$ 1,200 payment if no 2018 tax return filed ?

[RWG1950]

I've been reading the back and forth on the board & trying to make sense of what has appeared the printed media, but am still a little confused.
Will a person living at the subsistence level on social security only and not filing tax returns qualify for the $ 1,200 ?
Ifyes, would the person need to retro-file a 2018 return first or would the payment simply be automatically direct deposited without any type of filing ?

[rbynaker]

Ordering is: 2019 tax return if available, if not then 2018 tax return if available, if not then SSA-1099 if available, otherwise no advance (but a credit may be available when filing a 2020 income tax return.)

[RWG1950]

Couldn't find anything on the IRS website but have just read an article from 3-27-20 in the Washington Post on this.
WAPO seems to say that if a person has been receiving an SSA-1099, the payment will go to the recipient automatically even if they haven't been filing tax returns.

[New York Enrolled Agent]

From the bill signed into law:

‘‘(B) if the individual has not filed a tax return for such individual’s first taxable year beginning in 2018, use information with respect to such individual for calendar year 2019 provided in—

‘‘(i) Form SSA-1099, Social Security Benefit Statement, or
‘‘(ii) Form RRB-1099, Social Security Equivalent Benefit Statement.

[ATSMAN]

Ordering is: 2019 tax return if available, if not then 2018 tax return if available, if not then SSA-1099 if available, otherwise no advance (but a credit may be available when filing a 2020 income tax return.)

This opens up another can of issues for divorced taxpayers who switch dependents each year.

I have a client that has 2 children (one 18 and another 12 year old) and she switches them each year with her Ex. Guess what for 2019 she got to claim the 12 year old. So I am assuming she will get her $1200 plus $500 for the 12 year old and her Ex gets nothing for the 18 year old. BTW the 18 year old is not a college student and no income.

I see some fireworks there??

[TaxGuyBill]

Ex gets nothing for the 18 year old.

But if Ex claims the 12 year old in 2020, he should get the $500 stimulus on his tax return. So as the law reads, they both would receive $500.

[Dude]

This opens up another can of issues for divorced taxpayers who switch dependents each year.

I have a client that has 2 children (one 18 and another 12 year old) and she switches them each year with her Ex. Guess what for 2019 she got to claim the 12 year old. So I am assuming she will get her $1200 plus $500 for the 12 year old and her Ex gets nothing for the 18 year old. BTW the 18 year old is not a college student and no income.

I see some fireworks there??[/QUOTE]
.
Yeah, if the 2019 was already filed and the ex claimed the child he would get the $500 payment if 2019 has not been filed then your client would get the payment (assuming they claimed the child in 2018).

[ATSMAN]

This opens up another can of issues for divorced taxpayers who switch dependents each year.

I have a client that has 2 children (one 18 and another 12 year old) and she switches them each year with her Ex. Guess what for 2019 she got to claim the 12 year old. So I am assuming she will get her $1200 plus $500 for the 12 year old and her Ex gets nothing for the 18 year old. BTW the 18 year old is not a college student and no income.

I see some fireworks there??

.
Yeah, if the 2019 was already filed and the ex claimed the child he would get the $500 payment if 2019 has not been filed then your client would get the payment (assuming they claimed the child in 2018).
[/QUOTE]

Just to clarify. My client the ex wife already claimed the 12 yr old and 2019 was already filed early March. Not sure what her Ex husband did because I don't file for him.

[Burke]

But if Ex claims the 12 year old in 2020, he should get the $500 stimulus on his tax return. So as the law reads, they both would receive $500.

But she would have to pay hers back in 2020, as the child would not be on her return? Somewhere, someone said that overpayments would NOT have to be paid back? Is that true?

[TaxGuyBill]

But she would have to pay hers back in 2020, as the child would not be on her return? Somewhere, someone said that overpayments would NOT have to be paid back? Is that true?

No paybacks.

I suppose it is possible they could create some Regulations for a payback in this scenario (alternating dependents or other change in dependents). But the law itself say the credit is calculated on the 2020 tax return, and then subtract the Advance payment, but that result can't go below zero (meaning no payback).

[dtlee]

I am not disagreeing with anything posted in response to the question about nonfilers, but can someone tell me if the IRS is trying to change the rules (from IRS Newswire IR-2020-61):

I am not typically required to file a tax return. Can I still receive my payment?
Yes. People who typically do not file a tax return will need to file a simple tax return to receive an economic impact payment. Low-income taxpayers, senior citizens, Social Security recipients, some veterans and individuals with disabilities who are otherwise not required to file a tax return will not owe tax.

[rbynaker]

I am not disagreeing with anything posted in response to the question about nonfilers, but can someone tell me if the IRS is trying to change the rules (from IRS Newswire IR-2020-61):

Interesting. I agree with everything except "Social Security recipients" which was very specifically carved out in the law.

Not sure if I've mentioned it yet on this board, but I'm pretty convinced that in 200 years historians will look back and call this the Misinformation Era.

Rick

[dtlee]

Interesting. I agree with everything except "Social Security recipients" which was very specifically carved out in the law.

And very differently described in the newswire.

[Rapid Robert]

Is there a cut-off date for filing 2018/19 to get an advance payment? If payments are to be issued in 3 weeks (already a few days into that count), it doesn't seem like filing (or not filing) a return today will make any difference, as it usually takes at least two weeks to process efiled returns anyway.

What was the point of extending the due date to 7/15 if we now have to rush to file certain 2019 returns by some unknown cut-off date for receiving an advance payment?

[dtlee]

What's the point of telling seniors to stay home if they have to run out to file a tax return? This is the 21st century, it isn't supposed to make sense.