Economic Impact Payments(EIP) are being distributed to millions of taxpayers impacted by the coronavirus outbreak. The measure has been a success, but there is a small thing you must make sure to do when you receive your payment: Don’t forget to keep notice 1444.
The IRS mails this notice to each recipient’s last known address a couple of weeks after depositing their payment. Keeping this notice can be very important, ass you will see below.
Why Is It Important to Keep Notice 1444?
It’s important to keep it because if you think the amount of your payment is wrong, you will refer to your Notice 1444 when you file your 2020 tax return to claim additional credits, if you are eligible for them.
Keep your Notice 1444 with other tax records, such as W-2 Forms from employers, 1099 Forms from banks and other income documents. It’s a good practice to keep past returns and all supporting documents for at least three years.
Reasons Why Your EIP May Be Smaller Than Expected
If you already received your EIP and you think the amount is smaller than it should be, then . For example:
- You haven’t filed your return for 2019, so your Economic Impact Payment is based on past information.
- The qualifying child is under 17 years of age (considering how old they are at the end of the year for the tax return on which the IRS bases the payment amount).
- Your payment was offset by past-due child support payments.
If you believe that none of these reasons apply to you and you think the amount of your EIP is wrong, make sure to keep Notice 1444 so you can claim any credits you are eligible for in your 2020 tax return.
What Are Economic Impact Payments?
Economic Impact Payments are a stimulus rolled out by the IRS and the Treasury Department that offers financial relief to taxpayers impacted by the coronavirus outbreak.
Eligible individuals may receive up to $1,200, while eligible couples filing jointly may get up to $2,400. Furthermore, taxpayers may receive an additional $500 for every qualifying child.
We have covered Economic Impact Payments extensively. Here are some past posts you may find useful:
- Here’s Why You Get “Status Not Available” When Checking Your Economic Impact Payment.
- This is Why Your Economic Impact Payment May Be Smaller Than Expected
- Some People Will Get Their Economic Impact Payment by Prepaid Debit Card
- What Happens if You Misplace Your Economic Impact Payment Prepaid Card?
Get Help From the Experts
The IRS has processed over 159 million Economic Impact Payments. If you haven’t received yours, remember that you can check online the status of your payment. Also, keep in mind that the deadline to file and pay your taxes is July 15, so this is the right time to get in touch with a tax expert to get answers to any questions you may have about any topic related to taxes, from Economic Impact Payments to advice on how to file and pay your taxes.
The IRS’ response to COVID-19 changes constantly, so it’s important to stay updated. You can check the IRS website or this blog. It’s also a good idea to get advice from an expert who can help you get advantage of the relief initiatives unrolled by the government.
At Meadville Tax Services we have the know-how and the drive to assist you so you can file your taxes efficiently, limiting your tax liability while staying compliant with federal tax regulations.