Why some Americans will not receive financial assistance in connection with the coronavirus until 2021
Most US residents have either already received all the coronavirus payments due to them in the first round or will receive them by the end of August. But some, including those who amended their tax returns after federal payments began, could get extra money next year. Newsweek.
According to the independent Taxpayer Advocates Service (TAS), there are at least four scenarios in which a person could receive payment in 2021. In these cases, people must file their 2020 tax returns before receiving any additional money.
In making the first round of payments, the IRS based the payments on the most recent information it had. Considering that payments began to be sent in early April, and the deadline for filing tax returns was postponed to July 15, using the IRS tax return for 2018, rather than 2019, could lead to a reduction in the amount paid.
For example, if a person had a child in 2019, but the parent did not submit information about this at the time of sending payments, he did not receive the additional $ 500 that was provided for children under 17. According to TAS, the only way to get this money is to correct the difference when filing your 2020 tax return.
Another reason a person might have to wait until 2021 to receive the full payout is because the payout in the first round was based on income that was later changed.
Perhaps this is also the case if a person receives a certain type of social assistance, for example, a pension, but has been deemed unsuitable for payments in connection with the coronavirus, because someone else recorded him as a dependent.
Fourth Situation: A case where the IRS bases payments on an information report, Social Security data, or Veterans Benefits. If a person filed a 2019 tax return or used the Non-Filer tool after the support payments have been calculated, they can reconcile the differences in their 2020 tax return.
As people expect full compensation for the economic consequences of the CARES Act, lawmakers on Capitol Hill have reached an agreement on a new round of payments. Finance chief Steve Mnuchin said this is one of the few things Democrats and White House officials agree to include in a new economic aid package. The second round is likely to resemble the first payments, he said.
The CARES Act provides payments of $ 1200 to individuals with an income of $ 75 or less and $ 000 to individuals filing a joint income tax return of $ 2400 or less. An additional $ 150 has been allocated for each child under the age of 000, and this amount can be increased in the second round.
The GOP-backed Health, Economic Assistance, Civil Responsibility and Schools (HEALS) Act will keep payments at $ 500, but change eligibility to include dependents of all ages. Democrats added their Health and Economic Recovery Comprehensive Solutions (HEROES) Act, and Mnuchin told reporters on August 2 that both sides support the bailout plan.
"That's not the best answer," National Taxpayers Advocate Erin M. Collins wrote on her blog. "Congress has authorized payments to help the tens of millions of Americans who are financially distressed as a result of COVID-19, and many of these people need incentive payments now."
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