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9525-7429503140710333375COVID-19 economic STIMULUS PAYMENTS COVID-19 economic STIMULUS PAYMENTS ADVICE FOR ATTORNEYS TO GIVE TO CLIENTS, BASED ON CLIENT SITUATION:STIMULUS CHECKS are “ECOMONIC IMPACT PAYMENTS.“ Almost all citizens and LPRs are eligible if they file taxes with social security numbers, but not if they file with IRS-issued individual tax number.Amount of EIP checks are $1200 for adult and $500 for each minor child. You are eligible for the full EIP if income is below $75,000 for individual or $150,000 for couple. People who filed a tax return in 2018 or 2019, and all Social Security and SSI recipients automatically receive the $1200 individual checks, and the $500 checks for children they claimed on tax returns. Non-tax filers who receive only SSI, or did not receive Social Security before Jan 1, 2020, can still file a request for the dependent payments until about May 5 at: [Note 1: If you miss the deadline, you can claim $500 dependent EIPs on 2020 tax return in 2021.] [Note 2: IRS might be forced by Congress to allow people who missed deadline to claim the dependent payments this year instead of waiting until 2021.] The IRS nonfiler portal will be available until October 15, 2020. Nonfilers who have not yet signed up have until this date to sign up to get their payments this year. IRS plans to push publicity/outreach on the issue, including to the homeless population. (See IRS Notice 2020-111 on June 3, 2020).Divorced/separated spouses where a joint return was filed for 2019 and where one spouse keeps the entire EIP-It is possible to file a superceding return before the deadline to file taxes on July 15, 2019. A superceding return will void the original filed in both names. However, it must be mailed in and the IRS is not currently processing mail. It will preserve their right to the payment however. The filing status depends on how long they have been divorced/phyiscally separated- less than 6 months (MFS/MFJ), more than six months (HOH or single).People who are being audited or are caught in the anti-theft filters are not getting their EIP. Please refer to LITC so we can assist.If someone believes their EIP was stolen, they should folllow the identity theft procedures established by the IRS, including filing Form 14039. This would include tax preparer fraud, diversion of the refund by an estranged spouse, or identity theft by someone they know. Offsets for child support owed by one party and not another- this is usually taken care of by filing an injured spouse form with the return. For those who did file the form with their return, IRS is aware of the issue and is working on a fix. If they did not file an injured spouse form, they should mail in the form but unsure when it will be processed. People who died or were in prison in 2020 before their EIP was issued are not eligible. They need to send the money back to the IRS. In the case of a widow/widower, half the money should be returned or in the case of a check, sent back to the IRS for re-issue.No advance payments can be issued after December 31, 2020.ADVICE TO EIP STIUMLUS PAYMENT RECIPIENTS:PEOPLE WITHOUT ANY JUDGMENTS, AND NO PUBLIC BENEFITS: Spend it when & how you want.PEOPLE WITH CHILD SUPPORT JUDGMENTS OR ORDERS: The stimulus payment can be garnished or attached for unpaid child support.PEOPLE WITH non-child support JUDGMENTS: Spend it on your own needs before May 25 (or whenever the Supreme Court lets Order #14 expire). Texas Supreme Court issued an Emergency Order #14 extending prohibition on garnishments until May 25. If that order is not extended again, then any unspent stimulus check money that is still in your bank account can be garnished for unpaid judgments. {Example:- a credit card company sued you and got a judgment for unpaid credit card debt}.ALL PUBLIC BENEFITS RECIPIENTS: STIMULUS CHECK IS NOT COUNTED AS INCOME. YOU HAVE A YEAR TO SPEND IT BEFORE IT IS COUNTED AS A RESOURCE. It will not be reduced due to Overpayments or Treasury Offsets for overpayments or student loans or for income tax debts. PEOPLE ON PUBLIC BENEFITS, such as SSI, SNAP, TANF, CHIP, Medicaid (not Star+Plus): It will not affect your benefits. You have a year before it is counted as a resource. Spend it however you want, but spend it within a year. PEOPLE ON MEDICAID IN NURSING HOMES or COMMUNITY BASED ASSISTANCE: (called Star+Plus Medicaid): Stimulus check will not affect your Medicaid. You have a year to spend it. You can save it so long as you don't go over $2000 after the 1 year is up. BUT DO NOT GIVE IT AWAY, except to your husband or wife at home, or minor or disabled child in your home. If you have no spouse at home, then you can give it away at the rate of $200 per month, which is considered “Nominal Amount” and will not affect your Medicaid. So, either:Spend it on yourself however you want, but spend it within a year.Save it for yourself if your bank accounts and all other assets won’t go over $2000.Give it to your wife or husband at home.If you give it to someone else, do not give away more than $200 per month. ................
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