment to an individual when the account is no longer active. If Get My Payment shows ‘Payment Status #2 – Not Available’ you will not receive a second EIP. The IRS advises people that if they don’t receive their Economic Impact Payment, they should file their 2020 tax return electronically and claim the Recovery Rebate Credit on their tax return to get their payment and any refund as quickly as possible.”

Providing some information about how to deal with the problem.

“If you purchased Refund Transfer with last year’s taxes, the IRS Get My Payment tool may be reflecting that account number, “Simply check your tax return to see if it matches the account number displayed in the tool. If it matches, your stimulus payment will be sent from this account the same way you received your tax refund — deposited to a bank account or mailed as a check. Direct deposits should be received by end of day, Wednesday, Jan. 6.”

However,  for some customers, the second stimulus payment may have been sent back to the IRS and they will need to claim the tax credit on their tax returns later this year. “All financial institutions are required to return second stimulus payments in certain circumstances, such as when they are sent to a closed account. In these cases, payments were returned to the IRS and a check is likely to be sent by the IRS,”  “This affected less than 1% of second stimulus payments processed. Changes can be reconciled at tax time. For those who did not receive the first stimulus payment, believe they did not receive their full stimulus payment amount, or had changes in their circumstances, such as the birth of a baby, a Recovery Rebate Credit can be claimed when 2020 taxes are filed this year. Save any letters received from the IRS about stimulus checks and present them when you work with Us to file your 2020 tax return.”

@ January 7, 2021: Economic Impact Payments (EIPs) by prepaid debit card.

WASHINGTON – Starting this week, the Treasury Department and the Internal Revenue Service are sending approximately 8 million second Economic Impact Payments (EIPs) by prepaid debit card.

These EIP Cards follow the millions of payments already made by direct deposit and the ongoing mailing of paper checks that are delivering the second round of Economic Impact Payments as rapidly as possible.

For those who don’t receive a direct deposit, they should watch their mail for either a paper check or a prepaid debit card. To speed delivery of the payments to reach as many people as soon as possible the Treasury’s Bureau of Fiscal Service is sending payments out by prepaid debit card.

IRS and Treasury urge eligible people who don’t receive a direct deposit to watch their mail carefully during this period. The prepaid debit card, called the Economic Impact Payment card, is sponsored by the Bureau of the Fiscal Service and is issued by Treasury’s financial agent, MetaBank®, N.A. The IRS does not determine who receives a prepaid debit card.

****************************************

Where can I get more information?

We will provide you with more updates as they become available, visit our website Jovetee Conzults, LLC

For Accounting, Audit, Tax and Business Consulting, Contact Jovetee Conzults, LLC