The second wave of help in connection with coronavirus: what to do in order not to lose money
Like most U.S. residents, you probably closely monitor work on Capitol Hill related to possible legislation on a new round of assistance in connection with coronavirus, writes CNBC. If the law is passed, you will need to take specific actions to get paid.
According to experts, you must file a tax return if you have not already done so, despite the fact that the IRS has extended the filing of federal income tax returns from April 15 to July 15 due to the unprecedented problems associated with coronavirus .
At the same time, the IRS worked to provide millions of lump sum payments of up to $ 1200 per person or $ 2400 per couple, plus $ 500 per child under the age of 17.
Now, lawmakers are ready to consider the possibility of a second round of payments - after the Democrats of the House of Representatives passed a bill that calls for this.
The new proposal also calls for checks of $ 1200 per person earning up to $ 75, or $ 000 for couples earning up to $ 2400. Payouts are reduced for people with incomes above these levels and will eventually stop completely: $ 150 for individuals and $ 000 for married couples.
But Democrats want to increase payments to $ 1200 dollars per family member, with a maximum of three payments per family. In addition, children 17 years of age and older and non-US citizens will also be eligible for first and second payments if the offer is accepted.
But these conditions can be changed depending on what legislators in the Senate agree to. Meanwhile, the White House made it clear that they are open to the second round of financial assistance.
It may take weeks for legislators to agree on conditions. Then checks will be sent out, which will also take a lot of time.
Tax experts said that this time frame gives Americans the opportunity to file tax returns, which may help them qualify for the second round of payments.
Payments Based on Past Tax Returns
As in the first round of federal assistance, the Democrats' proposal will take into account data from past tax returns.
If the government receives your 2019 declaration, the payment will be based on adjusted gross income according to this document. If you have not filed a declaration, the information for 2018 will be used.
Thus, if your income decreases in 2019, you can apply for larger payments based on an up-to-date declaration. If you had a baby in 2019, this change will also mean that you are eligible for extra money.
“If you have an event that could increase your potential financial aid and if a second round is decided, your 2019 return must be filed,” said Henry Grzez, lead manager for tax practice and ethics at the American Institute of Certified Public Accountants, or AICPA.
Admittedly, there are some delays in processing tax returns due to the coronavirus pandemic. In particular, processing paper declarations is slower. The IRS announced that they will begin to process revised reports electronically a little later this summer.
Of course, not all US residents are required to file tax returns, especially if they have virtually no income. For these people, the IRS has tool, which can be used to enter information in order to receive payments in connection with the coronavirus.
“If they don’t have information about you, it doesn’t mean that you are not eligible for payment,” Grzez said. "In the end, you will receive money, although not as quickly as others."
Tax refund may be waiting
Delay in filing a tax return can harm you not only in connection with the second wave of payments.
“Regardless of whether there is a second round of payments due to the coronavirus, you are probably waiting for a tax refund,” said Pete Sepp, president of the National Union of Taxpayers.
And the longer you hesitate in filing a tax return, the more time will pass before you receive your refund. Meanwhile, the refund amount may be greater than the second payment in connection with the coronavirus.
“People leave money in the hands of the government, which they have to return to their pockets,” Sepp said.
Your taxes can be the key to a higher salary.
By filling out a tax return, you will be able to assess how much is deducted from each of your salaries. By reducing this amount, you can increase the size of your salary, while reducing the expected profit at the end of the tax year.
“This will allow you to get more money in a much shorter period,” said Grzez. "You can provide your personal incentive by doing this."
Of course, you will want to take into account any additional payment, such as investment income, which can increase your IRS debt at the end of the year.
As ForumDaily wrote earlier:
- Coronavirus Federal Payments will not be taxed.
- If the government does not have your direct bank account number, some will wait for mailed checks by September.
- According to the adopted package of financial assistance, there are categories of people who, despite the matching income level, will not receive assistance. Their list is here.
- The topic of government support is actively used by scammers. The schemes used by them and ways to protect themselves from them - link.
- April 15th IRS launches online tool, which will help you enter information about your account, track the payment and receive money as soon as possible. For details on how to use it, read here.
- After the start of payments, many reported: when checking the status of payment online, they found that the money was sent to wrong accounts, including dead.
- Most Americans will receive federal government aid payments for coronavirus automatically, but there are several reasons payment may be delayed.
- Mexican-American Legal Defense and Education Foundation sued the federal government due to denial of coronavirus assistance to US citizens married to immigrants without social security numbers.
- Americans along with a federal aid check from the government receive by mail and letter from US President Donald Trump. It begins with the greeting, “My brother is American ...”. But not everyone liked this idea.
- Why are you still did not receive financial assistance due to coronavirus: 9 probable reasons.
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