Coronavirus (COVID-19) Tax Relief


The Treasury Department and the IRS announce tax relief due to the Coronavirus (COVID-19) situation.

Tax guidance related to the Coronavirus (COVID-19) will be updated here as new information is made available through the U.S. Treasury Department and the IRS. You can also visit the Coronavirus Tax Relief and Economic Impact Payments page on IRS.gov.

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How Do I Get An Economic Impact Payment?

STEP 1: Determine your eligibility first

STEP 2: Check to see if the IRS has already issued or scheduled your payment by visiting the IRS.gov website and using the “Get My Payment” tool.
  • To help protect against fraud, the tool does not allow taxpayers to change bank account information already on file with the IRS nor does it allow taxpayers to change their address.

STEP 3: If your Economic Impact Payment has not been issued continue using the tool below.


The Coronavirus Aid, Relief, and Economic Security Act (CARES Act) legislation includes the Economic Impact Payments distributed by the Internal Revenue Service.

WHO IS ELIGIBLE

Eligible taxpayers may qualify for up to $1,200 each, or up to $2,400 if married filing jointly, and up to $500 for each qualifying child.

A qualifying child is one who was claimed as a dependent on the last filed tax return, tax year 2019 or tax year 2018, and who will not reach age 17 by Dec. 31, 2020. This is the same criteria used to determine eligibility for the Child Tax Credit.

The gross amount of the payment is reduced by $5 for each $100 earned above $75,000 for single filers, $112,500 for head of household filers and $150,000 for married filing joint filers. Single filers with income exceeding $99,000, $136,500 for head of household filers and $198,000 for joint filers with no qualifying children are not eligible and will not receive payments.

NON FILERS

If you’re a U.S. citizen with income less than $12,000 ($24,000 for married couples) and aren't generally required to file a tax return with the IRS, you can use the Economic Impact Payments registration tool to provide the IRS with your information needed to determine your eligibility and payment amount.

WHO ISN’T ELIGIBLE

Tax filers whose adjusted gross income exceeds certain threshold amounts are not eligible.

Who Is Not Eligible

FILING STATUS ADJUSTED GROSS INCOME
 Single or married filing separate
(with no qualifying child)
 $99,000+
 Head of Household  $136,500+
 Married filing joint
(with no qualifying child)
 $198,000+


Also, you may not be eligible if:

  • You can be claimed as a dependent on someone else’s return. For example, this would include a child, student or older dependent who can be claimed on a parent’s return.
  • You do not have a valid Social Security number. A taxpayer with an individual taxpayer identification number (ITIN) does not qualify.
  • You are a nonresident alien.
  • You filed Form 1040-NR or Form 1040NR-EZ, Form 1040-PR or Form 1040-SS for 2019.


FILING A TAX RETURN

In general, taxpayers who already filed tax returns, either in 2018 and 2019, will automatically get their payment, and with respect to the payment only, do not need to do anything further at this time. If you haven’t filed your 2019 tax return yet, you should file it when you are able. The IRS will use information from your 2018 tax return to calculate your payment amount. For more information on when your 2019 tax return is due, see Filing and Payment Relief below.

Taxpayers who receive Social Security retirement or Railroad Retirement benefits, who are not typically required to file tax returns, will not need to file to receive a payment. The IRS will use the information on the Form SSA-1099 and Form RRB-1099 to generate Economic Impact Payments of $1,200 to these individuals even if they did not file tax returns in 2018 or 2019. Recipients will receive these payments as a direct deposit or by paper check, just as they would normally receive their benefits. Social Security Disability Insurance (SSDI) recipients are also part of this group who don't need to take action. But see the Taxpayers Not Normally Required to File A Tax Return section below if you are one of the taxpayers just described who normally do not have to file, but you have qualifying children under age 17.


TAXPAYERS NOT NORMALLY REQUIRED TO FILE A TAX RETURN

Some taxpayers who typically do not file returns will need to submit a simple tax return to receive the economic impact payment.

If you’re a U.S. citizen with gross income less than $12,200 ($24,00 for married couples) and aren't generally required to file a tax return with the IRS, you can us the ‘Non-Filers: Enter Your Payment Info Here’ tool to provide the IRS with your information needed to determine your eligibility and payment amount.

You should complete this tool as quickly as possible, so the IRS has the information it needs to issue your payment. There is no fee to use this tool.

Special note: People in these groups, who have qualifying children under age 17, can use this tool to claim the $500 payment per qualifying child. Otherwise, you may not be able to claim qualifying children until or unless you file for tax year 2020.

