Covid-19 (Coronavirus) personal finance thread

[VictoriaD75]

Information about who is getting the stimulus check can be found in the links below:

What do I need to know about the coronavirus stimulus package?

Economic Impact Payments

The IRS has created a Get My Payment portal to track the progress of these payments for taxpayers.

IRS Economic Impact Payments

Per the IRS:

If you did not receive the full amount to which you believe you are entitled, you will be able to claim the additional amount when you file your 2020 tax return.  This is particularly important for individuals who may be entitled to the additional $500 per qualifying child dependent payments. For VA and SSI recipients who don’t have a filing requirement and have a child, they need to use the Non-Filer tool (link) on IRS.gov by May 5 in order to have the $500 added automatically to their $1,200 Economic Impact payment. We encourage people to review our “How do I calculate my EIP Payment” question and answer (See question 11).

[RT78]

I was recently laid off from my job of 20 years.  I have a small pension that still sits with my former employer.  If I do not roll it over and want to take the pension as a lump sum so I have additional buffer while I am looking for a job, will I get relief from the normal 10% tax penalty under the CARES act?  I am 42 and live in Colorado.  Also, my understanding is that my former employer will hold back 20% for tax purposes at withdrawal, I assume then that the pension payout becomes part of my income for 2020 and would be taxed as such in 2021 correct?

[RobertG]

No, the 10% additional tax on early distributions does not apply to any coronavirus-related distribution.

A coronavirus-related distribution is a distribution that is made from an eligible retirement plan to a qualified individual from January 1, 2020, to December 30, 2020, up to an aggregate limit of $100,000 from all plans and IRAs. 

The distributions generally are included in income ratably over a three-year period, starting with the year in which you receive your distribution. For example, if you receive a $9,000 coronavirus-related distribution in 2020, you would report $3,000 in income on your federal income tax return for each of 2020, 2021, and 2022. However, you have the option of including the entire distribution in your income for the year of the distribution.

Please see the IRS website Coronavirus-related relief for retirement plans and IRAs questions and answers for further information.

@RT78

[Zsfitzenrider]

I had the same problem. I finally had to get the additional verification on Turbo Tax that will verify your identity. You can pay for it by deducting the price from your return. I just sent it in again so I'm hoping this fixes it and does not get rejected again.

[Gez2000]

FYI: Just wanted people to know about the Stimulus payment. Initially I hadn't been able to file my 2019 taxes before the Stimulus was sent out. When I received my Stimulus it was only $400. That was because the IRS had to go back to my 2018 filing year. In 2019 I lost my job and got married. I was upset because if I been able to get my 2019 taxes filled before that, I would have received $2400. Two weeks after I filed my federal taxes I received my expected refund. To my surprise, one week later I noticed that the IRS deposited $2000 into my account, the info my bank had was "IRS TREAS 310 TAX REF 061720". Is seems that they did redo my Stimulus and sent me the difference, after all. 😁

[tabi1994]

The irs posted a phone number on JUne 10th that  you could call and ask for a trace. took me 5 days to finally get thru but I have finally gotten thru 3 times to have a trace put on my stimulus check.HOWEVER  the first time he said he could help with that and put me on hold for 29 minutes before it hung up and the last 2 times they told me they could not do a trace.

When THEIr website was just recently updated to say if it has been over 4 weeks you can have a trace but they are telling me 8 weeks. 8 weeks is what you have for out of the country mail.

Why update the page to say anything if  agents are told to refuse to help anyone. I was so relieved to think I could find out where it was and then to get shot down with the explanation 'due to the coronavirus' well Covid has been going on a lot longer than the post on June 10th so wth?

[VictoriaD75]

As stated above, the IRS has opened a dedicated phone line to assist with stimulus payments. Due to volume, expect delays.

Telephone Assistance: IRS live phone assistance is extremely limited at this time. For Economic Impact Payment questions, call 800-919-9835.

IRS Telephone Assistance

[tabi1994]

And as I stated, I called that number only to be told I needed to wait 4 more weeks to call even though the website states that after 4 weeks you may call that number and ask for a trace. I do not have a change of address or live out of the country. I was patient and called every day for 5 days because I understood 'phone delays' not an outright different answer when I got a 'human'.  I am stating that multiple IRS agents at the number 'told me they would not help'. Please do not patronize me. If you have information on a person that will actually do what the website says please share that instead.

