The non-filer NRIs in the US and the Economic Impact Payment co-relation

The non-filer NRIs in the US and the Economic Impact Payment co-relation

by | Jun 18, 2020 | Adjusted Gross Income, Economic Impact Payment, EIP Correlation, Non Filer EIP

The non-filer NRIs in the US and the

Economic Impact Payment co-relation

The US Government has passed the CARES Act under which the US citizens and the US resident aliens would be receiving Economic Impact Payments (EIP). This is an initiative by the Federal Government to provide aid and alleviate the economic stress caused to the Americans due to the pandemic COVID-19. The IRS would be calculating and sending the Economic Impact Payments (EIP) to the eligible Americans. Currently, millions of Americans have already received their EIP and many more EIPs are being processed by the IRS.

Eligibility for the receipt of Economic Impact Payment (EIP)

The US citizens, permanent residents, and qualifying resident aliens can receive the EIP if

  1. They have a valid Social Security Number
  2. They have not been claimed as a dependent of any other taxpayer 
  3. They have Adjusted Gross Income (AGI) under certain limits. 

The US citizens and the US resident aliens would receive $1200 or $2400 as EIP depending upon certain criteria. The threshold for Adjusted Gross Income (AGI) of the Americans to receive the EIP is noted below.

  1.  Adjusted Gross Income (AGI) up to $75,000 for those filing tax returns as Single 
  2. Adjusted Gross Income (AGI) up to $150,000 for those who are married couples and are filing their tax returns jointly.
  3. Adjusted Gross Income (AGI) up to $112,500 for the head of household filers.

For those eligible taxpayers who have filed the tax returns for 2018 or 2019, the EIP would be received automatically. Moreover, those eligible retirees who do not file a tax return but are recipients of SSR (Social Security Retirement), Railroad Retirement benefits, Supplemental Security Income, VA Compensation, and Pension, etc. would obtain their EIP automatically.

Non-filer NRIs and their EIP

However, some NRIs or resident aliens might be having low income or not filing tax returns. These non-filer NRIs are also eligible for obtaining their EIP but they will have to enter their information with the help of the IRS webpage.

The IRS webpage consists of a tool “Non-Filers: Enter Payment Info Here” by which the non-filer NRIs can enter their payment information. This information can be used by the IRS to issue the EIP for the Non-filer NRIs.

An NRI would not be required to file a federal income tax return for the year 2019 due to any of the below-mentioned reasons.

  1. If the income of the NRI is less than $12,200 then there would be no necessity to file the Federal Income tax return for the year 2019.
  2. In case the NRI is married, filing his Federal tax returns jointly with his spouse and has an income less than $24,400 then he would not be filing the Federal Income Tax Return for 2019.
  3. If the NRI has no income, then he would not file the Federal Income Tax Return.

Information needed to be provided by the NRI

The non-filer NRI needs to provide some important information in the “Non-Filers: Enter Payment Info Here” tool to obtain his EIP.

  1. Full Name of the NRI, his email address, and present mailing address.
  2. NRI’s date of birth and Social Security Number (SSN).
  3. Bank Account Number of the NRI
  4. Driver’s license or any ID issued by the State Government.
  5. IP PIN (Identity Protection Personal Identification Number) provided by the IRS in the previous year. In case an NRI has lost the IP PIN, then he must log in to another IRS tool i.e. “Get an IP PIN” for obtaining a new IP PIN.
  6. For every qualifying child in the year of 2019, the NRI has to share details such as Name of the child, child’s Social Security Number, Adoption TIN, and his relationship with the NRI or with his spouse.

Procedure to use “Non-Filers: Enter Payment Info Here” tool

  1. An account must be created by the use of an email address and phone number. By this, the NRI would obtain a user ID and password.
  2. In the next step, information related to the filing status such as “Single” or “Married filing jointly” need to be filled up along with other personal information.
  3. A box asking whether the NRI or his spouse can be claimed as a dependent by someone must be checked.
  4. Further, bank information needs to be entered followed by another screen where the NRI can enter his personal information to verify himself. 

 With this, the procedure to complete the Non-Filers information is completed and an acknowledgment would be received by the NRI regarding the completion of the procedure. The Free Fillable Forms, a trustworthy partner of the IRS would use this information and complete Form 1040, compute the EIP, and send it to the recipient.

References

https://www.irs.gov/coronavirus/non-filers-enter-payment-info-here

https://www.irs.gov/newsroom/non-filers-enter-payment-info-here-tool-scenarios

https://www.irs.gov/coronavirus/economic-impact-payment-information-center#:~:text=U.S.%20citizens%20and%20U.S.%20resident,married%20couples%20filing%20joint%20returns

 

Top #10 most important things to know about the Economic Impact Payment Information Center

Top #10 most important things to know about the Economic Impact Payment Information Center

by | May 27, 2020 | 1040-NR, 1040-SS, AGI, COVID - 19, Economic Impact Payment, federal government, Form 1040, Tax Payers

Top #10 most important things to know about the Economic Impact Payment Information Center

Under the provisions of the CARES (Coronavirus Aid, Relief and Economic Security) Act of the Federal Government, the citizens in the US have been receiving their Economic Impact Payments (EIP). The Economic Impact Payment which is being received by the Americans is calculated automatically by the IRS.