PAYMENT DISTRIBUTION - WHEN WILL I GET MY PAYMENT

The IRS began issuing payments to taxpayers who already had existing direct deposit information on file the week of April 13, 2020. Payments will continue to be issued over the coming weeks and months.

This includes taxpayers who filed tax returns in 2018 and 2019 and most seniors and retirees.
Use the "Get My Payment" application to:

  • Check your payment status
  • Confirm your payment type: direct deposit or check
  • Update direct deposit bank account information in some situations

Note: You cannot use the Get My Payment application to update the direct deposit bank account information after an Economic Impact Payment has been scheduled for delivery. To help protect against potential fraud, the application also does not allow you to change direct deposit bank account information already on file with the IRS. However, if you who did not use direct deposit on your last tax return to receive a refund, or when your direct deposit information was inaccurate and resulted in a refund check, you will be able to provide that information and speed up payment with a deposit into your bank account.

Special note: If you have existing past due child support obligations, your payment will be sent to the agency in control of those accounts instead of refunded directly to you. All other debts to which the IRS normally applies refunds will not be paid using your Economic Impact Payment. For more information on regular tax refund offsets, see our Refund Offset page.

PAYMENT LETTERS WITH INSTRUCTIONS TO FOLLOW, IF YOU DID NOT RECEIVE IT

For security reasons, the IRS plans to mail a letter about the economic impact payment to each taxpayer’s last known address within 15 days after the payment is paid. The letter will provide information on how the payment was made and how to report any failure to receive the payment.

If you are unsure if you are receiving a legitimate letter, the IRS urges taxpayers to visit IRS.gov first to protect against scam artists.

MORE INFORMATION

The IRS’s “Get My Payment” application, will help you check your payment status, confirm your payment type, and update your bank info. The Get My Payment application will not, however, allow you to change your address. To change your address:

  • If you have not filed your 2019 tax return, enter your new address on your return when you file. The IRS updates its records when your return is processed. File electronically to ensure your return will be processed more quickly.

  • If you have filed your 2019 tax return and you did not receive a refund via direct deposit, your payment will be mailed to the address the IRS has on file for you. This is generally the address on your most recent return or as updated through the United States Postal Service (USPS). If you have moved since filing your 2019 tax return, you should notify the IRS by filing Form 8822, Change of Address. You should also notify the Post Office serving your old address.

Visit the IRS Economic Impact Payment Information Center for more details on Economic Impact Payment eligibility. Also see Get My Payment Frequently Asked Questions (tool) and Economic Impact Payment Frequently Asked Questions.

The IRS postponed certain compliance actions under a new program entitled “IRS People First Initiative,” effective April 1, and running through July 15 initially, in an effort to help taxpayers facing tax challenges in light of the Coronavirus (COVID-19) pandemic. The changes include issues ranging from postponing certain payments related to Installment Agreements and Offers in Compromise to collection procedures and limiting certain enforcement actions.

The new IRS People First Initiative outlines the IRS’s temporary policies in the following key tax areas:

  • Earned Income Tax Credit and Wage Verification Reviews
  • Non-Filers
  • Audits
  • Appeals
  • Field Collection Actions
  • Liens and Levies
  • Passport Certifications to the State Department
  • Private Debt Collection
  • Statute of Limitations
  • Practitioner Priority Service

Visit www.irs.gov/coronavirus for more detailed guidance from the IRS.

EXISTING INSTALLMENT AGREEMENT INFORMATION

If you have an existing installment agreement with the IRS, see our TAS Tax Tip for special instructions that you can follow to suspend payments without calling the IRS in certain instances. Please be aware that your financial institution may charge fees for suspending automatic payments, depending on the account policy.

The Treasury Department and the IRS announced new tax relief due to the Coronavirus (COVID-19). As a result, any taxpayer with a Federal income tax payment or Federal income tax return due normally due on or after April 1, 2020 and before July 15, 2020, now has more time to file and pay. The due date for filing Federal income tax returns and making Federal income tax payments is automatically postponed to July 15, 2020.

The relief applies to all taxpayers, not just individuals. This means anyone, including Americans who live and work abroad, have until July 15 to file their 2019 federal income tax return and pay any tax due.

You do not have to file extension forms (Form 4868 or Form 7004) in order to file Federal income tax returns or pay Federal income tax by July 15, 2020, and you do not need to contact the IRS to qualify. If you cannot file by July 15, 2020, individuals can request an extension by filing Form 4868. Businesses, including trusts, must file Form 7004. To avoid interest and penalties when filing your tax return after July 15, 2020, pay the tax you estimate as due with your extension request.

