$1,200 Covit-119 grant

[Desertis]

Should we be filing 2018 returns that were not required to qualify taxpayer's for the $1,200

[abctax55]

No...

And what exactly is a "Covit-119 grant" ?

[Just-Lisa-Now- · Accepted solution]

If they werent required because they are on social security, no return is needed, SS recipients will get the stimulus automatically.

[Desertis]

Probably better refereed to as $1,200 Stimulus grant.  Every individual who made less than $75,000 or $150,000 joint in 2018 will receive $1,200 per adult and $500 per child.  If you used direct deposit your clients will see the money in 2 to 3 weeks.  No action required on your or on their part.  My question is for individuals who did not have to file.  Will they be identified by Social Security, Railroad, or government pensions.  I have some old clients living close to the edge that I think I should be reaching out to.  I suspect once the payments go out there will be no opportunity to file a 2018 return and say I should have been included.  Nothing to support that feeling, other than 40 years of practice.

[abctax55]

Will they be identified by Social Security, Railroad, or government pensions.

Yes - based on everything I have read.

[qbteachmt]

What I heard on the news is: If we have your Banking info, you'll see the deposit automatically made.

If your client is living off the grid and outside of the system, too bad.

[BobKamman]

Will they be identified by Social Security, Railroad, or government pensions.

First, why is anyone worried about unfiled 2018 returns?  Filing a 2019 return would achieve the same result -- although the unanswered question is the cutoff date for IRS to determine who gets paid.  

The 2019 can be e-filed.  I keep reading complaints about e-filing the 2018.  Problem is, if there is no refund, the bank account information will probably not process for either year.  

Second, what is a "government pension"?  I assume you mean federal government.  There are military and civilian.  There are also nontaxable VA benefits -- I'm fairly certain those will be included.  The problem with many of these will be that a lot of $1,200 payments will be made to households where a married couple is eligible for $2,400.  

Rather than beating the bushes for returns that might not have to be filed, I would ask clients if they know someone who is a nonfiler and deserves help. 

[Desertis]

2019 returns are not due until 7/15/2020 or extended ones to 10/15/2020.  TPC’s estimates assume that all of those eligible for a payment receive one. However, it is likely that some will not, perhaps because they did not file a tax return or receive a Social Security benefit in 2019. Even though the payment could be based on 2018 or 2020 income tax returns for those who did not file in 2019, there still will be some who may not get payments, perhaps because they did not file returns for those years, are unbanked, or may have moved.

If you haven't filed federal taxes for 2018, do that right now

The IRS said if you haven't filed your 2018 federal taxes, that could affect your stimulus check and recommends that anyone who hasn't filed a 2018 tax return to file now.