However, there are many Americans, who have several queries related to the Economic Impact Payments such as their eligibility, amount of payments, by when to expect the EIP, etc. The answers to these queries related to the Economic Impact Payments can be obtained by the common people at the Economic Impact Payment Information Center.

Some of the major things which Americans must know about the EIP Information Center can be listed below.

  1. Eligibility for Economic Impact payment 
  2. Request for EIP
  3. Calculation of EIP
  4. Receipt of EIP
  5. Non-Filer Tool
  6. Social Security
  7. Railroad retirement
  8. Recipients of the Department of Veteran Affairs benefit
  9. Additional Information
  10. Return of EIP

Americans Must Know About The EIP Information Center 

a.Eligibility for Economic Impact Payment

1.US citizens and US resident aliens who are filing tax returns as individuals or heads of households will be eligible for receiving EIP of $1200 whereas those who are married and are filing returns jointly would receive an EIP of $2400.

2. To receive EIP the taxpayers must not be the dependent of another taxpayer, should be having a valid Social Security Number and their AGI (Adjusted Gross Income) must be up to the given limits

  • For single individuals or married couples but filing tax returns jointly, the AGI should be up to $75000.
  • For those taxpayers who are filing tax returns as head of household filers, the AGI should be up to $112,500.
  • For taxpayers who are married and are filing their tax returns jointly, the AGI must be up to $150,000.

3. In case, an individual does not have a valid Social Security Number, is a non-resident alien or has filed Form 1040-NR, Form 1040NR-EZ, Form 1040-PR or Form 1040-SS for the year 2019 will not be eligible to obtain the EIP.

b.Request for EIP

  1. If an individual has already filed the tax returns for 2018 or 2019, then there is nothing more to be done for receiving the EIP.
  2. The IRS would use the information of the 2019 tax returns for calculation of the EIP or would use the information of 2018 in case of non-filing of the 2019 returns.
  3. Taxpayers who have not filed returns for 2019 or 2018 can visit the IRS website and input their payment information in the link provided for Non-filers.

c.Calculation of EIP

  1. Individuals who are eligible for receiving EIP and are filing tax returns with a single status would receive $1200 as the EIP.
  2. If two individuals are filing their tax returns jointly, they are eligible to obtain an EIP of $2400.
  3. The eligible individuals would receive an additional $500 for each qualifying child who has been claimed during the filing of tax returns.

d.Receipt of EIP

  1. If an individual has received his tax refund for the year 2019 or the year 2018 in case of non-filing in 2019 by the method of Direct Deposit, then the IRS would use the latest information ad send your EIP by Direct Deposit.
  2. Moreover, in case of non-receipt of EIP through Direct Deposit the IRS would send the EIP to the mailing address present in the file of the IRS.

e.Non-filer Tool

  1. The Non-Filer: Enter Payment Info Here tool should be used for receiving EIP by those eligible individuals who have not filed tax returns for 2019 or 2018 and do not receive Social Security Retirement, Supplemental Security Income (SSI) or Survivor Benefits, Veteran benefits or any other benefits related to Railroad retirement.
  2. If you have filed your tax returns or you receive federal benefits, then the need for using the Non-filer tool is ruled out.

 

 

 

f.Social Security

The Social Security recipients who might not have filed tax returns for 2019 or 2018 but receive Form SSA-1099 will receive their EIP by the same method as that of the receipt of the Social Security Benefit.

g.Railroad Retirement

The recipients of Rail Road Retirement who might not have filed tax returns for 2019 or 2018 but receive the benefits by RRB-1099 will receive their EIP by the same method as that of the receipt of the Rail Road Retirement Benefit.

h.Recipients of the Department of Veteran Affairs benefit

The recipients of the Department of Veteran Affairs Benefit who might not have filed tax returns for 2019 or 2018 but receive Form SSA-1099 or RRB-1099 will receive their EIP by the same method as that of the receipt of the benefit.

i.Additional Information

Taxpayers need to be cautious about scam artists who would try to use the EIP as a strategy for performing other scams related to stealing. Taxpayers must remember that information about EIP can be obtained only by visiting the official IRS webpage and not by any calls, text, or emails.

j.Return of EIP

  1. For the return of EIP which was in the form of Direct Deposit, check, or money order; money order or personal check must be immediately sent to the IRS with information related to the SSN.
  2. If the payment was received in the form of a paper check, then it can be sent back to the appropriate section of the IRS by writing “Void” on the back of the check.

Hence, taxpayers can avoid calling up IRS for queries related to the EIP and rather visit the Economic Impact Payment Information center for resolving their queries.

References

  1. https://www.irs.gov/coronavirus/economic-impact-payment-information-center
  2. https://www.irs.gov/coronavirus/get-my-payment