3 Reasons Why Your Economic Impact Payment May be Different Than Expected
Economic Impact Payments, the stimulus unrolled by the Internal Revenue Service (IRS), have been successful for the most part. However, some taxpayers may get a different amount that they expected.
It’s worth remembering that under normal circumstances the amounts are allotted as follows:
- Up to $1,200 for eligible individuals
- Up to $2,400 for eligible married couples
- Up to $500 for each qualifying child for eligible individuals
Read on to discover three factors that may affect your payment and reduce these amounts.
You Haven’t Filed Your 2019 Tax Return
The amount of your Economic Impact Payment is based on your most recent tax return. So, if you haven’t filed a return for 2019, your payment will be based on information from 2018. Alternatively, it’s also possible that the IRS has not finished processing your 2019 return yet.
The Qualifying Child is 17 or Older
In order to qualify for the additional $500, the qualifying child must be under the age of 17 at the end of the year for the tax return on which the IRS bases the payment. If a dependent is 17 or older (including other relatives and college students), they don’t qualify for this additional amount.
Your Payment Was Offset by Past-Due Child Support
This is the only offset that can affect the amount of your payment, since federal law allows creditors to garnish a payment once it’s deposited into a bank account.
What to Do
If you receive an Economic Impact Payment for an amount that is smaller than expected, you can claim the additional credits you qualify for when you file your tax return for 2020.
It’s important to stay up to date with and other initiatives to navigate the current circumstances. Our knowledgeable experts at JT Tax Services will help you so you can take advantage of all the relief initiatives you are eligible for.
At JT Tax Services we have the experience, the knowledge and the drive to assist you. With our advice, you can file your taxes with the peace of mind that comes with knowing that you are limiting your liability while staying compliant with federal and state tax regulations.