COVID - STIMULUS PAYMENTS & TAXES

As part of the COVID-19 emergency response, the federal government automatically sent 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. The federal government is planning to send another $600 to individuals who meet somewhat modified requirements. There is no need to apply for this benefit. 

If you missed the November deadline to register online for the first Economic Impact Payment you may still be eligible to receive a payment if

1. You did not register online, by mail and did not get a payment in 2020 or,

2. You received a payment, but it wasn’t the full amount of the Economic Impact Payment.

 

When you file your 2020 Form 1040 or 1040SR you may be eligible for the Recovery Rebate Credit. Save your IRS letter - Notice 1444 Your Economic Impact Payment - with your 2020 tax records. You’ll need the amount of the payment in the letter when you file in 2021.

For more information on how to claim your recovery rebate credit go here:

https://www.irs.gov/coronavirus/economic-impact-payments

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 2019
2. Have a gross income not exceeding $150,000 (married and filing jointly); $112,500 (head of household); or $75,000 (any other filing status. Your payment will be reduced by 5% of the amount by which your AGI exceeds the applicable threshold.

*The amount of the economic impact payment will vary based on gross income and number of
qualifying children. Taxpayers can receive at most $600 if filing individually. Married couples
can receive at most $1,200 if filing jointly. Taxpayers can receive up to an additional $600
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 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 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.

 


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.


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

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