While this week’s topic won’t apply to most people, you may need this information, or know someone
who does, and considering the times, I wanted to make sure everyone is informed.
As I’m sure you’re aware, one of the main points of the Economic Stimulus legislation passed recently,
that gives most citizens a $1,200 payment, is just about to start sending out payments. The payments will
go to qualifying people that have filed a 2018 or 2019 tax return automatically. Also, if you haven’t filed
recently because you’re not required to file, but you receive Social Security or other direct government
payments, you will receive your money as well, direct deposited into the same account as your Social
Security payment.
If you aren’t required to file an income tax return because your income is below the fling threshold, but
you don’t collect Social Security, or one of the other government payments, the IRS now has a way for
you to give them your information so you can receive your stimulus payment. The IRS has launched a new
tool on their website, with a link that says “Non-Filers – Enter Payment Info Here”. It’s right on the IRS.gov
The process is simple. You provide basic information about yourself, including name, address, Social
Security number and dependent information. The IRS will use this information to confirm eligibility and
calculate and send a stimulus payment. This tool will not result in you owing any taxes. If you enter your
bank account information, your payment will be directly deposited into your account. Otherwise, the
payment will be mailed to you. This service is free, and the information is securely transmitted to the IRS.
It appears that you can use this tool if you’re married and only one spouse receives Social Security, in
order to get the payment for the spouse that doesn’t receive Social Security. Also, you should be able to
use this tool to receive the payment if you receive Social Security but also have a qualifying (under age
17) dependent payment of $500.
The IRS has said that these payments should begin arriving in bank accounts any day now. To help
everyone check on the status of their payments, the IRS is building a second new tool that is expected to
be available by April 17th that will allow people to track the status of their payment. This tool is also
supposed to have a feature that allows folks to enter their bank account information if their payment was
going to be sent by check, to allow it to be direct deposited. Direct deposit should significantly speed up
receipt of the payment.
On a different topic, the IRS clarified the relief being given for filing and paying taxes this past week. All
tax returns and payments that would have been due anytime between April 1 and July 15, 2020, are now
due on July 15th. There will be no penalties or interest charged on any payment that was due during this
time period as long as it is paid by July 15th
North Carolina has not been quite as clear. Currently, NC has extended the due date for all tax returns and
payments due on April 15, 2020 so that they are now due on July 15, 2020. However, unless the Legislature
acts to waive interest charges, any payment made after April 15th will be subject to interest until it is paid.
No penalties will be charged. The governor and legislative leaders have publicly stated that they intend to
vote to waive interest charges when they meet, currently scheduled to begin on April 28, 2020. You should
consider this when deciding whether to delay any tax payments that would be due on April 15th
Everyone at Faw & Associates hopes that you and your family are safe and well during this unprecedented
time. We hope that our leaders and medical experts find a way for life to return to normal just as soon as
possible. We are considered an essential business, so we have continued to work during the crisis, but we
keep our doors locked and limit contact with the public.