Coronavirus Stimulus Payment and Tribal Members

Coronavirus Stimulus Payment and Tribal Members*

Contents of this document is provided by CRITFC for informational purposes only. It is subject to change, does not guarantee payment, and in no way constitutes tax advice.

 

The Coronavirus Aid, Relief, and Economic Security (CARES) Act that was signed into law in March included an economic impact payment to every American with a Social Security number. Tax filers with adjusted gross income up to $75,000 for individuals and up to $150,000 for married couples filing joint returns will receive the full payment of $1,200 for individuals or $2,400 for married couples and $500 for each qualifying child. Income above this will receive a smaller payment using a formula.

 

Filing Status Potential Payment Reduced Payment if Income Over
Single, No Children $1,200 $75,000
Head of Household, 1 Child $1,700 $112,500
Head of Household, 2 Children $2,200 $112,500
Joint Filers, No Children $2,400 $150,000
Joint Filers, 1 Child $2,900 $150,000
Joint Filers, 2 Children $3,400 $150,000

 

More detailed information from the IRS available here:

 

This payment distribution will begin in mid-April and will be distributed automatically, with no action required for most people. However, some taxpayers who typically do not file returns will need to register to receive the economic impact payment.

 

Some tribal members are not required to file a tax return. Typically filing a tax return is not required if the individual’s only source of income is Social Security, their income is derived from treaty fisheries-related activities (IRS Section 7873 income info available here: https://www.irs.gov/government-entities/indian-tribal-governments/irc-section-7873-treaty-fishing-rights-related-income ), or if their annual income is below $12,200. Even if you don’t file taxes, you will be eligible to receive this payment, as long as you register.

 

Below are details and links to help tribal members in these situations register to receive their payment.

 

I filed 2018 or 2019 taxes individually or with my spouse.

You are all set. The payment will be based off the information in your return. If you opted to receive your tax return by Direct Deposit, your payment will be electronically transferred to that account. If you opted to receive your tax return by check or if you didn’t enter a bank account because you owed money, a check will be mailed to you. Treasury plans to develop a web-based portal for individuals to provide their banking information to the IRS online, so individuals can receive payments immediately as opposed to checks in the mail, but this website has not been made available yet.

 

My only income is from Social Security so I didn’t file taxes in 2018 or 2019.

You are all set. Social Security recipients won’t have to file a tax return to get their stimulus payment. Instead, it will go out automatically. The IRS will use the information Social Security already has on file to distribute the benefit.

 

Since the IRS would not have information regarding any dependents for these people, each person would receive $1,200 per person, without the additional amount for any dependents at this time.

 

I didn’t file 2018 or 2019 taxes because my income was earned from treaty fisheries-related activities and therefore tax-exempt OR because my income was below $12,200 and therefore not required.

The Treasury Department has announced it is creating a website for those not required to file taxes to register to receive their payment, however this system has not been made available yet. Check back in a few weeks for that link. The tax filing company TurboTax has also partnered with the Treasury to create a free Stimulus Registration for non-tax filers to give the IRS your up-to-date mailing address and direct deposit banking information. Note: This also involves creating a free TurboTax account. Direct link to TurboTax registration: https://myturbotax.intuit.com/sign-up/?stimulus=true

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Contents of this document is provided by CRITFC for informational purposes only. It was gathered from official IRS publications, subject to change, does not guarantee payment, and in no way constitutes tax advice.