How to claim economic impact payments for new dependents
In April, the IRS began issuing Economic Impact Payments (EIP) to provide much-needed financial relief during the coronavirus pandemic.
If you don’t typically file taxes and have had a child in 2019 or 2020, you may be wondering how to receive the payment for each of your qualifying dependents. The process for qualifying, including when you receive your payment and how much you receive, depends on if your child was born in 2019 or 2020. Here’s what you need to know and how to claim your payment.
Economic Impact Payments for non-tax filers
While many Americans have already received this money as a result of the Coronavirus Aid, Relief, and Economic Security (CARES) Act, millions who don’t typically file taxes because of their income level may be unaware that they qualify for these stimulus payments and that they can receive additional economic relief for each of their dependents.
In order to receive an EIP this year, the IRS is requiring all non-tax filers to submit information on themselves and their dependents by October 15, 2020 . Non-tax filers, who also receive certain federal government benefits, are encouraged to provide their information on their qualifying dependents by September 30, 2020.
You’re eligible to receive an EIP if you haven’t filed your 2019 or 2018 tax returns for one of the following reasons:
- Your income is less than $12,200
- You’re married and together your combined income is less than $24,400
- You have no income
However, you must:
- Be a U.S. citizen or resident alien in most cases
- Not be claimed as a dependent on someone else’s tax return
- Have a valid Social Security Number (SSN)
What you’re eligible to receive:
- $1200 for single individuals
- $2400 for married couples
- $500 for each qualifying dependent under the age of 17
If you had a child in 2019
If you had a child in 2019 and don’t file taxes, you can claim your child, along with any other qualifying dependents, through the IRS Non-Filers: Enter Payment Info Here tool . You have until October 15, 2020, to submit basic information about yourself and your dependents.
If you received an EIP this year but believe you received an incorrect amount for your dependents, you will have the option to file your 2020 tax returns in order to receive a payment in 2021. If you don’t typically file taxes, there are free or low-cost tools available for filing your return .
If you had or are expecting a child in 2020
If you’ve had or are expecting to have a child this year, you’ll be able to receive an additional tax credit by filing your taxes in 2021. If you don’t typically file taxes, there are free or low-cost options for filing your taxes .
If you receive SSA, VA or railroad benefits and have dependent children
Some recipients of certain federal government benefits, who were not required to file income tax returns, will automatically receive their EIPs in the same way that they receive their benefits.
However, if you’re a beneficiary with dependents, the IRS urges you to use the non-filer tool through September 30, 2020 , to provide information on your qualifying children in order to receive supplemental payments. If you don’t submit your information before the deadline, you can file a 2020 tax return by the 2021 tax filing deadline in order to receive your payment next year.
An EIP can provide critical financial relief during these challenging times. Learn more about the COVID-19 economic stimulus relief payments and other ways to protect your finances during the coronavirus pandemic.
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