COVID - STIMULUS PAYMENTS & TAXES

As part of the COVID-19 emergency response, the federal government is planning to send up to $1,200 to each adult in the United States who has a social security number, filed a tax return for 2018 or 2019, and earned less than $99,000. Payment will be made automatically by the IRS.  There is no need to apply for this benefit.

BEWARE of scams! The IRS and the Comptroller of Maryland will not ask for your privatebanking information on the phone, in a text message or by email.

 

Go to the following websites for the latest information:

Financial Relief Guide for all Marylanders from the MD Department of Labor: 

http://www.labor.maryland.gov/finance/consumers/frfinancialreliefguidecovid.pdf

Internal Revenue Service: IRS - What you Need to Know about Stimulus Fund

ABOUT ECONOMIC IMPACT (STIMULUS) PAYMENTS

Who will receive an economic impact payment?


- Eligible taxpayers who are required to file a tax return: (must meet the following)

1. Filed tax returns for either 2018 or 2019
2. Have a gross income not exceeding $99,000 per individual or have a gross
income not exceeding $198,000 if married filing jointly


- Individuals who are not required to file a tax return

Social Security recipients and railroad retirees who have a gross income not
exceeding $99,000 per individual or have a gross income not exceeding $198,000
if married filing jointly.

*The amount of the economic impact payment will vary based on gross income and number of
qualifying children. Taxpayers can receive at most $1,200 if filing individually. Married couples
can receive at most $2,400 if filing jointly. Taxpayers can receive up to an additional $500
dollars per qualifying child. Taxpayers with outstanding IRS balances will still receive stimulus
checks; they will NOT be offset against outstanding balances.


How will the IRS know where to send my money?


- If you filed a 2018 or 2019 return including information on where to directly deposit a
refund, the IRS will use that direct deposit information. If you had a refund check issued
to you, the IRS will send it to your last known address.


- If you did not file a return for either 2018 or 2019 but still qualify to receive a payment,
refer to the IRS’s information page at https://www.irs.gov/coronavirus-tax-relief-and-
economic-impact-payments for the latest updates on procedures for notifying the IRS of
how to get the payment to you.


Who will not receive an economic impact payment?


- Individuals with no children who exceed a gross income of $99,000 and married couples
with no children who exceed a gross income of $198,000.


- Nonresident aliens and those without Social Security numbers.


For more about economic impact payments, visit the IRS’s information page at
https://www.irs.gov/newsroom/economic-impact-payments-what-you-need-to-know.


IF YOU HAVE NOT FILED YOUR 2019 INCOME TAX RETURN


- The federal income tax filing deadline is extended to July 15, 2020.


- The Maryland state income tax filing deadline has also been extended to July 15, 2020.


- The IRS is issuing refunds for 2019 as normal.


- Taxpayers may pay federal income tax payments originally due on April 15, 2020, by
July 15, 2020, without incurring penalties and interest.

- Make sure your return has the correct address or correct direct deposit information.


REDUCED OR SUSPENDED IRS ACTIVITIES


General IRS Operations


Although the Internal Revenue Service will continue to operate during COVID emergency, there
may be longer wait times when calling. Some IRS offices are closed and cannot offer telephone
assistance. Thus, taxpayers should utilize online services to request account transcripts and
check the status of refunds.


The Taxpayer Advocate Service, which provides administrative assistance to taxpayers, is still
operating. Visit the Taxpayer Advocate Service’s COVID-19 information page here:
https://taxpayeradvocate.irs.gov/contact-us.


Under its People First Initiative, the IRS has suspended most enforcement action against
taxpayers. Most IRS collection actions, such as new lien filings and new levies on wages, bank
accounts, and other assets are suspended. For more information, see
https://www.irs.gov/newsroom/irs-unveils-new-people-first-initiative-covid-19-effort-
temporarily-adjusts-suspends-key-compliance-program.


The IRS will generally not start new audits.

Taxpayers also have until July 15, 2020, to respond to the IRS to verify that they qualify for the
Earned Income Tax Credit or to verify their income.


Existing Installment Agreements (payment plans) and Offers in Compromise
Installment payments due between April 1 and July 15, 2020 are suspended.


The IRS will not default any Installment Agreements for nonpayment or Offers for taxpayers
who are late in filing their tax returns for tax year 2018.


Have an upcoming U.S. Tax Court case?


All trial sessions through June 30, 2020 are canceled.


Mail court documents according to the filing deadline you have already been provided. If mail is
returned as undeliverable, keep a copy of the original envelope in which it was first sent.
Filing deadlines and statutes of limitations are not affected. Timeliness of mailing is determined
by the United States Postal Service’s postmark. Do not hand deliver documents to the Tax Court.

 

REDUCED OR SUSPENDED COMPTROLLER OF MARYLAND ACTIVITIES


The Comptroller’s office will not send out lien warning notices, issue liens, attach bank
accounts, or prevent renewal of any license.


Taxpayers who are currently on a payment plan and are unable to pay should contact
COVID19@marylandtaxes.gov to suspend further payment. For more information, see
http://www.comp.state.md.us/covid/.

 

FOR MORE INFORMATION
https://www.irs.gov/coronavirus
https://www.ustaxcourt.gov/
https://taxpayeradvocate.irs.gov/contact-us
http://law.ubalt.edu/clinics/TaxClinicClientPage.cfm

Maryland Volunteer Lawyers Service: What low-income Marylanders need to know about Stimulus Funds

© 2019 Maryland Access to Justice Commission. Proudly created with Wix.com.

  • Twitter Social Icon