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Regulation and Compliance > Federal Regulation > IRS

IRS Gives Families More Time to Get Their $500-Per-Child Stimulus Payments

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The IRS is reopening registration for families who did not receive the $500-per-child payments they were entitled to under the Coronavirus Aid, Relief and Economic Security (CARES) Act that passed earlier this year.

Payments were supposed to be automatically sent to those with children under 17 who had already filed their taxes for 2019 or 2018 and to those who don’t file income tax returns and used the non-filer tool at the IRS website, but there were some glitches.

The U.S. Government Accountability Office found that many stimulus payments distributed between April 10 and May 17 did not include the additional $500 per qualifying child even though those individuals had submitted information about their dependents to the IRS.

On April 20, the IRS, aware that certain non-filers hadn’t received the $500-per-child payments, issued an alert for them to use the non-filer tool by April 22 in order to receive those funds.

The agency is now asking certain non-filers who didn’t receive the $500-per-child benefits they qualified for to complete the non-filer form between Aug. 15 and Sept. 30. It anticipates payments will be issued by mid-October.

Those filers include individuals who receive Social Security retirement, survivor or disability benefits, Supplemental Security Income (SSI), Railroad Retirement benefits and Veterans Affairs Compensation and Pension (C&P) benefits and did not file a tax return in 2018 or 2019.

Individuals who miss the Sept. 30 deadline will have to wait until next year and claim the credit on their 2020 federal income tax return. 

Individuals who already used the non-filers tool to receive the $500-per-child payment before May 5 don’t have to do anything, according to the IRS. It will automatically provide them payments in October. 

IRS Commissioner Chuck Rettig said the agency is “allocating additional IRS resources to ensure eligible recipients receive their full payments during this challenging time” to help get these payments distributed.

— Check out Put Those RMDs Back. Now. on ThinkAdvisor.


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