As part of the IRS’s efforts to relieve American taxpayers from the financial effects of the novel coronavirus pandemic, many citizens received an Economic Impact Payment as authorized by the Coronavirus Aid, Relief, and Economic Security Act. According to the National Bureau of Economic Research, only 15% of recipients have spent the majority of the income, compared to a third of Americans who saved the check.
Whether you have spent the money or not, the millions of Americans who received the stimulus check will need to keep an eye out for Notice 1444 in the mail.
What is Included in This Notice?
Notice 1444 should arrive by mail after the receipt of the stimulus income. This notice verifies the amount the taxpayer received, how the payment was made, and how to report any payment that was not received.
Where Will My Notice 1444 be Sent?
For security reasons, the Internal Revenue Service will only contact taxpayers via mail. Be aware of possible scammers trying to reach vulnerable taxpayers over the phone or email, as this is an imposter.
The Notice will be sent to each recipient’s last known address within 15 days after the payment goes out.
How Long Should I Keep My Economic Impact Payment Information?
As with all other tax documents, citizens should expect to retain a copy of their tax returns and associated documents for at least 3 years.
What Have People Spent the Money On?
As it has been about 4 months since the Department of the Treasury announced the spending of $267 billion back to taxpayers, many are curious about how others have used the money. More than half of the surveyed Americans in a study by YouGov used the money to pay down their debt, and in June, nearly one-third of people said they used their stimulus check to pay bills. “It’s alarming to look at how many Americans used these funds to keep a roof over their head and pay for necessities considering the federal government has not provided clarity about another round of stimulus payments being provided in the near future,” notes YouGov.
To answer any further question about the Economic Impact Payment, visit the Information Center on the IRS website, https://www.irs.gov/coronavirus/economic-impact-payment-information-center
Note: This information cannot take the place of advice from a lawyer. Each case is different and needs individual legal advice. You should contact the LITC or a private attorney if you need representation on a tax matter or if you have questions.