[Ceondeon19]

How do you do the verification 

[tabi1994]

COPIED FROM THE IRS PAGE

A55. If your payment was issued by direct deposit, your first step is to check with your bank and make sure they didn’t receive a deposit.

You should request a trace on your Payment if you received Notice 1444 or Get My Payment shows your payment was issued on a specific date, but you have not received it and it has been more than:

• 5 days since the scheduled deposit date
• 4 weeks since it was mailed by check to a standard address
• 6 weeks since it was mailed, and you have a forwarding address on file with the local post office
• 9 weeks since it was mailed, and you have a foreign address

Do not request a Payment trace to determine if you were eligible for a payment, the amount of payment you should have received, or you have not received a Notice 1444 or a payment date from Get My Payment.

How we process your claim

We will process your claim for a missing payment in one of two ways:

• If the check was not cashed, we will issue a replacement. If you find the original check, you must return it as soon as possible.
• If the refund check was cashed, the Bureau of the Fiscal Service (BFS) will send you a claim package that includes a copy of the cashed check. Follow the instructions. BFS will review your claim and the signature on the canceled check before determining whether they can issue you a replacement check.

You will generally receive a response 6 weeks after we receive your request for a Payment trace, but there may be delays due to limited staffing. Get up-to-date status on affected IRS operations and services.

A trace on an Economic Impact Payment (EIP) follows the same process as a trace on a tax refund. To start a Payment trace:

• Call us at [phone number removed] (you may experience long wait times or recorded help because our staffing is limited)

or

• Submit a completed Form 3911, Taxpayer Statement Regarding Refund (PDF). 
• If you submit the form and you are Married Filing Jointly, both spouses must sign the form;
• Write “EIP” on the top of the form and complete Sections I, II and III;
• Answer the refund questions as they relate to your EIP;
• When completing Number 7 under Section I, check the box for “Individual” as the Type of return; enter “2020” as the tax period and leave the date filed blank;
• Mail or fax the form to:

[Ceondeon19]

My payment is still not available though I am eligible. When will I get the help I need to receive my money 

[DoninGA]

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@Ceondeon19  wrote:

My payment is still not available though I am eligible. When will I get the help I need to receive my money 

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Only the IRS determines when or if a stimulus payment is distributed.

Go to this IRS website for stimulus payment information FAQ's - https://www.irs.gov/coronavirus/economic-impact-payment-information-center

Use this IRS website for stimulus payment status - https://www.irs.gov/coronavirus/get-my-payment

Use this IRS website for get my payment FAQ's - https://www.irs.gov/coronavirus/get-my-payment-frequently-asked-questions

[Rick3893]

If you answer the dependent children questions truthfully in Turbo tax deluxe, you run the risk of an IRS Audit. For example if your child qualifies as a dependent you run the risk of an audit if your child received their own COVID-19 stimulus check directly based on their tax return. If you do not know how your child filed their tax return, where it asks them if they are a dependent of someone else's return, then you could potentially incorrectly claim them as a dependent if they indicated that they are not a dependent on someone else's return. Likewise, if your child files a return and checks that they are dependent on someone else's return, and that someone else doesn't claim them, they would lose their stimulus check and that someone else would also lose the dependent deduction and their stimulus value on their stimulus check. Knowing to ask these questions on the tax software to determine dependent eligibility would be difficult. They could indicate that if you claim your child as a dependent that they should indicate on their tax return that they are being claimed by someone else.

[mesquitebean]

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@ Rick3893 wrote:

 If you do not know how your child filed their tax return, where it asks them if they are a dependent of someone else's return...

If someone doesn't know how their child is going to answer the dependent question on their tax return, that's a failure of family communication, which is, unfortunately, all too frequent as folks are increasingly turning their parenting duties over to the schools and the government.     Ideally, the parent should sit the child down every January and make sure the child understands how to answer that question on his/her return and the implications, and give the child an ultimatum to answer it correctly.

[Kurtisp12]

I completed my tax return on March 17 through turbotax. I have yet to receive my refund. Is there a reason for this and is there anything I can do to expedite?