Your Economic Impact Payment May Have a Surprise Amount

            Many Economic Impact Payments (EIP) have been processed and deposited. Others will soon be deposited or mailed. The typical amounts for those who qualify have been widely publicized, but some are finding out that their EIP is not the amount that they had expected. There are a few reasons why.

          Tax Returns. For most individuals or couples, their EIP will be based off of the 2019 Tax Return. If it has not been filed, or not yet processed, 2018 will be used. So any changes between those years will not be reflected in the payment. Dependents. To qualify to receive an extra $500 for a claimed dependent, they must have a Social Security Number and be age 17 or younger. If a Taxpayer over the age of 17 is claimed, then they cannot receive a $1,200 payment of their own. Other Taxpayers may get a payment with an odd amount.

          Child Support. All EIP will be off-set by any past due child support. If this happens a notice will be sent. The Internal Revenue Service (IRS) is also aware that a portion of this payment can also go to a spouse who filed an injured spouse claim. Creditors. The EIP is not protected from creditors once it has been deposited. Next Year. In some instances, a smaller than expected amount will be fixed with the 2020 Tax Return. Please keep good records for this year. Reach out to a Qualified Tax Professional working remotely to help answer your questions.

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