Over the next few weeks, you may receive a notice from the IRS after receiving your economic impact payments. Notice 1444 is the form that shows the amount of the recipient’s Economic Impact Payment (EIP) and will be mailed to every EIP recipient’s last known addresses.
Please do not be alarmed that you are receiving a notice from the IRS. This information will be needed for your 2020 tax return. You can either send the notice to SSF for safekeeping with your records or retain them until you send us all of your items for next year’s tax filing.
In e-News for Tax Professionals, the IRS has explained the tax implications of receiving an economic impact payment. They note that the payments are considered an advance credit against 2020 tax.
Taxpayers will not include the payment in taxable income on your 2020 tax return or pay income tax on the payment. It will not reduce your refund or increase the amount of tax you owe when you file a 2020 Federal income tax return next year.
When you file a 2020 tax return next year, you may claim any additional credit for which you are eligible. The IRS cannot correct or issue an additional payment at this time and will provide further details on IRS.gov on the action individuals may need to take in the future.
For more information, reach out to your SSF advisor or give us a call at 925.271.8700 or send us a message at email@example.com.