Rev & Tax issues FAQs on COVID-19 economic impact payments

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The Department of Revenue and Taxation released the following information regarding the 2020 Recovery Rebates for Individuals (“Economic Impact Payments”) as they relate to Guam taxpayers. Information provided is as of April 6, 2020.

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

2. Is filing an income tax return the only thing I have to do to be eligible for an Economic Impact Payment?
Answer: 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 #3 below) as well as the following:
1. Have a valid, certified Social Security Number or Adoption Taxpayer Identification Number
2. 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 or trusts

3. What are the income requirements for the Economic Impact Payments?
Answer: The income requirements are as follows: Taxpayers with adjusted gross income up to $75,000 for individuals, up to $112,500 for filers who filed as head of household, and up to $150,000 for married couples filing joint returns will receive the full payment. For filers with income above those amounts, the payment amount is reduced by $5 for each $100 above the $75,000/$112,500/$150,000 thresholds. Single filers with income exceeding $99,000, those filing as head of household with income exceeding $136,500, and joint filers with income exceeding $198,000 with no children are not eligible.

As an example, a single taxpayer who has $75,100 in adjusted gross income will receive an Economic Impact Payment in the amount of $1,195.

4. What income tax year will be used to determine my eligibility for an Economic Impact Payment?
Answer: For Guam taxpayers, 2018 will be utilized to determine eligibility.

5. If I only filed an income tax return for tax year 2018, and have not yet filed one for tax year 2019, do I have to file a 2019 income tax return to receive the Economic Impact Payments?
Answer: For people who have filed a 2018 income tax return—and not a 2019 income tax return—and have minimal to no changes in marital status, adjusted gross income, or number of dependents, there is no need to rush to file a 2019 income tax return if such filing is only for the purpose of qualifying for the Economic Impact Payments.

6. If I filed an income tax return for tax year 2018 and 2019, do I have to do anything else to qualify for the Economic Impact Payments?
Answer: People who have filed either a 2018 or 2019 income tax return, will not have to do anything else in order to qualify for the Economic Impact Payments.

7. Will my son or daughter who is a college student be eligible to receive an Economic Impact Payment?
Answer: The $500 Economic Stimulus Payment for dependents applies only for those children dependents who are below age 17 and who are not claimed on any other taxpayer’s return.

8. If I owe taxes to the government of Guam will my Economic Impact Payment be garnished?
Answer: No. With the exception of child support, there will be no garnishments, including for outstanding taxes due.

9. Should I file my income tax return if I don’t have my W-2?
Answer: No. All income must be included when you file your tax return. Income tax returns are signed under penalties of perjury. Specifically, on the signature section of the income tax return it states that the taxpayer is declaring that he/she has “examined and this return and schedules, and to the best of [their] knowledge and belief, they are true, correct, and complete.” Forms W-2 and Forms 1099 were required to be issued by employers and payors, respectively, no later than January 31, 2020. Be sure to obtain all the information required to file your return. Any items not included may result not only in additional income taxes, but also in assessment of interest and penalties on the taxes due.

10. How can I file my income tax return?
Answer: Taxpayers who have not filed their 2019 income tax return who have only a Form W-2 and/or 1099 and do not have any dependents can file online at www.myguamtax.com. Please take time to check our website https://www.myguamtax.com/app/incometax/ty2019/whoCanUse1040ez.do to ensure that you meet the criteria’s to file online. Taxpayers may also either mail in their income tax returns to Dept. of Revenue and Taxation Taxpayer Services Division, P.O. Box 23607, Barrigada, GU 96921 or file them at the drop box at DRT’s Barrigada office.

11. How do I file using the DRT drop box?
Answer: Taxpayers who utilize the DRT drop box for filing should provide the following:
a. A minimum of two copies of the income tax return – one for the government and one for the taxpayer
b. Phone number and e-mail address
c. Taxpayers who would like their copies to be mailed to them, should include a self-addressed stamped envelope

12. Are the Economic Impact Payments taxable?
Answer: No.

13. Will the Government pay interest on Economic Impact Payments?
Answer: No. The Government will not pay any interest on payments.

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