Economic Impact Payments: Rev & Tax FAQs

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The Department of Revenue and Taxation released its updated EIP FAQ2 which further clarifies information regarding the 2020 Recovery Rebates for Individuals (“Economic Impact Payments”) as they relate to Guam residents.

All eligible Guam residents, including Social Security Administration (SSA), Supplemental Social Security Income (SSI), Railroad Retirement Benefits (RRB) and Veterans Affairs (VA) recipients and beneficiaries and individuals with no filing requirements, must submit the
Economic Impact Payment – Non Filer Form (EIP-NF). Information provided is as of May 07, 2020:

Residents of Guam should not use the non-filer portal on the IRS website. All Guam residents are required to file with the Guam Department of Revenue and Taxation.

1. What is an Economic Impact Payment? 

The Coronavirus Aid, Relief, and Economic Security Act (CARES Act) provides for direct Economic Impact Payments to Americans for financial relief during the Coronavirus pandemic.

The Economic Impact Payment is a refundable credit which provides up to $1,200 for individuals, $2,400 for joint filers and $500 additional for each qualifying child ages 16 and under.

2. Who is eligible to receive a Payment? 

You may be eligible to receive a Payment if you:

• Are a U.S. citizen or U.S. resident alien;
• Cannot be claimed as a dependent on someone else’s return;
• Have a Social Security number (SSN) that is valid for employment (valid SSN); and

Exception: If either spouse is a member of the U.S. Armed Forces at any time during the taxable year, then only one spouse needs to have a valid SSN

• Have adjusted gross income below an amount based on your filing status and the number of your qualifying children:
-$75,000 for individuals if their filing status was single or married filing separately
-$112,500 for head of household filers and
-$150,000 for married couples filing joint returns

Taxpayers will receive a reduced payment if their AGI is between:
-$75,000 and $99,000 if their filing status was single or married filing separately
-$112,500 and $136,500 for head of household
-$150,000 and $198,000 if their filing status was married filing jointly

The amount of the reduced payment will be based upon the taxpayer’s specific adjusted gross income.

3. If I am eligible to receive an Economic Impact Payment (EIP), what do I need to do?

In order for our office to pay out the Advance Economic Impact Payment (EIP), you must file a 2019 or 2018 Income Tax Return or submit an EIP Non-Filer Form.

4. What income tax year will be used to determine my eligibility for an Economic Impact Payment? 

If you already filed your tax return for 2019, and Guam DRT has processed a valid 2019 Guam Individual Income Tax Return at the time of certification of the EIP to be paid, then Guam DRT shall determine, based on the individual’s 2019 Guam Individual Income Tax Return, the amount of the EIP that the individual would be allowed.

If an eligible individual has not filed a 2019 Guam Individual Income Tax Return or if filed and Guam DRT has not processed the individual’s 2019 Guam Individual Income Tax Return at the time of certification of the EIP to be paid, but has filed a valid 2018 Guam Individual Income Tax Return that Guam DRT has processed at such time, then, Guam DRT shall
determine based on the individual’s 2018 Guam Individual Income Tax Return, the amount of the EIP that the eligible individual would be allowed.

5. Will I receive a Payment if I do not make enough money to normally have to file an income tax return? 

Yes. Residents of Guam who are eligible retirees and recipients of Social Security retirement, disability (SSDI), survivors benefits, Railroad Retirement, or veterans benefits, as well as individuals who do not make enough money to normally have to file a tax return, are also eligible for the Payment. This includes those who have no income, as well as those whose income comes entirely from federal benefit programs, such as supplemental security income (SSI) benefits. No minimum income is needed for the Payment. (Please refer to FAQ#8 for further guidance)

6. Is filing an income tax return the only thing I have to do to be eligible for the Economic Impact Payment?

Filing a tax return is only one layer of the process to determine whether an individual is eligible. A taxpayer should not only have filed an income tax return, they should also meet income requirements (as indicated in #15 below) as well as the following:

• Have a valid, certified Social Security Number or Adoption Taxpayer Identification Number
• The following are not eligible for the Economic Impact Payment:
a. Nonresident alien individuals
b. Individuals claimed as a dependent of another taxpayer
c. Estates, Trusts, Partnerships, S Corporation
d. Deceased Individuals
e. Incarcerated Individuals

7. I recently filed a tax return. What do I need to do to get a Payment? 

You DO NOT need to take any further action if you filed a Guam income tax return for 2018 or 2019. If you already filed your tax return for 2019, and Guam DRT has processed a valid 2019 Guam Individual Income Tax Return at the time of certification of the EIP to be paid, then Guam DRT shall determine, based on the individual’s 2019 Guam Individual Income
Tax Return, the amount of the EIP that the individual would be allowed.

If an eligible individual has not filed a 2019 Guam Individual Income Tax Return or if filed and Guam DRT has not processed the individual’s 2019 Guam Individual Income Tax Return at the time of certification of the EIP to be paid, but has filed a valid 2018 Guam Individual Income Tax Return that Guam DRT has processed at such time, then, Guam DRT shall
determine based on the individual’s 2018 Guam Individual Income Tax Return, the amount of the EIP that the eligible  individual would be allowed.