The Internal Revenue Service has processed about 159 million Economic Impact Payments (EIP), a stimulus geared to help taxpayers affected by the coronavirus outbreak.
However, some people are surprised to discover that the amount of their Economic Impact Payment is smaller than they expected. What to do in this situation?
Some Basic Information
It’s worth remembering that eligible taxpayers may get up to $1,200 for individuals, and up to $2,400 for those married filing jointly. Additionally, they may receive $500 for every qualifying child (you can use this chart to check how much you should receive).
As we have seen in a previous post, there are three basic reasons why your Economic Impact Payment may be smaller than expected:
- You haven’t filed your return for 2019, so your Economic Impact Payment is based on past information.
- The qualifying child is under 17 years of age (considering how old they are at the end of the year for the tax return on which the IRS bases the payment amount).
- Your payment was offset by past-due child support payments.
What to Do if the Amount of Your Economic Impact Payment Is Incorrect?
The IRS is not able at this moment to correct or issue additional payments. If you believe the amount of your Economic Impact Payment is incorrect, your option is claiming the additional amount when you file your 2020 tax return.
Keep the Notice 1444, Your Economic Impact Payment, you will receive regarding your Economic Stimulus Payment with your records. This notice is mailed to your last known mail address a couple of weeks after your payment is issued. You can refer to this notice when you file your 2020 tax return. This way you’ll be able to claim additional credits if you qualify for them.
Get Expert Advice
It’s important to know this and other initiatives to navigate the current circumstances. Our knowledgeable experts at JT Tax Services will help you 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.