All estimated income tax payments due on or after April 1, 2020, and before July 15, 2020 are postponed to July 15, 2020. First quarter 2020 estimated income tax payments due April 15, 2020, and second quarter 2020 estimated income tax payments due June 15, 2020, have both been postponed to July 15, 2020.

For the latest information, visit Filing and Payment Deadlines Questions and Answers and Coronavirus Tax Relief and Economic Impact Payments for Individuals and Families.

Businesses and Tax-Exempt Entities Financially Impacted by the Coronavirus

Employee Retention Credit

The Coronavirus Aid, Relief, and Economic Security Act (CARES Act), enacted on March 27, 2020, is designed to encourage eligible employers to keep employees on their payroll, despite experiencing financial hardship related to the coronavirus pandemic, with an employee retention tax credit (Employee Retention Credit). The refundable credit is 50% of up to $10,000 in wages paid by an eligible employer to employees after March 12, 2020, and before January 1, 2021. You can get immediate access to the credit by reducing the employment tax deposits you are otherwise required to make. If your employment tax deposits are not enough to cover the credit, you can request advance payment from the IRS by faxing your completed Form 7200, Advance of Employer Credits Due to COVID-19.  

For more information call 833-551-3588 or see Get details on the retention credit, Common errors to avoid when filing Form 7200Coronavirus Tax Relief for Businesses and Tax-Exempt Entities, and Employee Retention Credit FAQs.


Paid Leave for Workers and Tax Credits for Small- and Mid-Size Businesses

Under the Families First Coronavirus Response Act (FFCRA), businesses can claim two new refundable payroll tax credits. The paid sick leave credit and paid family leave credit are available for eligible employers who pay qualified sick leave wages and/or qualified family leave wages from April 1, 2020 through December 31, 2020, and who have fewer than 500 employees.

Paid sick leave for workers: An employer can allow a full-time employee up to 80 hours of paid sick leave. A part-time employee may be allowed paid sick leave for the number of hours the employee works over a two-week period, if the employee is unable to work or telework because they are: 

  • Subject to COVID-19 quarantine or isolation order.
  • Advised to self-quarantine due to COVID-19.
  • Experiencing COVID-19 symptoms and are seeking a medical diagnosis.
  • Caring for a person subject quarantine orders related to COVID-19 or has been advised to self-quarantine
  • Caring for a child whose school or place of care is closed or unavailable due to COVID-19

Employers pay the benefits at 100% of employee's regular pay up to $511 per day and $5,110 in total for the care of employee's own health.

For the care of an employee's family members, employers pay benefits at two-thirds of the employee's regular pay up to $200 per day and $2,000 total.

Paid family leave to care for child: An employer can give up to 10 weeks of paid family leave at two-thirds their regular pay for up to $200 per day and $10,000 total if the employee is unable to work or telework because they're caring for a child whose:

  • School or place of care is closed due to COVID-19
  • Childcare provider is unavailable due to COVID-19

With two weeks of paid sick leave and 10 weeks of paid family leave combined, an employee could receive up to a total of 12 weeks up to $12,000 of paid leave to care for a child.

Important note: An employer cannot use the same wages for the Employee Retention Credit and the credits for paid sick and family leave.

For more information, see Get details on paid leave for employeesNew credits fund employers for Coronavirus-related paid leave, Employer Credit Flow Chart and Tax Credits for Required Paid Leave FAQs.


Business Net Operating Losses (NOLs)

For information about business-related Net Operating Losses, see the section above titled Net Operating Losses (NOLs).


Filing and Payment Deadline Extended

The deadlines to file and pay federal income taxes are extended to July 15, 2020.

The CARES Act allows employers to defer the deposit and payment of the employer's share of social security taxes and self-employed individuals to defer payment of certain self-employment taxes. The deferral applies to deposits and payments of the employer's share of social security tax that would otherwise be required to be made during the period beginning on March 27, 2020 and ending December 31, 2020. The deferral also applies to certain railroad retirement taxes.

For more information, see Get answers to your questions on the filing and payment deadline.

More Resources

For more information, see Coronavirus Tax Relief for Businesses and Tax-Exempt Entities on IRS.gov. You can also visit the Department of Labor’s website, Families First Coronavirus Response Act: Questions and Answers.

