Kemcents: Sept 30 deadline to receive $500 economic impact payment for certain federal benefit recipients

In order to receive the Economic Income Payments (EIP) for qualified dependents, federal benefit recipients must act now.  The Internal Revenue Service (IRS) has reopened the non-filer portal from August 15 to September 30 for individuals who received certain federal benefits and have yet to receive the EIP for qualified dependents.

The CARES Act allowed individuals to receive EIP payments of $1,200 for single individuals and $2,400 for married couples. Those who have qualified dependents are eligible to receive an additional amount of $500 per dependent.

The IRS requires the dependent to be under 17 and qualified as a dependent on the taxpayer’s return. Moreover, the dependent must also be a US citizen and have a valid identification number.

Certain non-filers not required to file should act

While the IRS was able to obtain dependent information from taxpayers who filed prior tax returns, this was not the case for those who received certain federal benefits and were not required to file a return. These individuals include those who receive certain federal benefits such as Social Security, VA benefits, SSI, or Railroad benefits and are not required to file a return.  For individuals who fall within this category, they are eligible to utilize the non-filer portal to enter the dependents’ information. 

Time is running out

But the time to act is now.

The IRS has issued a deadline of September 30 for these individuals to enter information into the nonfiler portal. Keep in mind; the portal is for nonfilers only. If you receive federal benefits and are required to file a 2018 or 2019 return, do so immediately.

Other options for non-filers

For individuals who do not have access to the Internet, the IRS has provided an alternative paper filing to submit to the IRS. You can find it here. Finally, if action is not taken by September 30, individuals would have to wait until next year to claim the credit on their taxes.

Kemberley Washington, CPA, is a financial news reporter, author, and owner of Washington CPA Services, LLC. She writes a blog at kemcents.com and 21daysof.com. Connect with her at @kemcents.

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