To help you wade through all the information about the COVID-19 stimulus payment, also known as the Economic Impact Payment, we’re offering tips to a few key things you should know:
- There’s a new scam around the stimulus payments. You may get a phone call or email saying they can get your Economic Impact Payment to you quicker by giving them your banking information and social security number. Never give this information to someone you don’t know. The IRS does NOT contact you for this information.
- Did you have to pay the IRS when filing your tax return in 2018 or 2019 or have your refund applied to the next year? If so, the IRS does NOT have your banking information to direct deposit your stimulus payment. Go to this site for more information: https://www.irs.gov/coronavirus/non-filers-enter-payment-info-here
- The stimulus payment is not taxable for the IRS and Illinois tax returns.
- For anyone who does not get the correct amount of Economic Impact Payment there will be a reconciliation feature on the 2020 tax return (filed in 2021).
- The $500 stimulus payment is for children under the age of 17. If your child turned 17 in either year they are ineligible for the payment.
For more information, contact the tax professionals at David Mills, CPA, LLC.