COVID Relief for Taxpayers Claiming Net Operating Losses (NOLs)

Revenue Procedure 2020-24 provides guidance to taxpayers with net operating losses (NOLs) that are carried back under the Coronavirus Aid, Relief, and Economic Security (CARES) Act by providing procedures for:

  • waiving the carryback period in the case of a net operating loss arising in a taxable year beginning after Dec. 31, 2017, and before Jan. 1, 2021,

  • disregarding certain amounts of foreign income subject to transition tax that would normally have been included as income during the five-year carryback period, and

  • waiving a carryback period, reducing a carryback period, or revoking an election to waive a carryback period for a taxable year that began before Jan. 1, 2018, and ended after Dec. 31, 2017.

In Notice 2020-26, the IRS grants a six-month extension of time to file Form 1045, Application for Tentative Refund, or Form 1139, Corporation Application for Tentative Refund, as applicable, with respect to the carryback of a NOL that arose in any taxable year that began during calendar year 2018 and that ended on or before June 30, 2019. Individuals, trusts, and estates would file Form 1045, and corporations would file Form 1139.

COVID Relief for Partnerships with NOLs. Revenue Procedure 2020-23 allows eligible partnerships to file amended partnership returns using a Form 1065, U.S. Return of Partnership Income, by checking the “Amended Return” box and issuing amended Schedules K-1, Partner’s Share of Income, Deductions, Credits, to each of its partners. Partnerships filing these amended returns should write “FILED PURSUANT TO REV PROC 2020-23” at the top of the amended return.

Special temporary procedures for submission of certain NOL forms

In response to the COVID-19 pandemic and solely to implement the provisions of the CARES Act, starting on April 17, 2020 and until further notice, the IRS is implementing temporary procedures for the fax submission of certain Forms 1139 and Forms 1045.

For more information, see the IRS’s frequently asked questions and answers at "Temporary procedures to fax certain Forms 1139 and 1045 due to COVID-19."

The Coronavirus Aid, Relief, and Economic Security Act, Pub. L. No. 116-136 (CARES Act), provides relief to eligible individuals taking withdrawals or loans from qualified employer retirement plans and Individual Retirement Arrangements (IRAs).

Coronavirus-related withdrawals and loans

Individuals may be eligible for coronavirus-related relief on withdrawals from qualified employer retirement plans or IRAs and on loans from qualified employer retirement plans. The relief only applies to certain withdrawals and loans made to the following individuals:

  • The individual is diagnosed with the virus SARS-CoV-2 or with coronavirus disease 2019 (COVID-19) by a test approved by the Centers for Disease Control and Prevention;

  • The individual’s spouse or dependent is diagnosed with such virus or disease by such a test;

  • The individual experiences adverse financial consequences as a result of:

    • being quarantined, being furloughed or laid off, or having work hours reduced due to such virus or disease;
    • being unable to work due to lack of childcare due to such virus or disease; or
    • closing or reducing hours of a business owned or operated by the individual due to such virus or disease;

  • Other categories of individuals that that IRS may provide in future guidance.

Withdrawals: For withdrawals made in 2020 before December 31, 2020, eligible individuals may be able to request coronavirus-related withdrawals of up to an aggregate limit of $100,000 from their qualified employer retirement plans and IRAs. These coronavirus-related withdrawals:

  • Are not subject to the 10-percent additional tax on early distributions that would otherwise apply to most withdrawals before reaching age 59½.

  • May be repaid to a qualified employer plan or IRA within three years.

  • The tax due on withdrawals can be paid over three years.

Loans: Eligible individuals may be able to request a plan loan in an increased amount from their qualified employer retirement plan account. In general, the CARES Act increased the Internal Revenue Code limit on plan loans to eligible individuals from the lesser of $50,000 or 50 percent of the vested account balance to the lesser of $100,000 or 100% of the vested account balance. The loan limit is increased for loans made during the 180-day period beginning on March 27, 2020.

In addition, the CARES Act provides that in the case of an eligible individual with an outstanding plan loan (on or after March 27, 2020), loan repayments that are due at any time beginning on March 27, 2020, through December 31, 2020, may be delayed for up to one year.

Forthcoming IRS Guidance: This information is a brief summary of the plan distribution and plan loan provisions of section 2202 of the CARES Act. The IRS anticipates providing guidance on the application of these provisions in the near future. Before considering actions under these CARES Act provisions, individuals and plans should examine the CARES Act provisions as well as any guidance provided by the IRS.

For more information visit Coronavirus Tax Relief for Health Plans and Retirement Plans and Coronavirus-related relief for retirement plans and IRAs questions and answers. See also the Individual Retirement Accounts (IRAs) and workplace-based retirement plans section of the Filing and Payment Deadlines Questions and Answers, or Coronavirus Tax Relief and Economic Impact Payments.

