Second Economic Impact Payment for Non-Filers

[JohnH]

Maybe this has been discussed somewhere?  I'm trying to figure out what people who have not received their second Economic Impact Payment AND who are not required to file an income tax return are supposed to do in order to claim the $600 per person.  Have received a couple of question on it and don't know how to respond.  Has anyone seen the answer to this? I'm assuming maybe they file a return anyhow, but haven't seen any guidance on it.  

 

[Lee B]

The President has instructed the Treasury Dept and the IRS to immediately expedite the payment to about 8 Million taxpayers,

who did not receive either the first and or the second EIP payment(s). It will be crazy trying to reconcile this activity against client questions

[JohnH]

So this may mean the Jan 15, 2021 date is irrelevant at this point, I suppose. 

 

[Abby Normal]

You can use the Get My Payment IRS page to see if the IRS sent it, but you can't see the amount.

Seems to me you're far better off to take the Recovery Rebate Credit and have the IRS adjust it down, than to not claim it and hope the IRS adjusts it up.

[Lee B]

4 minutes ago, Abby Normal said:

 

Seems to me you're far better off to take the Recovery Rebate Credit and have the IRS adjust it down, than to not claim it and hope the IRS adjusts it up.

When you do that it will be interesting to see how many months returns like this will be hung in"processing" status before before they are finalized?

[Abby Normal]

All credit returns get additional scrutiny. The IRS "hopes" to "start" sending refunds for returns with EIC and ACTC by the first week of March. People who prepare a lot of low income returns might want to turn their phones off for awhile.

[JohnH]

54 minutes ago, cbslee said:

When you do that it will be interesting to see how many months returns like this will be hung in"processing" status before before they are finalized?

Yes, this is the issue with respect to whether to claim the Recovery Rebate Credit or not claim it in ambiguous situations.  Will the IRS computers just adjust it, or will the returns just fall into a processing black hole?  Whatever happens, any delay will be the preparer's fault in the mind of the client.  

[Medlin Software, Dennis]

24 minutes ago, JohnH said:

will be the preparer's fault in the mind of the client

I was just told I was blackmailing a customer because the 941 form was changed.

[JohnH]

It’s very hard for a client to comprehend our explanation when the result of understanding it will mean they have to pay out more money.  

[Abby Normal]

This sounds pretty clear that if you were alive for one day in 2020, you're entitled to the 2nd EIP.

https://www.irs.gov/coronavirus/second-eip-faqs#Eligibility

Will a deceased individual receive the payment? (added January 5, 2021)

A payment won’t be issued to someone who has died before January 1, 2020. If you filed a joint return in 2019 and your spouse died before January 1, 2020, you won’t receive a $600 payment for your deceased spouse, but you’ll still be issued up to $600 for you and $600 for any qualifying children, if all other eligibility criteria are met. 

Regarding eligible individuals who died in 2020, the Recovery Rebate Credit may be claimed on line 30 of their 2020 tax return.  Please refer to the instructions for the 2020 Form 1040 for more information.

 

[Christian]

I had a question relative to this earlier. The client died on January 20,2020 received the $1200. As she had income insufficient to file a 2020 return. The question is do I file a return anyway and request a $600 refund. I think not.

[Abby Normal]

The IRS disagrees:

https://www.irs.gov/coronavirus/second-eip-faqs#Eligibility

If you died BEFORE 1/1/20 you don't get it.

[Christian]

Boy this is going to be really strange !!! Filing a return to get $600 for a deceased person. 

[JohnH]

Well, I can now confidently state that the Jan 15, 2021 date for the $600 per person second stimulus checks to be received is irrelevant.  Today, Feb 4, a client called to let me know they received their check in the mail.  This was a retiree, whose first stimulus payment (last year) was direct-deposited to their bank account.  

So now we know that there will likely be plenty of confusion over whether to claim the second stimulus payment on the 2020 tax return, especially for early filers.