Economic Impact Payment

The Coronavirus Aid, Relief, and Economic Security Act (CARES Act) legislation includes the Economic Impact Payments distributed by the IRS. Information in the Economic Impact Payment section above, includes information for international situations.

See also, the IRS’s Economic Impact Payment Information Center FAQs for specifics for people living in U.S. Territories and a special exception for U.S. Armed Forces members.

Filing and Payment Relief

The Treasury Department and the IRS announced new tax relief due to the Coronavirus (COVID-19). U.S. taxpayers who live and work abroad have until July 15, 2020 to file federal income tax returns and pay their federal income tax. For more details, see the information under the Filing and Payment section above.

Foreign Account Tax Compliance Act

The IRS provides an extension of time, for a Reporting Model 2 Foreign Financial Institution (FFI) or a Participating FFI, to file the Foreign Account Tax Compliance Act (FATCA) Report (Form 8966) to the IRS. The filing deadline for the FATCA Report will be extended from March 31, 2020 to July 15, 2020. Form 8809-I, Application for Extension of Time to File FATCA Form 8966, will not be required for this extension.

For more information, see FAQ Q4 in the "Reporting" category on the FATCA – FAQs General page.

Net Operating Loss

The IRS recently issued temporary instructions to fax certain Forms 1139, Corporation Application for Tentative Refund, and 1045, Application for Tentative Refund, due to COVID-19, that allow for digital transmission of these forms. See the news release for details about eligible refund claims. For more details about modifications to net operating loss rules made by the CARES Act, see the information under the Net Operating Loss section above.

Passport Certifications

The IRS will suspend new certifications to the Department of State for taxpayers who are "seriously delinquent" through July 15, 2020. These taxpayers are encouraged to submit a request for an Installment Agreement or, if applicable, an Offer in Compromise during this period. Certification prevents taxpayers from receiving or renewing passports.

Visit www.irs.gov/coronavirus for more updates and detailed guidance from the IRS.

TAS OPERATIONAL STATUS

The Taxpayer Advocate Service (TAS) remains committed to assisting taxpayers and championing their taxpayer rights. TAS will continue to offer help to qualified taxpayers. You can also visit our TAS Tax Tips and Get Help center for help with common tax questions.

Check this page frequently for updates.

Current Status

Taxpayer Advocate Service (TAS) employees are teleworking, sheltering at home and working to serve our taxpayers. We are experiencing delays and interruptions in working cases due to widespread IRS operation closures. These closures are also causing a high call volume to our organization resulting in delays in our response times. Please be patient.

  • For answers to general IRS tax questions, visit our Get Help section of the TAS website or IRS.gov.
  • For questions about Economic Impact Payments, please go to the IRS Coronavirus Relief site or our TAS Coronavirus (COVID-19) Tax Relief site. TAS, unfortunately, is not able to respond to general inquiries on this topic, at this time. These resources are the only and best ways to get answers, as the IRS phone lines have minimal staffing at this time and many of the IRS Campuses are closed in response to the Coronavirus (COVID-19) pandemic. The temporary closure of IRS facilities, in accordance with state and local orders, is playing an important role in stopping community spread COVID-19 among federal employees, families, friends and communities.

IRS OPERATIONAL STATUS

To protect the public and employees, and in compliance with orders of local health authorities around the country, certain IRS services are extremely limited or suspended until further notice.

To get the latest updates on the status of IRS Operations and see details about what the IRS is or is not currently working, visit IRS Operations During COVID-19: Mission-critical functions continue. We recommend checking this IRS page frequently for updates.

Visit the Coronavirus (COVID-19) TAS Customer Case Related Alerts page for status updates on important TAS case-related processes impacted by the coronavirus (COVID-19) pandemic.

Refunds

If you are expecting a refund, based on the amount of taxes you paid last year, you should file your 2019 tax return as soon as possible. If you have questions about your tax refund status after you've filed, visit TAS’s refund information hub for guidance on checking your refund status.

Tax Filing

Free tax return filing options are available to help you file your return timely. You can also download essential tax forms you’ll need to submit to the IRS.

Tax Balance Due 

If you are expecting to have a federal tax balance due and cannot pay it in full by the new July 15th due date, pay as much as you can, as interest, penalties, and additions to tax will begin to accrue on July 16, 2020. Take a look at the tax payment options available to help you plan ahead.

TAS Resources

Last modified June 4, 2020